The aim of this paper was to examine two important factors that serve as the foundation for development and poverty reduction in Sub-Saharan Africa: capacity building (as represented by human development characteristics) and good governance. The data in this study revealed an interesting link between human development characteristics and poverty reduction.
First, it suggested that personal satisfaction with life opportunities and government services have no significant influence on the poverty reduction in Sub-Saharan Africa.
Second, it suggested that the level of education among the nation’s population had the greatest potential for explaining variation in the nation’s poverty reduction efforts. Third, migration and population characteristics were associated with producing the greatest change in poverty reduction. Finally, that gender equality is important to poverty reduction to the extent that it relates to equality in
Good governance appears to be a stronger factor in influencing changes in poverty levels, but weaker in explaining variation in poverty reduction in Sub-Saharan Africa. The findings lend support to the idea of an integrated socio-economic development framework in addition to an institutional framework for poverty reduction. A socioeconomic framework that emphasizes human capital development by way of enhanced educational attainment and controlling population growth. Also, an institutional framework that increases the effectiveness of governmental operations should be simultaneously pursued to reduce poverty in Sub-Saharan Africa.