Wealth Accumulation Utilization and Retention

Abstract

The reduction of poverty has been the objective of many progressive Governments all over the world. Althoughpoverty reduclion was not explicity pursued in the early development strategies of Ghana, during the last l 0 years or so, it has been directed that all projects and programmes should have a poverty reduction focus. Results from the Ghana Living Standards Survey indicate th.at the incidence of Consumption poverty declined by 8.2 percent from 1992 to 1998. However, poverty rates in rural savannah and rural coastal areas of Ghana have increased Compared to 1992. Poverty reduction among the large number of food crop farmers has been marginal. Nonetheless, about 29. 4 percent of Ghanaians are still below the poverty line and cannot meet their basic nutritional needs. With these Abysmal results, there must be a new approach to improving the livelihood of pt1ople. This paper argues that if attention could be paid to the accumulation of wealth and its utilization by individuals, there will be better chances of reducing poverty considerably. Individuals should be encouraged to pursue wealth legitimately to improve their well-being. The wealth should be used to the benefit of society so that it will generate the necessary economies. Taking off from Adam Smith Ghana should recognize and vigorously pursue the role of the private sector as the engine of growth and the public sector as a catalytic factor. The paper Advocates a sound macro-economic policy and consistent efforts by the public sector to acC111'1ulate wealth in terms of foreign exchange reserves and physical infrastructure through savings and investments. Wealth is treated in its broad definition to include physical assets; human assets such as time, land; skills; :social assets like health and education; and collective assets like common property such as forests, grazing grounds, water bodies. The paper abhors laziness and, therefore, discourages intervention programmes and remittances that give hand-outs to able-bodied persons who do not want to do productive work