IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v27y2004i2p215-237.html
   My bibliography  Save this article

Financing the Provision of Global Public Goods

Author

Listed:
  • P. B. Anand

Abstract

This paper examines the concept of global public goods (GPGs) and in that context explores the extent of aid (ODA) presently being diverted to GPG provision and whether such diversion skews aid‐flows towards some recipients. These are examined on the basis of OECD data for the late 1990s. The main argument of this paper is that ODA should not be used for financing GPG provision by developing countries. Instead, it is suggested that other sources of financing the provision of GPGs should be developed keeping in view the various technologies by which the GPGs can be produced and design principles for supra‐national institutions. Various arguments from Sandler, Barrett and Kanbur are considered. In particular, Kanbur's suggestion of two tensions involving the principles of economies of scale, subsidiarity, economies of scope and specialisation, is explored further.

Suggested Citation

  • P. B. Anand, 2004. "Financing the Provision of Global Public Goods," The World Economy, Wiley Blackwell, vol. 27(2), pages 215-237, February.
  • Handle: RePEc:bla:worlde:v:27:y:2004:i:2:p:215-237
    DOI: 10.1111/j.1467-9701.2004.00597.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9701.2004.00597.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1467-9701.2004.00597.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mitchell, Ronald B. & Keilbach, Patricia M., 2001. "Situation Structure and Institutional Design: Reciprocity, Coercion, and Exchange," International Organization, Cambridge University Press, vol. 55(4), pages 891-917, October.
    2. P. B. Anand, 2004. "Financing the Provision of Global Public Goods," The World Economy, Wiley Blackwell, vol. 27(2), pages 215-237, February.
    3. Marco Ferroni & Ashoka Mody, 2002. "International Public Goods : Incentives, Measurement, and Financing," World Bank Publications - Books, The World Bank Group, number 15238.
    4. P. B. Anand, 2003. "From conflict to co-operation: some design issues for local collective action institutions in cities," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(2), pages 231-243.
    5. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, October.
    6. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    7. Murdoch, James C. & Sandler, Todd, 1997. "The voluntary provision of a pure public good: The case of reduced CFC emissions and the Montreal Protocol," Journal of Public Economics, Elsevier, vol. 63(3), pages 331-349, February.
    8. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-487, May.
    9. Kanbur, Ravi & Sandler, Todd & Morrison, Kevin, 1999. "The Future of Development Assistance: Common Pools and International Public Goods," Staff General Research Papers Archive 1629, Iowa State University, Department of Economics.
    10. Sandler, Todd, 2001. "On financing global and international public goods," Policy Research Working Paper Series 2638, The World Bank.
    11. Barrett, Scott, 1990. "The Problem of Global Environmental Protection," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(1), pages 68-79, Spring.
    12. Todd Sandler, 1998. "Global and regional public goods: a prognosis for collective action," Fiscal Studies, Institute for Fiscal Studies, vol. 19(3), pages 221-247, August.
    13. Sandler, Todd, 1999. "Intergenerational Public Goods: Strategies, Efficiency, and Institutions," Staff General Research Papers Archive 1531, Iowa State University, Department of Economics.
    14. Jayaraman, Rajshri & Kanbur, Ravi, 1999. "International Public Goods and the Case for Foreign Aid," Working Papers 127684, Cornell University, Department of Applied Economics and Management.
    15. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
    16. Magnus Lodefalk & John Whalley, 2002. "Reviewing Proposals for a World Environmental Organisation," The World Economy, Wiley Blackwell, vol. 25(5), pages 601-617, May.
    17. Coase, R H, 1974. "The Lighthouse in Economics," Journal of Law and Economics, University of Chicago Press, vol. 17(2), pages 357-376, October.
    18. Kapur, Devesh, 2002. "The Common Pool Dilemma of Global Public Goods: Lessons from the World Bank's Net Income and Reserves," World Development, Elsevier, vol. 30(3), pages 337-354, March.
    19. Wendt, Alexander, 2001. "Driving with the Rearview Mirror: On the Rational Science of Institutional Design," International Organization, Cambridge University Press, vol. 55(4), pages 1019-1049, October.
    20. Raghbendra Jha & Manoj Panda & Ajit Ranade, 2002. "An Asian Perspective on a World Environmental Organisation," The World Economy, Wiley Blackwell, vol. 25(5), pages 643-657, May.
    21. Kanbur, Ravi, 2001. "Cross-Border Externalities, International Public Goods and Their Implications for Aid Agencies," Working Papers 127364, Cornell University, Department of Applied Economics and Management.
    22. Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
    23. Barrett, Scott, 2001. "International cooperation for sale," European Economic Review, Elsevier, vol. 45(10), pages 1835-1850, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. P. B. Anand, 2007. "Capability, Sustainability, and Collective Action: An Examination of a River Water Dispute," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 8(1), pages 109-132.
    2. Nilima Gulrajani, 2022. "Development narratives in a post-aid era: Reflections on implications for the global effectiveness agenda," WIDER Working Paper Series wp-2022-149, World Institute for Development Economic Research (UNU-WIDER).
    3. Andreas Löschel & Dirk Rübbelke, 2014. "On the Voluntary Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 81(322), pages 195-204, April.
    4. P. B. Anand, 2004. "Financing the Provision of Global Public Goods," The World Economy, Wiley Blackwell, vol. 27(2), pages 215-237, February.
    5. Gulrajani, Nilima, 2017. "Bilateral Donors and the Age of the National Interest: What Prospects for Challenge by Development Agencies?," World Development, Elsevier, vol. 96(C), pages 375-389.
    6. P. B. Anand, 2003. "From conflict to co-operation: some design issues for local collective action institutions in cities," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(2), pages 231-243.
    7. Abul Naga, Ramses H. & Jones, Philip, 2012. "Better to give than to receive? Altruistic provision of a global public good," Economics Letters, Elsevier, vol. 115(3), pages 480-483.
    8. Gabriel Bissiriou & Francis Ernest Kern, 2005. "L'éducation comme bien public mondial est-elle compatible avec l'Accord général sur le commerce des services ?," Mondes en développement, De Boeck Université, vol. 132(4), pages 39-55.
    9. Cepparulo, Alessandra & Giuriato, Luisa, 2009. "Aid Financing of Global Public Goods: an Update," MPRA Paper 22625, University Library of Munich, Germany.
    10. Geiguen Shin, 2022. "How Ostrom's design principles apply to large‐scale commons: Cooperation over international river basins," Review of Policy Research, Policy Studies Organization, vol. 39(5), pages 674-697, September.
    11. Alessandra Cepparulo & Luisa Giuriato, 2012. "Global Challenges and Country-Specific Responses through Aid Financing of Global Public Goods," Working Papers in Public Economics 156, University of Rome La Sapienza, Department of Economics and Law.
    12. Abbott, Andrew & Jones, Philip, 2012. "Government spending: Is development assistance harmonised with other budgets?," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 921-931.
    13. Pesci, Caterina & Costa, Ericka & Andreaus, Michele, 2020. "Using accountability to shape the common good," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 67.
    14. Christopher Marcoux & Bradley C. Parks & Christian M. Peratsakis & Timmons Roberts & Michael J. Tierney, 2013. "Environmental and Climate Finance in a New World: How Past Environmental Aid Allocation Impacts Future Climate Aid," WIDER Working Paper Series wp-2013-128, World Institute for Development Economic Research (UNU-WIDER).
    15. Deke, Oliver, 2004. "Financing National Protected Area Networks Internationally: The Global Environment Facility as a Multilateral Mechanism of Transfer," Kiel Working Papers 1227, Kiel Institute for the World Economy (IfW Kiel).
    16. Raechelle Mascarenhas & Todd Sandler, 2006. "Do donors cooperatively fund foreign aid?," The Review of International Organizations, Springer, vol. 1(4), pages 337-357, December.
    17. Todd Sandler & Daniel G. Arce, 2007. "New face of development assistance: public goods and changing ethics," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(4), pages 527-544.
    18. Travis Wiseman & Andrew Young, 2015. "Is foreign aid a pure public good for donor country citizens?," Constitutional Political Economy, Springer, vol. 26(4), pages 421-433, December.
    19. Marcoux, Christopher & Parks, Bradley C. & Peratsakis, Christian M. & Roberts, J. Timmons & Tierney, Michael J., 2013. "Environmental and Climate Finance in a New World: How Past Environmental Aid Allocation Impacts Future Climate Aid," WIDER Working Paper Series 128, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandra Cepparulo & Luisa Giuriato, 2012. "Global Challenges and Country-Specific Responses through Aid Financing of Global Public Goods," Working Papers in Public Economics 156, University of Rome La Sapienza, Department of Economics and Law.
    2. Sandler, Todd, 2001. "On financing global and international public goods," Policy Research Working Paper Series 2638, The World Bank.
    3. Ravi KANBUR, 2002. "International Financial Institutions And International Public Goods: Operational Implications For The World Bank," G-24 Discussion Papers 19, United Nations Conference on Trade and Development.
    4. Kanbur, Ravi, 2002. "IFI's and IPG's: Operational Implications for the World Bank," Working Papers 127298, Cornell University, Department of Applied Economics and Management.
    5. Todd Sandler & Daniel G. Arce, 2007. "New face of development assistance: public goods and changing ethics," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(4), pages 527-544.
    6. Alejandro Caparrós & Michael Finus, 2020. "Public good agreements under the weakest‐link technology," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 555-582, June.
    7. Johan Eyckmans & Michael Finus, 2007. "Measures to enhance the success of global climate treaties," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 7(1), pages 73-97, March.
    8. Daniel G. Arce M., 2004. "Asymmetric Leadership and International Public Goods," Public Finance Review, , vol. 32(5), pages 528-558, September.
    9. Buchholz Wolfgang & Heindl Peter, 2015. "Ökonomische Herausforderungen des Klimawandels," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 324-350, December.
    10. Todd Sandler, 2006. "Regional public goods and international organizations," The Review of International Organizations, Springer, vol. 1(1), pages 5-25, March.
    11. Wolfgang Buchholz & Wolfgang Peters, 2005. "A Rawlsian Approach to International Cooperation," Kyklos, Wiley Blackwell, vol. 58(1), pages 25-44, February.
    12. Todd Sandler, 2009. "Intergenerational Public Goods: Transnational Considerations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(3), pages 353-370, July.
    13. Matteo Roggero & Leonhard Kähler & Achim Hagen, 2019. "Strategic cooperation for transnational adaptation: lessons from the economics of climate change mitigation," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 19(4), pages 395-410, October.
    14. Raechelle Mascarenhas & Todd Sandler, 2006. "Do donors cooperatively fund foreign aid?," The Review of International Organizations, Springer, vol. 1(4), pages 337-357, December.
    15. Johan Eyckmans & Michael Finus, 2004. "An Empirical Assessment of Measures to Enhance the Success of Global Climate Treaties," Energy, Transport and Environment Working Papers Series ete0406, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    16. Lange, Andreas, 2004. "The Impact of Equity-preferences on the Stability of Heterogeneous International Agreements," ZEW Discussion Papers 04-50, ZEW - Leibniz Centre for European Economic Research.
    17. Philippe Dulbecco & Bertrand Laporte, 2005. "Le financement de la sécurisation du commerce international pour les pays en développement. Une approche en termes de bien public mondial," Revue Tiers-Monde, Armand Colin, vol. 0(2), pages 427-447.
    18. Abdulai, Awudu & Diao, Xinshen & Johnson, Michael, 2005. "Achieving regional growth dynamics in African agriculture: past lessons and future challenges," DSGD discussion papers 17, International Food Policy Research Institute (IFPRI).
    19. Cepparulo, Alessandra & Giuriato, Luisa, 2009. "Aid Financing of Global Public Goods: an Update," MPRA Paper 22625, University Library of Munich, Germany.
    20. Fabio Sferra & Massimo Tavoni, 2013. "Endogenous Participation in a Partial Climate Agreement with Open Entry: A Numerical Assessment," Working Papers 2013.60, Fondazione Eni Enrico Mattei.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:27:y:2004:i:2:p:215-237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.