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Action for Economic Reforms

PROBLEMS OF GOVERNANCE IN THE PROVISION OF GLOBAL PUBLIC GOODS

This paper was presented at the Manitese conference titled "From

Utopia's Skies to History's Dust: Building solidarity and justice in

the world," Firenze, 20-22 April 2002.


Through concrete examples of threats to peace, health and economies,

this paper illustrates the failure in the provision and management of

public goods. It then proceeds to surface some of the critical issues

and challenges in addressing the provision of global public goods.

Finally, it presents a rough sketch of an alternative to global

governance.


At first glance, the provision of global public goods should be a

non-contentious issue. It is in fact a popular issue that attracts a

huge sum of financial resources, especially official development

assistance (ODA). The World Bank (2001) estimates that in the

mid-1990s, close to 30 percent of total ODA (or US$16 billion of total

ODA amounting to US$55 billion) was allocated to global public goods.


The provision of global public goods transcends conflicts relating to

nation, class, gender, race, and religion—at least on an abstract

level. It likewise has an inter-temporal character. A global public

good has "benefits that are strongly universal in terms of countries

(covering more than one group of countries), people (accruing to

several, preferably all, population groups) and generations (extending

to both current and future generations without foreclosing development

options for future generations)."


The concept of global public goods is actually an extension of the

definition of national public goods. Public goods have the following

principal attributes:


  • Non-rivalry in consumption: The use or consumption of one good by a person or a group of persons does not prevent other persons or group of persons from using or consuming such

  • Non-excludable: The consumption of one good by a person or a group of persons cannot restrict or exclude others from obtaining the good's benefits.

  • Non-rejectable: Any person or group of persons cannot abstain from using the good.


Examples of global public goods abound: reduction of pollution,

prevention of communicable diseases, food security, peace, financial

stability, travel safety, and international communications. The

universal benefits of such examples of global goods are indisputable.


Policy makers or policy movers of all stripes—conservative, liberal and

radical—will not resist the vaccination of peoples to control the

spread of HIV/AIDS, malaria, polio and tuberculosis. They will not object to the

reduction of gas emissions. They will not hinder the prevention of

famine and starvation. They will not oppose the taming of the

volatility of financial capital and the strengthening of the financial

architecture. Everyone—the poor and the well-off people as well as the

highly developed and the least developing countries—stands to benefit

from the


The provision of a global public good can also reconcile social or

collective goals with self-interest. Take for example a private

environmental firm that is involved in the reduction of gas emissions

or a pharmaceutical company that manufactures vaccine. The company

expands its output and its market and thereby increases its profits at

the same time that it serves the public good.


In other words, we can cite good arguments that bolster the proposition

that the provision of global public goods is non-contentious. Yet, the

concept of global public goods does not exist in a vacuum. Power

relations, geopolitics, financial constraints, coordination failure,

rigid paradigms, monopolies (economic and political), and plain hubris,

inter alia, have adverse effects on the provision of global public

goods.


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