By Dr. Theodore J. Davis, Jr. University of Delaware Newark, DE United States of America

1. 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

2. 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.

3. 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.

4. 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.

5. 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.

6. Methods • Data: This study compiles data from the • World Bank’s 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)

7. Methods: Capacity Building Independent Variables • Migration/population (or demographic characteristics) Population (number)Population growthPercent urban 2010Annual urban growth 2010Net migration 2011 estimateMedian age • Education Mean year of school (adults over 25)Literacy rate (ages 15 and over)Expected years of schoolingSchool enrollment, secondary educationProgression to secondary education

8. Methods: Capacity Building Independent Variables • Gender equality Percent parliament seats held by womenRatio male/female with secondary educationRatio male/female literacyRatio male/female expected years of schoolRatio male/female in the labor force • Personal satisfaction. With jobWith well-being healthWith your standard of livingWith affordable housingWith the health care systemWith the educational system

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

10. 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.

11. 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 nation’s population had the greatest potential for explaining variation in the nation’s level of poverty.

12. 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 nation’s level of poverty.

13. 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.

14. Models Predicting Levels of Poverty in Sub-Saharan Africa Stepwise Regression **P < .01 ***P < .001 Standard Error in parenthesizes

15. Models Predicting the Multidimensional Poverty Index Score **P < .01 ***P < .001 Standard Error in parenthesizes

16. 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

17. 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.

18. 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