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New face of development assistance: public goods and changing ethics

Author

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  • Todd Sandler

    (School of Economic, Political and Policy Sciences, University of Texas at Dallas, 2601 N Floyd Road, Richardson, TX 75083-0688, USA)

  • Daniel G. Arce

    (School of Economic, Political and Policy Sciences, University of Texas at Dallas, 2601 N Floyd Road, Richardson, TX 75083-0688, USA)

Abstract

This article indicates the policy implications of the increasing emphasis of public goods in foreign assistance. Even the Millennium Development Goals (MDGs) reflect this public good emphasis. This changing composition of aid has important ethical implications: public good aid is driven by altruism and self-interest owing to benefit spillovers to donor nations. We show how key properties of publicness influence not only the desired direction of income transfers, but also the identity of the appropriate donor (i.e. donor nation, multilateral agency, or charitable foundation). The article also highlights how the spatial spillovers of public goods affect aid decisions. Finally, we relate five essential sectors to their public good properties and policy implications. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:jintdv:v:19:y:2007:i:4:p:527-544
    DOI: 10.1002/jid.1385
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    File URL: http://hdl.handle.net/10.1002/jid.1385
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    References listed on IDEAS

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    1. Sandler,Todd & Hartley,Keith, 1999. "The Political Economy of NATO," Cambridge Books, Cambridge University Press, number 9780521630931.
    2. Kaul, Inge & Conceicao, Pedro & Le Goulven, Katell & Mendoza, Ronald U. (ed.), 2003. "Providing Global Public Goods: Managing Globalization," OUP Catalogue, Oxford University Press, number 9780195157413.
    3. Todd Sandler & Daniel G Arce M, 2002. "A conceptual framework for understanding global and transnational public goods for health," Fiscal Studies, Institute for Fiscal Studies, vol. 23(2), pages 195-222, June.
    4. Kaul, Inge & Grunberg, Isabelle & Stern, Marc (ed.), 1999. "Global Public Goods: International Cooperation in the 21st Century," OUP Catalogue, Oxford University Press, number 9780195130522.
    5. P. B. Anand, 2004. "Financing the Provision of Global Public Goods," The World Economy, Wiley Blackwell, vol. 27(2), pages 215-237, February.
    6. Marco Ferroni & Ashoka Mody, 2002. "International Public Goods : Incentives, Measurement, and Financing," World Bank Publications, The World Bank, number 15238, June.
    7. Murdoch, James C & Sandler, Todd & Sargent, Keith, 1997. "A Tale of Two Collectives: Sulphur versus Nitrogen Oxides Emission Reduction in Europe," Economica, London School of Economics and Political Science, vol. 64(254), pages 281-301, May.
    8. Sandler,Todd, 1997. "Global Challenges," Cambridge Books, Cambridge University Press, number 9780521587495, April.
    9. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    10. Vicary, Simon & Sandler, Todd, 2002. "Weakest-link public goods: Giving in-kind or transferring money," European Economic Review, Elsevier, vol. 46(8), pages 1501-1520, September.
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    12. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-598, September.
    13. 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.
    14. Raechelle Mascarenhas & Todd Sandler, 2005. "Donors' Mechanisms for Financing International and National Public Goods: Loans or Grants?," The World Economy, Wiley Blackwell, vol. 28(8), pages 1095-1117, August.
    15. Itaya, Jun-ichi & de Meza, David & Myles, Gareth D., 1997. "In praise of inequality: public good provision and income distribution," Economics Letters, Elsevier, vol. 57(3), pages 289-296, December.
    16. Sandler,Todd, 2004. "Global Collective Action," Cambridge Books, Cambridge University Press, number 9780521542548.
    17. Arce M, Daniel G, 2001. "Leadership and the Aggregation of International Collective Action," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 114-137, January.
    18. Vicary, Simon, 1990. "Transfers and the weakest-link : An extension of Hirshleifer's analysis," Journal of Public Economics, Elsevier, vol. 43(3), pages 375-394, December.
    19. Arce M., Daniel G. & Sandler, Todd, 2001. "Transnational public goods: strategies and institutions," European Journal of Political Economy, Elsevier, vol. 17(3), pages 493-516, September.
    20. Paul Collier & V. L. Elliott & Håvard Hegre & Anke Hoeffler & Marta Reynal-Querol & Nicholas Sambanis, 2003. "Breaking the Conflict Trap : Civil War and Development Policy," World Bank Publications, The World Bank, number 13938, June.
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    Cited by:

    1. Tom Dedeurwaerdere & Paolo Melindi-Ghidi & Willem Sas, 2015. "Voluntary Provision of Public Knowledge Goods: Group-Based Social Preferences and Coalition Formation," Working Papers halshs-01224007, HAL.
    2. P. B. Anand & Des Gasper, 2007. "Special issue on human security, well-being and sustainability: rights, responsibilities and priorities," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(4), pages 449-456.
    3. 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.
    4. Tom DEDEURWAERDERE & Paolo MELINDI GHIDI, 2013. "Voluntary Pooled Public Knowledge Goods and Coalition Formation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. Mario Biggeri & Jean-Francois Trani & Parul Bakhshi, 2009. "Le teorie della Disabilità: una Reinterpretazione Attraverso l'Approccio delle Capability Amartya Sen," Working Papers - Economics wp2009_04.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    6. Atkinson, A.B., 2009. "Giving overseas and public policy," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 647-653, June.
    7. Sonntag, Diana, 2012. "Rethinking aid for AIDS A public good approach," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62080, Verein für Socialpolitik / German Economic Association.

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