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Global Public Goods. By Margret Thalwitz, Director, Global Programs & Partnerships (GPP). Slide 1: What are Global Public Goods?. Global Public Goods are commodities, services or resources with shared benefits. They possess two characteristics:

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Presentation Transcript
global public goods

Global Public Goods

By Margret Thalwitz,

Director, Global Programs & Partnerships (GPP)

slide 1 what are global public goods
Slide 1: What are Global Public Goods?
  • Global Public Goods are commodities, services or resources with shared benefits. They possess two characteristics:
    • They produce benefits that are impossible to prevent everyone from enjoying
    • Consumption by one individual does not detract from that of another.

An example of a global public good is clean air.

Source: Development Committee Paper “Poverty reduction and Global Public Goods”, September 2000

slide 2 what are global public goods
Slide 2: What are Global Public Goods?
  • International public goods, global and regional, address issues that:
    • are deemed to be important to the international community, to both developed and developing countries; 
    • typically cannot, or will not, be adequately addressed by individual countries or entities acting alone, and, in such cases;
    • are best addressed collectively on a multilateral basis.

Source: International Task Force on GPGs

slide 3 why do we need to care
Slide 3: Why do we need to care?

It’s about “Globalization”.

Note: Adapted from Global Public Goods: International Cooperation in the 21st Century, Ed. Inge Kaul et al.

slide 4 gpgs are under delivered
Slide 4: GPGs are under-delivered
  • Institutional arrangements are unclear;
  • Cross-border externalities can discourage provision of GPGs;
  • Policy making is typically at national level; International cooperation is difficult to negotiate and implement.
slide 5 institutions delivering gpgs
Slide 5: Institutions delivering GPGs
  • Countries
  • The United Nations
  • Multilateral development agencies, including the World Bank
  • Regional Institutions
slide 6 financing for gpgs
Slide 6: Financing for GPGs
  • Cross-border spillovers can create a financing gap;
  • To shore up GPG financing, part of Official Development Assistance (ODA) is committed to GPGs (up to 25% by some estimates);
  • In key areas, rich nations finance provision of GPGs
    • E.g. Global Fund to Fight Aids, TB, and Malaria and Global Environment Fund
  • However, concerns are raised about resources flowing from activities reserved for poor countries to activities that benefit all countries including rich ones.
slide 7 international cooperation
Slide 7: International Cooperation
  • State-centric policy making and GPG deficit necessitate international cooperation;
  • Cooperation can be in the form of international laws, agreements, and protocols;
  • Such cooperation can be difficult to obtain and its objectives even harder to implement.
slide 8 conclusion
Slide 8: Conclusion
  • Global Public Goods are important to all of us;
  • They are currently under-delivered;
  • A GPG deficit can have serious consequences;
  • There are legitimate reasons why such a deficit exists;
  • International cooperation with a focus on appropriate resource allocation and institutional arrangements will be critical.