Reaching SDSs Through Public Institutions and Good Governance: Why Trust Matters

Abstract

Успішна реалізація Цілей сталого розвитку (ЦСР) залежить від ефективного державного управління та надійних державних інституцій. ЦСР 16 наголошує на побудові підзвітних інституцій на всіх рівнях, що вимагає довіри громадськості до інституцій та міжособистісної довіри між громадянами, оскільки довіра впливає на ефективність політики та реакцію громадськості. Глобальна фінансова криза 2008 року виявила значне зниження довіри до державних та фінансових інституцій, що підкреслило критичну потребу у відновленні.

The successful implementation of the Sustainable Development Goals (SDGs) depends on effective public governance and strong public institutions. SDG 16 emphasizes building accountable institutions at all levels, which requires public trust in institutions and interpersonal trust among citizens because trust influences policy effectiveness and public responses. The 2008 global financial crisis revealed a substantial decline in trust in public and financial institutions, underscoring the urgent need for restoration Purpose. This study aims to conceptualize trust as an emotional determinant of economic and social processes, as well as outline a multilevel framework for rebuilding trust within a country's financial system. Furthermore, the study presents a case analysis of ensuring integrity and transparency in Ukraine's financial system within the context of building effective institutions for SDG implementation following the 2014 reform. Results. Trust is identified as a multidimensional, multilevel concept comprising interpersonal, institutional, and systemic components. Interpersonal trust fosters cooperation and reduces transaction costs. Systemic trust reflects confidence in the overall economic system, with price and financial stability as key indicators. Institutional trust is vital for good governance and policy compliance. Globally, financial services remain among the least trusted sectors. Conclusions. In order to achieve the SDGs, strong institutions built on trust are required, particularly in the financial sector. The multilevel trust concept provides a framework for restoration. To address the lack of transparency in Ukraine's financial system, this study recommends implementing mandatory, standardized disclosure requirements for financial products and services. These measures—including clear, upfront information; enhanced consumer rights protection; and the application of behavioral research—are crucial for fostering trust, enabling informed consumer choices, and establishing long-term bankcustomer relationships