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International Financial Institutions And International Public Goods: Operational Implications For The World Bank

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Ravi KANBUR
Abstract

The global International Financial Institutions (IFIs) increasingly justify their operations in terms of the provision of International Public Goods (IPGs). This is partly because there appears to be support among the rich countries of the North for expenditures on these IPGs, in contrast to the "aid fatigue" that afflicts the channelling of country specific assistance. But do the IFIs necessarily have to be involved in the provision of IPGs? If they do, what are the terms and conditions of that engagement? How does current practice compare to the ideal? And what reforms are needed to move us closer to the ideal? These are the questions that this paper attempts to ask, in the framework of the theory of International Public Goods, and in light of the practice of International Financial Institutions, the World Bank in particular. For the World Bank, a series of specific operational and resource reallocation implications are drawn from the reasoning.

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Paper provided by United Nations Conference on Trade and Development in its series G-24 Discussion Papers with number 19.

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Date of creation: 2002
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Handle: RePEc:unc:g24pap:19

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  1. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany. [Downloadable!]
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  2. 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. [Downloadable!]
  3. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank. [Downloadable!]
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