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Financing the Provision of Global Public Goods

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  • 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. Copyright Blackwell Publishing Ltd 2004.

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  • 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
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    1. 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.
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    5. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, Fall.
    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. Coase, R H, 1974. "The Lighthouse in Economics," Journal of Law and Economics, University of Chicago Press, vol. 17(2), pages 357-376, October.
    9. 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.
    10. Wendt, Alexander, 2001. "Driving with the Rearview Mirror: On the Rational Science of Institutional Design," International Organization, Cambridge University Press, vol. 55(04), pages 1019-1049, September.
    11. 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.
    12. Sandler, Todd, 1999. "Intergenerational Public Goods: Strategies, Efficiency, and Institutions," Staff General Research Papers Archive 1531, Iowa State University, Department of Economics.
    13. Barrett, Scott, 2001. "International cooperation for sale," European Economic Review, Elsevier, vol. 45(10), pages 1835-1850, December.
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    Cited by:

    1. Alessandra Cepparulo & Luisa Giuriato, 2012. "Global Challenges and Country-Specific Responses through Aid Financing of Global Public Goods," Working Papers 156, University of Rome La Sapienza, Department of Public Economics.
    2. 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.
    3. 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.
    4. 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.
    5. 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).
    6. Raechelle Mascarenhas & Todd Sandler, 2006. "Do donors cooperatively fund foreign aid?," The Review of International Organizations, Springer, vol. 1(4), pages 337-357, December.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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).
    13. Cepparulo, Alessandra & Giuriato, Luisa, 2009. "Aid Financing of Global Public Goods: an Update," MPRA Paper 22625, University Library of Munich, Germany.
    14. repec:eee:wdevel:v:96:y:2017:i:c:p:375-389 is not listed on IDEAS

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