Accra: The Institute for Liberty and Policy Innovation (ILAPI) has called on the government to prioritize creating conditions for private businesses to generate jobs over increasing the number of beneficiaries of social intervention programs. The institute emphasized that the rising number of people relying on programs such as the Livelihood Empowerment Against Poverty (LEAP) should be seen as an indication of growing poverty levels.
According to Ghana News Agency, Mr. Peter Bismark Kwofie, Executive Director of ILAPI, highlighted that sustainable employment generated by private businesses is more effective in alleviating poverty than ongoing reliance on government welfare programs. He urged the government to direct more resources toward strengthening the private sector, facilitating business growth, and increasing employment opportunities.
Mr. Kwofie stressed that businesses, rather than government welfare programs, have the potential to lift individuals out of poverty. During a press conference, he argued that while government social programs involve resource redistribution, businesses create jobs and income that can lead to lasting improvements in household livelihoods.
He cautioned against viewing the increase in participants in programs like LEAP and school feeding as an economic success, warning that it may reflect a rise in poverty. As a result, the government might need to increase funding for such programs, potentially necessitating additional borrowing or taxation.
Mr. Kwofie concluded by stating that the optimal solution is expanding business employment, advocating for a more relaxed regulatory environment to allow businesses to allocate more capital toward expansion and job creation.