Institutional quality, financial stability, and the achievement of the sustainable development goals 1, 2, and 3 in Sub-Saharan Africa

This thesis is made up of three empirical chapters that examine the relationship between institutional quality, financial stability, and SDGs 1 (No Poverty), 2 (Zero Hunger), and 3 (Good Health and Well-being) in SSA. Chapter 2 reviewed institutional quality and financial stability theories and emphasized how institutions become effective (complementary and mutually supportive) or weak (substitutive and competitive). The thesis employed panel data from 23 to 28 SSA countries from 2002 to 2021. Chapter three interrogates the influence of institutional quality and financial stability on well-being (SDG 3), while also exploring the roles of poverty and food insecurity. Using the Quality of Life (QoL) theory, this chapter constructs a comprehensive well-being index with personal freedom, economic freedom, and life expectancy data. The analysis reveals that institutional quality, financial stability, food security, and environmental quality all positively contribute to people's well-being, while poverty and inflation have a detrimental impact on well-being. Chapter four assesses the direct impact of institutional quality and financial stability on achieving SDG 1 (No Poverty) and accounts for the role of hunger, well-being, and colonial legacies. The findings indicate that strong institutions and a stable financial system are key drivers in reducing poverty across the region and that the impact of the colonial footprint is more pronounced in French-speaking countries compared to their English-speaking counterparts. Furthermore, while improved well-being is shown to reduce poverty, hunger consistently increases it. Chapter five examines the intricate interplay of institutional quality, financial stability, poverty, and well-being on food security (SDG2) and its dimensions: availability, affordability, quality, and sustainability. The findings underscore the essential role of institutional quality in ensuring food security. The research also highlights that financial stability specifically improves food affordability and sustainability. This thesis provides strong evidence-based arguments that for SSA countries to achieve SDGs 1, 2, and 3, the starting point must be a concerted focus on strengthening institutional quality and financial systems.