Abstract
This article focuses on the provision prognosis for regional public goods (RPGs) and the role of international organizations in fostering supply in developing countries. All three properties of publicness—i.e., nonrivalry of benefits, nonexcludability of nonpayers, and the aggregation technology—play a role in this prognosis. The paper highlights many provision impediments, not faced by national or global public goods. When intervention is necessary, the analysis distinguishes the role of global, regional, and other institutional arrangements (e.g., networks and public-private partnerships). The pros and cons of subsidiarity are addressed.
Keywords: regional public goods, global public goods, subsidiarity, aggregation technology, collective action, networks, developing countries
Footnotes
JEL codes
H87 · O18 · R58
References
- Arce M. D. G. A selective survey of regional public goods in Latin America. In: Estevadeordal A., Frantz B., Ngyuyen T. R., editors. Regional public goods: From theory to practice. Washington, DC: Inter-American Development Bank and Asian Development Bank; 2004. pp. 105–129. [Google Scholar]
- Arce M. D. G., Sandler T. Transnational public goods: Strategies and institutions. European Journal of Political Economy. 2001;17:493–516. [Google Scholar]
- Arce M. D. G., Sandler T. Regional public goods: Typologies, provision, financing, and development assistance. Stockholm: Almqvist and Wiksell International for Expert Group on Development Issues, Swedish Ministry for Foreign Affairs; 2002. [Google Scholar]
- Barrett S. A. Supplying international public goods: How nations can cooperate. In: Ferroni M., Mody A., editors. International public goods: Incentives, measurement, and financing. Boston: Kluwer Academic Publishers; 2002. pp. 46–79. [Google Scholar]
- Collier P., Elliot V. K., Hegre H., Hoeffler A., Reynal–Querol M., Sambanis N. Breaking the conflict trap: Civil war and development policy. Washington, DC: World Bank and Oxford University Press; 2003. [Google Scholar]
- Cook L. D., Sachs J. Regional public goods in international assistance. In: Kaul I., Grunberg I., Stern M., editors. Global public goods: International cooperation in the 21st century. New York: Oxford University Press; 1999. pp. 436–449. [Google Scholar]
- Cornes R., Sandler T. The theory of externalities, public goods, and club goods. 2. Cambridge: Cambridge University Press; 1996. [Google Scholar]
- Enders, W., & Sandler, T. (2005). Distribution of transnational terrorism among countries by income classes and geography after 9/11. Los Angeles: School of International Relations, University of Southern California, Unpublished manuscript.
- Enders W., Sandler T. The political economy of terrorism. Cambridge: Cambridge University Press; 2006. [Google Scholar]
- Estevadeordal, A., Frantz, B., & Nguyen, T. R. (Eds.) (2004). Regional public goods: From theory to practice. Washington, DC: Inter–American Development Bank and Asian Development Bank.
- Ferroni, M., & Mody, A. (Eds.) (2002). International public goods: Incentives, measurement, and financing. Boston: Kluwer Academic Publishers.
- Kanbur R., Sandler T., Morrison K. The future of development assistance: Common pools and international public goods. Washington, DC: Overseas Development Council; 1999. [Google Scholar]
- Kaul, I., Grunberg, I., & Stern, M. A. (Eds.) (1999). Global public goods: International cooperation in the 21st century. Oxford University Press, New York.
- Kaul, I., Conceição, P., Le Goulven, K., & Mendoza, R. U. (Eds.) (2003). Providing global public goods: Managing globalization. New York: Oxford University Press.
- Kremer M., Leino J. Regional public goods and health in Latin America. In: Estevadeordal A., Frantz B., Nguyen T. R., editors. Regional public goods: From theory to practice. Washington, DC: Inter-American Development Bank and Asian Development Bank; 2004. pp. 227–241. [Google Scholar]
- Mansfield E. D., Milner H. V. The new wave of regionalism. International Organization. 1999;53:589–627. doi: 10.1162/002081899551002. [DOI] [Google Scholar]
- Mascarenhas R., Sandler T. Donors' mechanisms for financing international and national public goods: Loans or grants? World Economy. 2005;28:1095–1117. [Google Scholar]
- Murdoch J. C., Sandler T. Civil wars and economic growth: Spatial dispersion. American Journal of Political Science. 2004;48:137–150. doi: 10.1111/j.0092-5853.2004.00061.x. [DOI] [Google Scholar]
- North D.C. Institutions, institutional change and economic performance. Cambridge: Cambridge University Press; 1990. [Google Scholar]
- Olson M. The logic of collective action. Cambridge, MA: Harvard University Press; 1965. [Google Scholar]
- Olson M. The principle of ‘fiscal equivalence’: The division of responsibilities among different levels of government. American Economic Review. 1969;59:479–487. [Google Scholar]
- Raffer, K. (1999). ODA and global public goods: A trend analysis of past and present spending patterns. NY: Office of Development Studies Background Paper, United Nations Development Program.
- Sandler T. Collective action: Theory and applications. Ann Arbor, MI: University of Michigan Press; 1992. [Google Scholar]
- Sandler T. Global Challenges. Cambridge: Cambridge University Press; 1997. [Google Scholar]
- Sandler T. Global and regional public goods: A prognosis for collective action. Fiscal Studies. 1998;19:221–247. doi: 10.1111/j.1475-5890.1998.tb00286.x. [DOI] [Google Scholar]
- Sandler T. Financing international public goods. In: Ferroni M., Mody A., editors. International public goods: Incentives, measurement, and financing. Boston: Kluwer Academic Publishers; 2002. pp. 81–117. [Google Scholar]
- Sandler T. Assessing the optimal provision of public goods: In search of the Holy Grail. In: Kaul I., Conceição P., Le Goulven K., Mendoza R. U., editors. Providing global public goods: Managing globalization. New York: Oxford University Press; 2003. pp. 131–151. [Google Scholar]
- Sandler T. Global collective action. Cambridge: Cambridge University Press; 2004. [Google Scholar]
- Sandler T., Enders W. An economic perspective on transnational terrorism. European Journal of Political Economy. 2004;20:301–316. doi: 10.1016/j.ejpoleco.2003.12.007. [DOI] [Google Scholar]
- Stålgren, P. (2000). Regional public goods and the future of international development cooperation: A review of the literature. Working Paper 2000:2, Stockholm, Sweden: Expert Group on Development Issues, Ministry for Foreign Affairs.
- te Velde D. W., Morrissey O., Hewitt A. Allocating aid to international public goods. In: Ferroni M., Mody A., editors. International public goods: Incentives, measurement and financing. Boston: Kluwer Academic Publishers; 2002. pp. 119–156. [Google Scholar]
- Vicary S., Sandler T. Weakest-link public goods: Giving in-kind or transferring money. European Economic Review. 2002;46:1501–1520. doi: 10.1016/S0014-2921(01)00103-9. [DOI] [Google Scholar]
- World Bank . Global development finance: Building coalitions for effective development finance. Washington, DC: World Bank; 2001. [Google Scholar]
- World Health Organization (WHO) Coordinates 2002: Charting progress against aids, tb and malaria. Geneva: WHO; 2002. [Google Scholar]