Government Revenue and Development Analysis

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Questions and Answers

What is indicated in Column 1 'REVENUE'?

Additional revenue in 2015 USD, additional revenue per capita in 2015 USD or increase in percentage of government revenue.

What should be done if estimates are available for several years?

Convert estimates to 2015 USD, express as a percentage of government revenue and use the average.

What is the purpose of projecting losses/gains over several years?

To visualize the impact of the increase in revenue on governance indicators and development indicators.

What should be done when the losses/gains only took place in one year?

Analyze for one year only. Signup and view all the answers

What can the tool be used to calculate regarding government revenue?

The percentage increase in government revenue per capita. Signup and view all the answers

What is included in basic drinking water services?

The percentage of the population drinking water from an improved source. Signup and view all the answers

What defines improved sanitation services?

The population using improved sanitation facilities not shared with other households. Signup and view all the answers

What does the term 'control of corruption' capture?

Perceptions of the extent to which public power is exercised for private gain. Signup and view all the answers

What does 'government effectiveness' refer to?

Perceptions of the quality of public services and the civil service's independence. Signup and view all the answers

What is assessed under 'political stability'?

The likelihood that the government will be destabilized or overthrown. Signup and view all the answers

What is the purpose of the Government Revenue and Development Estimations (GRADE) model?

To translate the impact of government revenue changes on access to Sustainable Development Goals (SDG) indicators. Signup and view all the answers

Which indicators did the GRADE model analyze?

Child school years Signup and view all the answers

Additional revenue impacts lower-income countries more significantly than higher-income countries.

True Signup and view all the answers

What two methodologies did GRADE use to quantify the effects of revenue on governance quality?

Two contrasting econometric methodologies. Signup and view all the answers

What does GRADE assume regarding how governments spend additional revenue?

They allocate resources according to national priorities. Signup and view all the answers

Which dataset does GRADE use for government revenue per capita?

UNU WIDER Government Revenue Dataset (GRD). Signup and view all the answers

Governance indicators do not affect the relationship between government revenue and SDG targets.

False Signup and view all the answers

How does GRADE express the SDG indicators during the analysis?

As percentages ranging from 0 to 100. Signup and view all the answers

Which of the following sources are used for SDG data in GRADE?

UNESCO Signup and view all the answers

What is the anticipated effect of revenue increases on governance indicators over time?

There is a consistent and beneficial effect across a ten-year horizon. Signup and view all the answers

The GRADE model can be independently reused by developers.

True Signup and view all the answers

Study Notes

Introduction to GRADE

GRADE: Government Revenue and Development Estimations, analyzes the impact of government revenue on access to Sustainable Development Goals (SDG) indicators.
Aims to highlight how increased revenue can improve public services like education and healthcare, essential for fundamental rights.
Employs unbalanced panel data modeling from 217 countries (1960-2000), using a logistic function to gauge relationship between revenue and SDG indicators.
Governance quality significantly affects the effectiveness of government spending; better governance amplifies the impact of additional revenue.
The model reveals a virtuous cycle: improved governance leads to increased revenue, which in turn enhances governance further.

Key Findings and Methodology

Additional revenue has a larger effect in lower-income countries compared to higher-income countries due to greater relative gains.
For instance, revenue per capita in 2016 was $80 in low-income versus $12,750 in high-income countries.
GRADE uses data from the UNU WIDER Government Revenue Dataset (most recent update: August 2023) to model government revenue.
All data expressed in constant 2015 USD, filtered to exclude grants, ensuring realistic revenue capacity representation.
The model assesses SDG indicators as percentages/proportions, enabling projections on population impact from revenue changes.

Governance Indicators and Revenue

GRADE utilizes Worldwide Governance Indicators to link the quality of governance with SDG outcomes.
Responsibilities for resource allocation vary by country, with GRADE not assuming specific sector spending from additional revenue.
Increased governance quality is correlated with rising government revenues, emphasizing their interdependent relationship.

Projections and Estimates

Benefits from increased revenue are not immediate; they typically reveal a lag effect over ten years.
GRADE estimates are subject to fluctuations due to varying government revenue per capita and governance quality over time.
The effectiveness of additional revenue differs across countries, heavily reliant on existing governance structures.

GRADE Model Usage

GRADE facilitates both single-country and multiple-country analyses.
Users input countries, revenue amounts (in constant 2015 USD), and specific SDG indicators to predict outcomes.
For multiple-country analyses, data can be uploaded via CSV files, enabling broader studies across various nations.

Research Support

GRADE research funded by several entities, including the Scottish Funding Council and the Global Challenges Research Fund, indicating substantial institutional support.
Extensive resources and tools for model usage available online, promoting broader accessibility and transparency in data analysis.### Advanced Data Sources
Population and government revenue data used in GRADE can be downloaded.
Users can select one country or all countries for data download; all includes countries without additional revenue.
Option to choose 'selected outcomes' or 'all outcomes', with the latter providing comprehensive projections on coverage improvements.
The formula for calculating percentage of people without access is: (improved coverage – current coverage) / (100 – current coverage).

Definitions for SDGs in GRADE

Basic Drinking Water Services: Percentage of the population drinking from improved sources with a collection time under 30 minutes. Includes both basic and safely managed drinking water.
Safely Managed Drinking Water Services: Improved sources accessible on-premises, available when needed, and free from contamination.
Basic Sanitation Services: Use of improved sanitation facilities not shared, accounting for both basic and safely managed sanitation.
Safely Managed Sanitation Services: Improved facilities not shared, with safe disposal of excreta either in situ or through transport to treatment sites.

Education Metrics

School Attendance: Utilizes UNESCO estimates of out-of-school rates to model government revenue and governance impact on attendance.
Number of benefitting children from government revenue increase is calculated by changes at each education level multiplied by the school-age population.

Worldwide Governance Indicators (WGI)

WGI encompasses indicators for over 200 countries and territories since 1996 across six governance dimensions.
Composite indicators based on over 30 data sources, rescaled for comparability using the unobserved component model.
Composite scores range from -2.5 to +2.5, with higher values indicating better governance.

Dimensions of Quality of Governance

Control of Corruption: Perceptions of corruption levels, including petty and grand forms, and the state's capture by elites.
Government Effectiveness: Quality of services, civil service independence, policy formulation, and implementation credibility.
Political Stability: Likelihood of government destabilization through unconstitutional or violent means, including terrorism.
Regulatory Quality: Government’s ability to create and enforce policies that foster private sector development.
Rule of Law: Confidence in societal rules, quality of enforcement and property rights, and crime and violence likelihood.
Voice and Accountability: Level of citizen participation in government selection, freedom of expression, and media independence.

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Description

Explore the GRADE model for analyzing government revenue and its impact on public services. This quiz covers key concepts, methodologies, and practical applications for both single and multiple-country analyses. Test your understanding of how revenue affects development outcomes.