A recent study conducted by the Institute for Liberty and Policy Innovation (ILAPI) sheds light on the intricate challenges obstructing economic prosperity in Ghana, notably stemming from administrative bottlenecks in accessing funds of deceased family members. These hurdles, as outlined in the report, have far-reaching implications for poverty levels, economic stress, and social stability within the nation.
The report exposes a stark reality: Ghana’s total dependency ratio stands at a staggering 67.4%, indicating that over half of the population, including spouses and children, rely on the working class, which constitutes merely 32.6% of the populace, for sustenance. This imbalance heaps significant pressure on the productive sector of society, resulting in economic strain.
Moreover, the quarterly multidimensional poverty report for 2022 released by the Ghana Statistical Service indicates that 23.4% of Ghanaians live in monetary poverty, with a distressing 46% facing multidimensional poverty. The inability to access necessary resources further exacerbates this issue, impeding the fight against poverty on multiple fronts.
One of the critical issues highlighted in the ILAPI report revolves around the administrative complexities hindering families from accessing funds held by banks, insurance, and pension firms after the demise of a relative. The convoluted processes involving unclear documentation, structural challenges, and associated costs often push 46% of affected families to abandon their rightful claims due to the arduous nature of the procedures.
The ramifications of these bureaucratic obstacles extend beyond financial matters, affecting fundamental aspects of human dignity. Families grappling with these challenges often experience dire consequences such as school dropouts, accumulating debt, housing instability, malnutrition, mental health struggles, and even instances of child trafficking and other societal issues.
One glaring issue highlighted by the report is the lack of transparency in financial institutions, with a significant percentage of beneficiaries and Next of Kin (NoK) left unaware of their entitlements. Astonishingly, an overwhelming 85.50% of Ghanaians do not possess a written will, leading to complications in asset distribution and potential instances of inheritance fraud.
In response to these critical findings, the study proposes a series of recommendations to alleviate these systemic issues. It advocates for standardized processes across financial institutions, comprehensive public education campaigns on creating wills, increased transparency in communication between institutions and beneficiaries, policy reforms to streamline access procedures, and measures to protect private property without undue bureaucratic hurdles.
The study emphasizes the urgency of addressing these challenges to ensure equitable access to deceased funds, which could significantly alleviate poverty and dependency, fostering a more economically prosperous and fair society for all Ghanaians.
Source : Marzuuq Issah | Ghana360news.com
