The Impact of Government Revenue on the Achievement of the Sustainable Development Goals and the Amplification Potential of Good Governance

<p>The United Nations General Assembly established the Sustainable</p> <p>Development Goals in 2015 to achieve an equitable and sustainable future for</p> <p>all by 2030. This study aims to model the relationship between government</p> <p>revenue per capita, quality of governance and the targets of several of these</p> <p>goals, including the coverage of the critical determinants of health; water,</p> <p>sanitation, healthcare, and education. We used government revenue because</p> <p>the policies and practices of international and multinational organisations –</p> <p>including corporations and banks – are more likely to influence revenue rather</p> <p>than government spending in countries in which they are engaged. Also,</p> <p>government revenue reflects a government’s ability to spend across all sectors</p> <p>rather than just health or education. An unbalanced non-linear panel data</p> <p>model was employed, and annual data on 217 countries over the period 1960–</p> <p>2000 was used. The coverage of the Sustainable Development Goal variables</p> <p>was expressed as percentages and measures of the quality of governance included</p> <p>in the model. A linear relationship between revenue and the determinants of</p> <p>health would not be appropriate; therefore, we employ a logistic function. A</p> <p>standard panel logistic function would impose the same shape “S” curve on</p> <p>all countries, which is inappropriate. Therefore, we augment the parameters</p> <p>of the logistic function with measures of the quality of governance in each</p> <p>country, which allows each country to have a different “S” shape as the quality</p> <p>of its governance varies. Our study found that increased government revenue is</p> <p>associated with increased progress towards the Sustainable Development Goals.</p> <p>An improvement in the quality of governance could amplify this effect. This</p> <p>modelling and its accompanying visualisations can predict the potential of an</p> <p>increase in government revenue in an individual country regarding progress</p> <p>towards the Sustainable Development Goals.</p>