The hidden costs of austerity for social programmes in the Global South: Qualitative insights from two complementary services in Ghana's Livelihood Empowerment Against Poverty Programme

Abstract

Promoted by the International Monetary Fund (IMF) in particular, fiscal austerity measures have been extensively implemented across the world in the last decade as a policy prescription to address the impacts of economic shocks. Consequently, the implementation of austerity has engendered a vast body of austerity impact assessment literature in the Global North, in particular. Although austerity measures have been equally implemented (and longer) in Global South contexts, the same level of intellectual curiosity has not been dedicated to understanding the human and social costs of austerity in the Global South. To help fill this gap, this paper examines the implications of fiscal austerity for the delivery of two complementary programmes linked to Ghana's conditional cash transfer (CCT) — the Livelihood Empowerment Against Poverty (LEAP) programme. The paper adopts a qualitative design where semi-structured interviews are conducted with (a) two LEAP officers, (b) two headteachers and (c) 35 LEAP beneficiaries in northern Ghana. The findings show that within the current context of fiscal austerity, mainly mediated through the government's commitment to “cut expenditures to the bone”, the two complementary services have been unfunded and thus do not exist in practice. The non-existence of complementary services has dire consequences for children's education as well as undermines Ghana's poverty reduction attempts through the implementation of the LEAP programme.