The fight against poverty and inequality continues to gain government attention. Consequently, the government continues to formulate and implement diverse policies with little success. However, there is a growing understanding that policies do not fail solely on their merits. Indeed, their success largely depends on the governance processes involved in their implementation too. Thus, there has been a resurgence of interest in the concept of governance since the early 1990s. This study aims to examine whether governance reduces poverty and income inequality in Ghana. Also, to investigate perceptions of policy implementation practices in Ghana. The study used both qualitative (Thematic and Content analysis) and quantitative analyses (Structural Equation Modelling) for the analysis. According to the qualitative analysis, policy formulation lacks the processes perceived by Ghana’s citizens. The quantitative analysis showed that governance has a positive effect on poverty and income inequality reduction. Thus, the absence of effective governance creates a gap in the path to progress and the abolition of poverty and income inequality. In addition, the poor should be involved in shaping their destiny through well-informed participatory politics. Furthermore, there should be zero tolerance for corruption and close monitoring of every poverty reduction program put in place by the government to ensure its transparent implementation.
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