The Institute for Liberty and Policy Innovation (ILAPI) has cautioned the government against treating the expansion of social intervention programmes as a measure of economic progress, arguing that sustainable job creation should be the primary strategy for reducing poverty.
The institute said a growing number of beneficiaries under programmes such as the Livelihood Empowerment Against Poverty (LEAP) could instead point to worsening economic hardship and an increasing dependence on state support.
Speaking at a press conference, Executive Director of ILAPI, Peter Bismark Kwofie, called on the government to redirect more resources towards creating a business environment that allows private companies to expand and employ more people.
According to him, social intervention programmes provide important support to vulnerable households but do not address the underlying causes of poverty in the same way that sustainable employment does.
He argued that government welfare programmes largely redistribute existing resources, while private businesses create new economic opportunities through investment, employment and income generation.
Mr Kwofie therefore urged policymakers to focus on strengthening the private sector rather than measuring progress by the number of people added to social programmes.
He said an increase in beneficiaries of programmes such as LEAP and the school feeding programme should not automatically be regarded as an achievement, particularly if the increase is driven by a growing number of people falling into poverty.
He warned that expanding welfare programmes could also place additional pressure on government finances, potentially requiring higher taxation or increased borrowing to sustain them.
“The best solution is for us to have more businesses employing,” he said.
Mr Kwofie also called for reforms to the regulatory environment, arguing that excessive regulatory burdens could limit the amount of capital businesses are able to deploy towards expansion and job creation.
He maintained that creating conditions for businesses to grow and employ more people would provide a more sustainable pathway out of poverty than prolonged dependence on government welfare programmes.
