On Financing Global and International Public Goods
Three dimensions of public goods--nonrivalry of benefits, the possibility of being excluded from benefits, and the technology for aggregating public supply--determine what kinds of institutions and transnational actions are required for their provi...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/07/1552020/financing-global-international-public-goods http://hdl.handle.net/10986/19577 |
| Summary: | Three dimensions of public
goods--nonrivalry of benefits, the possibility of being
excluded from benefits, and the technology for aggregating
public supply--determine what kinds of institutions and
transnational actions are required for their provision and
financing. For some public goods--especially for those for
which the exclusion of nonpayers is not feasible--these
properties are such that a public sector push is needed or
the good will not be financed. This push can come from a
supranational structure (such as the World Bank, the United
Nations, or the European Union) that directly or indirectly
collects the requisite fees from its members to underwrite
international public goods (IPGs). To understand the role of
international institutions in promoting IPGs, one must
ascertain the nature of the good and whether it requires a
push, a coax, or no assistance from a supranational
structure or influential nation(s) and agents (such as
charitable foundations). The transnational community should
explicitly direct scarce resources only to those global and
international public goods that need either a significant
push or only a smaller coax by the transnational community.
When clubs or markets can finance international public
goods, the community should sit back and let incentives
guide the actions of sovereign nations. |
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