Assessing Capacity Building and Good Governance Indicators in Sub-Saharan Africa: The Implications for Poverty Reduction By Dr. Theodore J. Davis, Jr. University of Delaware Newark, DE United States of America

Aim of this paper To examine two important factors that serve as the foundation for poverty reduction in Sub-Saharan Africa: capacity building good governance.

Objectives of Paper To do a comparative evaluation of select capacity building (or human development) markers and indicators of good governance across regions. To examine the connection between the select capacity building measures and the level of poverty. To examine the relationship between the indicators of good governance and level of poverty. To discuss the implications for the creation of a policy approach that results in poverty reduction and sustainable social, political, and economic development in Sub-Saharan Africa.

Capacity Building Capacity building has been defined as the "process of developing and strengthening the skills, instincts, abilities, processes and resources that organizations and communities need to survive, adapt, and thrive in the fast-changing world." Capacity building encompass all the human, scientific, technological, organizational, and institutional resource capabilities in a country. Capacity building occurs on many levels, and successful capacity building depends heavily upon human capacity, organizational capacity, and institutional capacity.

Good Governance Governance has been defined as the process of decision-making and the process of how decisions are implemented. Good governance is about how institutions (in this case public institutions) conduct their affairs.

Methods Data: This study compiles data from the World Banks Africa Database, the 2010 CIA World Fact Book, and the Human Development Report 2010 Dependent Variables: Adjusted Human Development Index (HDI) The Multidimensional Poverty Index (MPI)

Methods: Capacity Building Independent Variables Migration/population (or demographic characteristics) Population (number) Population growth Percent urban 2010 Annual urban growth 2010 Net migration 2011 estimate Median age Education Mean year of school (adults over 25) Literacy rate (ages 15 and over) Expected years of schooling School enrollment, secondary education Progression to secondary education

Methods: Capacity Building Independent Variables Gender equality Percent parliament seats held by women Ratio male/female with secondary education Ratio male/female literacy Ratio male/female expected years of school Ratio male/female in the labor force Personal satisfaction. With job With well-being health With your standard of living With affordable housing With the health care system With the educational system

Methods: Good Governance Independent Variables World Banks Worldwide Governance Indicators (WGI): voice and accountability political stability and absence of violence government effectiveness regulatory quality rule of law control of corruption.

Findings: Regional Differences There were significant differences in the capacity building and good governance measures across regions. Differences in gender equality and personal satisfaction with life opportunities were most evident across regions. The data indicated that good governance continues to be an issue throughout Sub-Saharan Africa regardless of region.

Findings: Capacity Building and Poverty Level The showed that the migration and population characteristics were associated with producing change in the level of poverty. It showed that the level of education among the nations population had the greatest potential for explaining variation in the nations level of poverty.

Findings: Capacity Building and Poverty Level The data indicated that gender equality was important in reducing poverty to the extent that it relates to inequality in education. It showed that personal satisfaction with life opportunities or government services had no significant influence on the nations level of poverty.

Findings: Good Governance and Poverty Level While some nations (in some regions) had better good governance scores than others, no single nation or region in Sub-Sahara Africa could be identified having the good governance characteristics necessary to aid in poverty reduction Good governance appears to be a stronger factor influencing changes in poverty level, but weaker in explaining variation in poverty.

Models Predicting Levels of Poverty in Sub-Saharan Africa Human Development Index Multidimensional Poverty Index Constant Population growth ** (.031) Median age---- Median Years of School.013** (.004) -.026** (.009) Expected years schooling---- Ratio male/female literacy---- Ratio male/female expected years of school---- Government Effectiveness.062*** (.016) ---- Regulatory Quality__ Adjusted R Stepwise Regression **P <.01 ***P <.001 Standard Error in parenthesizes

Models Predicting the Multidimensional Poverty Index Score B Standard Error Significance Constant.240 Population growth Median age---- Median Years of School Expected years schooling Ratio male/female literacy Ratio male/female expected years of school Government Effectiveness---- Regulatory Quality---- Adjusted R **P <.01 ***P <.001 Standard Error in parenthesizes

Closing Thoughts and Policy Suggestions If Africa is to become economically viable in an increasingly globalized world, the nations and regions must develop educational policies that will increase literacy and the median years of formal education. Non-governmental policy organizations should encourage a development strategy that Develops a minimum continental educational standard Stresses access to quality public education Improves the quality of public education Ensures gender equality and equity in public education

Closing Thoughts and Policy Suggestions The findings suggest that policies and efforts aimed at improving government effectiveness, political stability and regulatory quality would have a significant impact on poverty reduction efforts. The findings lend support to the adoption of an integrated policy approach that takes into consideration social development alongside with economic development as a means to reduce poverty in Sub-Saharan Africa.

Closing Thoughts and Policy Suggestions The social component of the strategy would emphasize human capital development, while the economic component would employ an inclusive growth strategy that improves the delivery of core public services and spread the benefits of economic growth more widely among the population. Inclusive growth strategy would necessitate the develop of policies that provide the poor with opportunities to improve their situation