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Assessing Capacity Building and Good Governance Indicators in Sub-Saharan Africa: The Implications for Poverty Reduction

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Title: Assessing Capacity Building and Good Governance Indicators in Sub-Saharan Africa: The Implications for Poverty Reduction


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 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)

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 Banks 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
    nations population had the greatest potential
    for explaining variation in the nations 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 nations 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
  Human Development Index Multidimensional Poverty Index
     
Constant   .240 .249
Population growth ---- .101 (.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 R2   .522 .574
Stepwise Regression P lt .01 P lt .001
Standard Error in parenthesizes
15
Models Predicting the Multidimensional Poverty
Index Score
  B  StandardError  Significance 
Constant   .240    
       
Population growth .152 .040 .004
Median age ---- ---- ----
Median Years of School -.040 .011 .001
Expected years schooling .020 .010 .045
Ratio male/female literacy .355 .165 .040
Ratio male/female expected years of school -.436 .197 .036
Government Effectiveness ---- ----  
Regulatory Quality ---- ----  
       
Adjusted R2 .626    
P lt .01 P lt .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
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