GLOBAL PUBLIC GOODS INTERNATIONAL COOPERATION IN THE 21ST CENTURY “It is not beyond the powers of political volition to tip the scales towards more secure peace, greater economic well-being, social justice and environmental sustainability But no country can achieve these global public goods on its own, and neither can the global marketplace Thus our efforts must now focus on the missing term of the equation: global public goods” Kofi Annan Secretary-General of the United Nations New York March 1999 GLOBAL PUBLIC GOODS INTERNATIONAL COOPERATION IN THE 21ST CENTURY EDITED BY INGE KAUL ISABELLE GRUNBERG MARC A STERN T HE U NITED P UBLISHED FOR N ATIONS D EVELOPMENT P ROGRAMME (UNDP) N EW Y ORK O XFORD O XFORD U NIVERSITY P RESS 1999 Oxford University Press Oxford New York Athens Auckland Bangkok Bombay Calcutta Cape Town Dar es Salaam Delhi Florence Hong Kong Istanbul Karachi Kuala Lumpur Madras Madrid Melbourne Mexico City Nairobi Paris Singapore Taipei Tokyo Toronto and associated companies in Berlin Ibadan Copyright © 1999 by the United Nations Development Programme UN Plaza, New York, New York, 10017, USA Published by Oxford University Press, Inc 198 Madison Avenue, New York, New York, 10016 Oxford is a registered trademark of Oxford University Press All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Oxford University Press Library of Congress Cataloging-in-Publication Data Kaul, Inge Global public goods: international cooperation in the 21st century/ edited by Inge Kaul, Isabelle Grunberg, Marc A Stern p cm Includes bibliographical references and index ISBN 0-19-513051-0 (cloth) — ISBN 0-19-513052-9 (paper) Public goods International cooperation I Kaul, Inge II Grunberg, Isabelle III Stern, Marc A HB846.5.G55 1999 363—DC21 99-10940 CIP Rev Cover and design: Gerald Quinn, Quinn Information Design, Cabin John, Maryland Editing and production management: Communications Development Incorporated, Washington, D.C “With the publication of this volume, UNDP has again proved to be a leading intellectual agency, as well as an important operational body” Kazuo Takahashi Director International Development Research Institute Tokyo “This volume introduces a framework for facilitating and reinforcing international development through an equal partnership model of cooperation I find it enlightening, and hopefully reflective of the changing values of this era” Ismail Razali Chairman Central Bank of Malaysia “This book embarks into new dimensions of thinking.” Klaus Schwab President World Economic Forum, Davos “We need better international cooperation to ensure that human beings have full access to necessary public goods This volume is an invaluable tool to bring this goal closer” Paul Kennedy Yale University “How can self-interest be harnessed for the public good? This volume will prove useful to anyone interested in answering that question” Jose Goldemberg Former Minister of the Environment, Brazil “At a time when many are saying that globalization has gone too far, UNDP has produced a wide and deep study of global public goods The volume deals with peace and trade, but also with global warming, transnational pollution, disease and financial crises—all public bads—and their suppression, which constitutes a good The subject is complex but of paramount importance to a world experiencing, or approaching, multidimensional crises” Charles Kindleberger Massachusetts Institute of Technology “This volume is bound to be an important reference for future work and public debate” Ralph C Bryant The Brookings Institution “This is an important piece of work on one of the most interesting and urgent problems of our time An increasing number of issues, including those of the developing world, are an international responsibility This volume does a distinctively important service by drawing this fact to our attention I admire the effort that has gone into it I particularly endorse the result” John Kenneth Galbraith Harvard University “The concept of public good offers a useful analytical framework for the continuing debate over the usefulness of aid because, among other things, of its focus on the mutuality of benefits In particular, regional public goods must be a critical part of the strategy for Africa’s growth and development and for improving Africa’s competitiveness” Kwesi Botchwey Former Minister of Finance, Ghana C ONTENTS P ROLO GUE x Tommy Koh F OREWORD xii James Gustave Speth A CKNOWLED GEMENTS xv C ONTRIBUTORS xv ii I NTRODUCTION xix Inge Kaul, Isabelle Grunberg and Marc A Stern CONCEPTS D EFINING G LOBAL P UBLIC G OODS Inge Kaul, Isabelle Grunberg and Marc A Stern I NTERGENERATIONAL P UBLIC G OODS : S TRATEGIES , E FFICIENCY AND I NSTITUTIONS Todd Sandler T HE P OLITICAL E CONOMY Lisa L Martin OF I NTERNATIONAL C OOPERATION CASE STUDIES E QUIT Y AND 20 51 65 J USTICE 66 E QUITY IN A G LOBAL P UBLIC G OODS F RAMEWORK J Mohan Rao D ISTRIBUTIVE J USTICE A S AN I NTERNATIONAL P UBLIC G OOD : A H ISTORICAL P ERSPECTIVE Ethan B Kapstein G LOBAL J USTICE : B EYOND I NTERNATIONAL E QUITY Amartya Sen vii 68 88 116 GLOBAL PUBLIC GOODS M ARKET E FFICIENCY 126 D EEP I NTEGRATION AND T RADE A GREEMENTS : G OOD FOR D EVELOPING C OUNTRIES ? Nancy Birdsall and Robert Z Lawrence I NTERNATIONAL F INANCIAL I NSTABILITY Charles Wyplosz E NVIRONMENT AND 152 C ULTURAL H ERITAGE M ONTREAL VERSUS K YOTO : I NTERNATIONAL C OOPERATION Scott Barrett AND THE 128 G LOBAL E NVIRONMENT 190 192 N EW S TRATEGIES FOR THE P ROVISION OF G LOBAL P UBLIC G OODS : L EARNING FROM I NTERNATIONAL E NVIRONMENTAL C HALLENGES Geoffrey Heal 220 C ULTURAL H ERITAGE A S P UBLIC G OOD : E CONOMIC A NALYSIS A PPLIED TO H ISTORIC C ITIES Ismail Serageldin 240 H EALTH 264 G LOBAL E PIDEMIOLOGICAL S URVEILLANCE : I NTERNATIONAL C OOPERATION TO M ONITOR I NFECTIOUS D ISEASES Mark W Zacher H EALTH A S A G LOBAL P UBLIC G OOD Lincoln C Chen, Tim G Evans and Richard A Cash K NOWLED GE AND K NOWLEDGE A S Joseph E Stiglitz I NFORMATION A T HE P UBLIC F ACE Debora L Spar OF FOR A 284 306 G LOBAL P UBLIC G OOD G LOBAL C OMMUNICATIONS J Habib Sy 266 M ORE E QUITABLE W ORLD C YBERSPACE 308 326 344 viii CONTENTS P EACE AND S ECURIT Y 364 P REVENTING D EADLY C ONFLICT : F ROM G LOBAL H OUSEKEEPING TO N EIGHBOURHOOD W ATCH David A Hamburg and Jane E Holl P EACE A S A G LOBAL P UBLIC G OOD Ruben P Mendez 366 382 POLICY IMPLICATIONS 417 I NTERNATIONAL P UBLIC G OODS AND Rajshri Jayaraman and Ravi Kanbur THE C ASE FOR F OREIGN A ID R EGIONAL P UBLIC G OODS IN I NTERNATIONAL A SSISTANCE Lisa D Cook and Jeffrey Sachs 418 436 C ONCLUSION G LOBAL P UBLIC G OODS : C ONCEPTS , P OLICIES Inge Kaul, Isabelle Grunberg and Marc A Stern AND S TRATEGIES 450 G LOSSARY 509 F URTHER R EADING 512 Compiled by Priya Gajraj A B OUT THE C ONTRIBUTORS 517 I NDEX 527 ix P ROLOGUE I am very pleased to write the prologue to this important volume I consider this an important book for three reasons First, I believe that the book breaks new ground by extrapolating the concept of “public goods” from the national level to the global level The book makes a convincing argument that the two tests of a public good, nonrivalry and nonexcludability, can be applied at the global level to such things as environment, health, culture and peace In particular, I am persuaded that financial stability, the Internet and knowledge can be considered as global public goods Second, I agree with the book’s thesis that we live in an increasingly integrated and interlinked world In this new world, the sovereignty of the state is changing owing to two opposing developments On the one hand, states are forced to cooperate in order to solve their problems This applies to the environment, health, peace, knowledge and, as we have witnessed recently, financial stability On the other hand, the trend is towards subsidiarity or the principle of devolving the power of decision-making to the lowest possible level Third, I think the book makes a persuasive argument for the need to rethink the nature of international assistance It is no longer enough to target international assistance at recipient countries or at specific sectors The reason is that some global public goods cut across several sectors How we finance global public goods? Are existing institutions adequate? If not, how should they be reformed? Do we need new institutions? How we incorporate into our institutions the ethos of tripartism: government, business and civil society? This book seeks to answer these and many other important policy questions It provides us with a new intellectual framework with which to think about international assistance It also offers a powerful new argument for x INDEX profile, 468–71; market failure, 459; nonexcludability as form of, 458; positive and negative, 6; public bads from negative, 156–57; of public goods, xx–xxi; as spillovers, Externality profiles, national, 467–71 growth, 319; ethical and moral justification for, 452; model of interaction between two countries related to, 420–25; official development assistance (ODA), xiii, xxxiii, 493–98; provided for regional public goods, 443–46; recommended effective, 112; role in conflict prevention, 374; scepticism about efficacy of, 418–19; technical and financial for developing countries, 148; from United States, 98–99; using international public goods as rationale for, 419–20, 428–30 Foreign direct investment, 317 Frankel, Jeffrey, 167 Free riders: avoidance of, 490–91; in consumption of public goods, 6–7, 223, 383; definition of, 509; deterrence in Montreal and Kyoto Protocols, 209–13; provisions in Kyoto and Montreal Protocols related to, 211–213 See also Leakage Free trade: different postwar views of, 97–98; distributive consequences, 93; influence of postwar international, 97 Free Trade Area of the Americas, proposed, 138 Frenk, Julio, 289, 295, 420 Frezza, Bill, 353 Fairness: with plural affiliation, 120–23; in Rawlsian framework, 116–17, 119 See also Original position (Rawls); Particularism, national (Rawls); Universalism, grand Fearon, James D., 55, 56 Fidler, David P., 271, 272, 273, 274, 275, 280 Financial sector: burden-smoothing in crisis, 180–81; developing countries adopting reform of, 136; mechanisms to promote stability, 163–69; proposals for prevention of instability in, 167–69; public bads from negative externalities in, 156–57; recommended adjustment of IMF role in, 177–79 See also Markets, financial Financial sector, international: crisis management, 169–75; idea of capital controls for, 108; postwar capital mobility and integration, 101, 103; proposed cooperation in, 108; recommendation for supervision of, 107–9; stability as public good, xx Fine, Sidney, 91 Fletcher, Matthew, 355 Fluendy, Simon, 355 FluNet, 278 Foley, Duncan K., 225 Foreign aid: choosing aid or contribution to public goods, 425–30; effect on countries’ economic Gajraj, Priya, 519 Galbraith, John Kenneth, vi Gallup, John L., 441 Game theory: countries’ strategic interactions, 236; repeated, 53 See also Prisoner’s dilemma Gandy, Oscar H., Jr., 327, 328 Gardner, Richard, 97 Garod, Guy, 248 Garrett, Geoffrey, 56 533 GLOBAL PUBLIC GOODS Garrett, Laurie, 268, 273 General Agreement on Tariffs and Trade (GATT): Generalized System of Preferences, 99–100, 130; original shallow integration perspective, 131; postwar labour policy of, 105; special treatment of developing countries under, 130; Uruguay Round treatment of developing countries, 72, 133 Generalized System of Preferences, 99–100, 130 Gilbert, Frank, 243 Gilpin, Robert G., xxiii Gladden, Washington, 91 Globalization: convergence on basic issues with, 294; of the Internet, 346–47; private markets with, 293; response to, 72 Global Participation Fund, proposed, xxxiv Global public goods, See Public goods, global Global Public Health Information Network, Canada, 277 Global Trusteeship Council, proposed, xxxvi, 451, 482, 485 Godlee, Fiona, 295 Goldemberg, Jose, v Goldstein, Judith, 54 Goodman, Neville, 270, 271, 272 Governments: avoiding Prisoner’s dilemma, 482; elements for internal stability, 375–76; financing of defence expenditures, 384; financing of public goods, 383; in NGO movements, 480; responsibility for citizens acting across borders, xxvii; responsibility for preventive action, 368; role in ensure economic opportunity, 373–74; role in prevention of deadly conflict, 368, 370–71; role in provision of pub- lic goods, 311–16; role in transfer of knowledge, 317; strategies for cyberspace intervention, 356–57 Greenhouse gases See Climate change Group of Seven (G7) nations, 165 Group of Eight (G–8) nations: proposal to expand to G–16, 452, 480 Group of Ten (G–10) nations: Rey Report, 179–80 Grunberg, Isabelle, 519 Gulick, Edward Vose, 390 Gwin, Catherine, 295, 419 Haas, Peter, 60, 464 Hafkin, Nancy, 332 Haines, Andrew, 288 Hamburg, David, 519 Hamelink, Cees J., 329, 332 Hansen, Alvin, 94, 96 Hardin, Garrett, xxiii, 5, Hardin, Russell, Harmonization: benefits for developing countries, 143; effect of, 129, 135; as part of deep integration, 131–32, 147 Harrison, Babatunda, 339 Hart, Michael, 145 Hartley, Keith, 385 Hawkins, Mike, 90 Hayek, Friedrich A., 92 Heal, Geoffrey, 139, 222, 225, 230, 236, 460, 520 Health: core and support functions, 295–97; with global change, 285–89; as global public good, 289, 299; inequities in global, 292; International Health Regulations, 272, 279–80, 284; network of professionals, 278; objectives and functions of organizations related to, 295–97; 534 INDEX opportunities for global, 293–94; private markets in health care, 293; proposed reforms for global governance, 294–301; role of Internet in reporting international, 276–77; role of journalists in reporting international, 278; Royal Society for Hygiene and Tropical Medicine, 278; surveillance of international, 266–73, 292 See also World Health Organization (WHO) Health, public: global, 61–62, 110–11; Global Public Health Information Network, 277; as problem in developing countries, 440–41; as regional public good, 438, 440 Health assistance programmes, 269 Hegemony: benevolent hegemony theory, 391–92; decline of U.S economic, 71; effect of, 392 Helleiner, G K., 336–37 Helliwell, John, 481 Hill, Emily, 488 Hirschman, Albert O., 77 Hirshleifer, Jack, 425, 486 Hirst, Paul, 462 Hobbes, Thomas, 73 Hobson, William, 266 Hoel, Michael, 215 Holl, Jane, 520 Howard-Jones, Norman, 266, 270, 271 Hsieh, David, 355 Hulett, Joe R., Human Rights Watch, 463, 498n1 Hume, David, 3, Huntington, Samuel P., 463 Hyman, David, 384 Inequality: international, 71–73; in provision of public goods, 79–82 Information: asymmetric, 158–60, 172–73; benefits of better, 168; conveyed by the Internet, 357–59; Global Public Health Information Network, 277; for international cooperation, 51–59; problem of incomplete, 59; provided by international institutions and organizations, 51–59; provided by NGOs and epistemic communities, 59–62; provided by ProMed-mail, 276–77; as public good, 294, 326–29; role in international cooperation, 57–59; unequal access to, 329–33; WHO gathering of, 279–80 See also Diseases, infectious; Health; Knowledge Institute of Virology, Johannesburg, 275 Institutions: information provision by, 268; with intergenerational perspective 43, 42-; proposals for reform of current, xxx–xxxi; proposed reorganization of existing, xxviii–xxix See also Clubs Institutions, international: acting on delegated authority, 52–53; oversight of financial sector, 165–69; proposals for new, 451; role in shaping economic outcomes, 102–3; role of, 54–59 See also Specific institutions by name Integration: definition of shallow, 130–31; effect of global, 68 Integration, deep: among developed countries, 131–33; benefits and risks for developing countries, 135–45; costs and benefits of, 129–33; between developed and developing countries, 133; effect Incentive gap: closing, xxvi, xxxii–xxxiv, 485–93 535 GLOBAL PUBLIC GOODS of complex trade agreements on, 128 Inter-American Development Bank, 445–46 Interdependence theory, 100–01 Interest groups: domestic response to deeper trade agreements, 148 Intergenerational Pareto Efficiency (IPE), 28 Intergovernmental Panel on Climate Change (IPCC), 196 International AIDS Vaccine Initiative, 300 International Labour Organization (ILO): labour standards of, 106, 143; postwar labour policy, 105 International Monetary Fund (IMF): information held by, 168; loans and conditionality, 171–73; proposals for role in crisis management, 169–70; recommendation for adjusted role of, 177; recommendation for conditional lending of, 109–10; role and purpose of, 103, 165, 168, 182–83; role for flexible exchange rates, 176; role in Asian financial crisis, 182; size of loan packages, 174 International Organization of Securities Commissions (IOSCO), 165–66 International regimes: as public goods, 13–14 International Sanitary Convention (1903), 266, 269, 270–71 International Accounting Standards Committee (IASC), 165–66 Internet: Africa’s limited participation, 330–31; argument against public good status of, 351–53; attempts to regulate, 353–59; factors causing underuse, 453; as global public good, xxix; nonrivalry and nonexcludability of, 348–49; origins and development of, 345–48; ProMed-mail, 276–77; as public good, 344–51; role in sharing of knowledge, 318; WHO Rumor Outbreak Page, 269, 277 Investment: global competition, 134; information and communications technologies as, 327 IPE See Intergenerational Pareto Efficiency Israel, Fred, 91, 96, 113 Jakobsson, Kristin, 248 Jamison, Dean T., 289, 295, 420 Jayaraman, Rajshri, 281, 426, 520 Jensen, Michael, 329 Jervis, Robert, 4, 390 John, A Andrew, 20, 42 Jonquieres, Guy de, 355 Jurisdictional gap: closing, xxvi–xxix, 466–78 Justice: concepts of global, 117–21; domain of international, 119–20; as factor in conflict prevention, 367, 375–76; as fairness (Rawls), 116–17, 119, 485; global distributive, 99–102; ideas of, 116; linked to equality, 78; principles of (Rawls), 117; social justice as public good, 113; states’ efforts to promote, 375–76 See also Social justice Kagan, Donald, 404 Kahler, Miles, 488 Kahn, James, 248 Kanbur, Ravi, 281, 426, 520–21 Kant, Immanuel, 119 Kaplan, Robert D., 463 Kapstein, Ethan, 57, 107, 108, 459, 521 Katz, Michael L., 312 Kaul, Inge, 521 536 INDEX Keck, Margaret E., 60 Kehoe, Louise, 355 Keller, William W., 384 Kellogg, Edmund, 243 Kennedy, Paul, v, 488 Keohane, Robert, xxiii, 13, 51, 53, 54–55, 268, 462 Keynes, John Maynard, 77, 90, 91 Kimber, Richard, Kindleberger, Charles, vi, xxiii, 9, 12, 75, 153, 388 King, Edmund, 78–79 Kingsbury, 461 Knaul, Felicia, 289, 295, 420 Knight, W Andy, 474 Knowledge: about world’s health, 268–69; combining local and global, 317–18; excludable, 309–10; fundamental unpatentable, 318–20; as global public good, 308, 310–11; government role in transfer of, 317; from international health surveillance, 267–69; intra-country dissemination, 317–18; methods of transfer to less-developed countries, 317–18; nonrivalrous and nonexcludable, 309–10; in proposed international intellectual property regime, 316–17; as public good, 294, 308; of world’s health is nonrivalrous in consumption and nonexcludable, 268–69 Knowledge bank, proposed, 484 Koivusala, Meri, 281 Korten, David C., 481 Krasner, Steven D., xxiii, 13, 54, 55, 56 Krause, Keith, 474 Krautkraemer, Jeffrey, 44 Kristrom, Bengt, 231 Krugman, Paul, 135, 161, 167 Kull, Steven, 298 Kyoto Protocol, 192, 197, 473, 475; compared to Montreal Protocol, 206–16; proposed Clean Development Mechanism, 489, 492–93 Labour standards: effect of requirement for developing country to adopt, 140–45; growing demand for equalization of, 71; incentives for countries’ improvement of, 106; recommendation to link multinational codes of conduct to, 107; recommendation to link trade liberalization with, 105–7; worker compensation programmes linked to trade liberalization, 105–7 Laissez-faire economics, 90–92 Lalman, David, 370 Lapin, Todd, 354 Law enforcement: as regional public good, 440 Law of peoples (Rawls), 119–20, 122 Law of the Sea: property rights, 226 Lawrence, Mark, 349 Lawrence, Robert, 460, 521–22 League of Nations Health Organization, 266, 270 Leakage: limits in Kyoto and Montreal Protocols to, 215; Montreal and Kyoto Protocols, 207–10; in ozone depletion reduction scenarios, 202 Learning by doing, 319 Lederberg, Joshua, 268, 273, 284, 288 Lee, Kelley, 295 Leive, David M., 271, 272 Levy, Steven, 354 Lewis, Peter H., 352 Liberty (Rawls), 117 Lichfield, Nathaniel, 243 537 GLOBAL PUBLIC GOODS Living standards: convergence in industrial counties of, 71; as universal human right, 373 Lodge, George C., 346 Loomis, John, Lopez, Alan, 292 Lucas, Adetokunbo, 295 Lumsdaine, David H., 92 Lynn-Jones, Sean M., 370 cient and deep, 164; liberalization effects, 175–76; moral hazard and adverse selection in, 158, 177; regulation and stabilization as regional public good, 438–40; self-fulfilling exchange-rate crises, 161–63, 180 Marshall Plan, 378, 447, 496 Martin, Lisa, 54, 522 Mathews, Jessica T., 295, 463 Mayer, Peter, xxiii Mead, Walter, Meier, Gerald, 98 Mendez, Ruben P., xxiii, 4, 388–89, 405, 522 Metcalfe, Bob, 352 Milesi-Ferretti, Gianmaria, 167 Mill, John Stuart, 102, 119 Miller, Steven E., 370 Milleron, Jean-Claude, Mixed good, 510 Monetary funds, regional, 182–84 Montreal Protocol: adoption of and participation in, xxxii, 195–96; compared to Kyoto Protocol, 206–16; cooperation on ozone layer protection in, 192–93, 200–202; Global Environment Facility under, xxxii–xxxiii, 253–54, 492; Implementation Committee, 213–14; Multilateral Development Fund under, xxxii, 492; requirements and amendments (1990, 1992) of, 195, 197; Substances that Deplete the Ozone Layer, 235 Moral hazard: avoidance of, 163; definition of, 510; in financial markets, 158; geopolitical implications of, 160; in global financial markets, 177; in insurance markets, 158–59; of private lenders to developing countries, 179–81; in proposed world finan- McDermott, Darren, 355 Machlup, Fritz, 327 McMichael, Anthony J., 288 McNeill, William H., 266, 284 Mäler, Karl-Göran, Malinvaud, Edmond, Mankiw, N Gregory, 384 Manning, Anita, 276 Mansfield, Edward, 384 Market failures: conditions for, 157–61; definition of, 510; effect of intervention in, 160–61; origin of financial instability in, 184; policy responses to, 385–87; from self-interest at national and international levels, 385–88; supranational structure to correct, 40–42 Markets: competing in foreign, 132–35; competition for global, 81–82; efficiency of allocation in, 227–29; externalities causing failure of, 459; forces to improve provision of public goods, xxxiii; in integration of world economy, 293; performance with public and private goods, 227–29; for pollution rights, 225–26; private health care, 292–93; reliance on public goods, xix–xx Markets, financial: asset price volatility, 153–54; conditions for market failure, 157–61; crises in, 153–55; effect of capital flow mobility, 156–57; effect of effi- 538 INDEX cial organization, 180–81; in public sector with financial crisis, 171 Morris, Stephen, 419 Morrow, James, 57 Mosco, Vincent, 326, 334 Multi-Fibre Arrangement, 130 Multinational companies: in communications industry, 332–33; interest in UN Conference on Environment and Development (1992), 481; recommendation to supervise, 107–9 Murdoch, James C., 26 Murray, Christopher J L., 292 Murray, James, 96 Myrdal, Gunnar, 98 affairs, 296; as conduits for ideas, financing, and technical assistance, 369; expanding role of, 480; information provided by, 59–62; providing global public goods, 480; role in conflict prevention, 369; scrutiny of nonstate actors by, 463 Nonrivalry: of club goods, 5, 23; of defence, 383–84; of the Internet, 348–49; of knowledge, 268–69, 309–10; knowledge of world’s health, 268–69; of public goods consumption, 2–4, 308–9, 311, 383–84 Nordhaus, William, 202–6, 384 Norms: to achieve and sustain cooperation, 82–84; of European Union (EU), 136; for international regulation and supervision, 169; universal, 453 North American Free Trade Agreement (NAFTA), 129, 133, 137, 141 North Atlantic Treaty Organization (NATO), 401 North-South dialogue: communication gaps in, 332; distribution of private and public goods in, 229; need for equitable representation from, 479–80 Noumba-Um, Paul, 331 Nye, Joseph, 462 Nakajima, Hiroshi, 288–89 Nash equilibrium, 30–38 Nayyar-Stone, Ritu, 244 Ndegwa, Stephen N., 463 Negotiations: to achieve deeper integration, 147-48; intergovernmental, 15; related to Montreal and Kyoto Protocols, 194–200; two levels of international, 147 Negroponte, Nicholas, 344 Nelson, Joan, 419 NGO See Nongovernmental organizations (NGOs) Niang, Bocar, 336 Nondivisibility: of a public good, 2, 284, 292, 452–53 Nonexcludability: of defence, 384; as form of externality, 458; definition of, 510; of the Internet, 348–49; of knowledge, 268–69, 309–10; of peace as public good, 388; as property of public good, 284, 308–10, 383–84; of world’s health, 268–69 Nongovernmental organizations (NGOs): activities in health Oaks, Stanley C., Jr., 268, 273 O’Brien, Rita Cruise, 336–37 Obstfeld, Maurice, 135 OIHP See Organisation Internationale d’Hygiène Publique (OIHP) O’Leary, Sheila, 244 Ollila, Eeva, 281 Olson, Mancur, xxiii, 6, 8, 14, 199 Oneal, John, 393 539 GLOBAL PUBLIC GOODS Order: as condition for production of public goods, 73–74; disruption of, 80; factors in construction of, 82–83; national, international, and global, 74–76 Ordeshook, Peter C., Organisation for Economic Cooperation and Development (OECD): banking system standards of, 136; codes of conduct, 107; Development Assistance Committee report (1996), 468–69; Development Assistance Committee reporting system, 443–44; solicitation of labour input, 104; surveillance role, 165 Organisation Internationale d’Hygiène Publique (OIHP), 266, 269–71 Organizations: intergovernmental, 481; International Organization of Securities Commissioners, 107; role of international, 54–62 Original position (Rawls), 117–21 Oye, Kenneth, 7, 51, 52 Ozone layer: evidence of depletion (1977–85), 195; international agreements on depletion of, 192; scenarios to reduce depletion of, 200–02 Participation gap: closing, xxix–xxxii, xxvi, 478–85 Particularism, national (Rawls), 118, 120–21 Pasteur Institute, 275, 279 Patent system: effect of design of, 311; government issue of patents, 311; self-selection mechanism in, 312–13 Peace: during and at end of Cold War, 390, 393–94; global and regional, 389; in idea of collective security, 392–93; just peace as public good, 367; promoted by free trade, 93; as public good, 388–89; threats to, xii–xiii Peacekeeping, 389; chronology of UN operations, 407–10; NATO’s role, 401; UN models of, 396–400; UN role in, 398–404, 410 Pearce, David W., 247 Pecchenino, Rowena, 20, 42 Pedersen, Karl R., 423 Pezzey, John, 44 Pickard, Rob, 243 Pigou, Arthur C., 119 Point Four programme (Truman), 98–99 Polanyi, Karl, 77, 89 Pollution rights: markets for, 58, 157; trading, 225–26 Pool, Ithiel de Sola, 327 Porat, Marc Uri, 326, 327 Portes, Richard, 179 Prebisch, Raul, 98 Preston, Richard, 273 Prevention: culture of, 376–79; of deadly conflict, 368–76; operational and structural, 368; topdown and bottom-up, 368–69 Prisoner’s dilemma: conditions in collective action for, 487; coop- Page, Talbot, 28 Paglioa, Stefano, 247, 249 Pan-American Sanitary Bureau (1902), 266, 270, 275 Pareto efficient, 510 Pareto principle: finding Paretosuperior solution, 167–68; intergenerational efficiency, 28; in model of public goods intergenerational spillovers, 28; reaching Pareto frontier, 54–56 Parfit, Derek, 84 540 INDEX eration related to public goods, 7–9; definition of, 510; governments’ avoidance of, 482; as model of states’ interests, 53; reaching Pareto frontier in, 54; representation of international cooperation in, 198 Pritchett, Lant, 100 Private goods: access to, 492; characteristics of, 223–24; made more public, 492; market for, 3, 227–29; need for, Private sector: emergence of global markets in, 374; role of government in, 374 Privatization: advantages and disadvantages, 319–20; effect on nature of public goods, 221; of the Internet, 346; of telecommunications, 334–36 ProMed-mail, 276–77 Property, intellectual: concept of, 314–17; preserving incentives related to rights to, 313–14; regime designed to protect rights to, 314–16; using knowledge in proposed international regime, 316–17 Property rights: defining, 491–92; for financial stability, 163; intellectual, 314–17; in market allocation, 227–29; in market for tradable emissions, 226 Public, global: countries as, 10; generations as, 11–12; socioeconomic groups as, 10–11 Public bads: circumstances creating, xxv; examples of, 9; from negative externalities, 156–57 Public bads, global: circumstances for, 456–58; definition of, 511; financial instability as, 152; ozone depletion and climate change as, 192; with scarcity of global commons, 458; sources of, 458–59 Public choice theory, 194, 385 Public goods: characteristics of, 223–24; control of communicable diseases as, 285; control of tobacco and drug use, 289; defence as, 383–88; defined, xix–xx, 382–83; equity and justice as, 82–84; equity in demand for and supply of, 79–82; externalities of, xx–xxi; financing, 79; fixed costs of, 489; joint products of, 24–27; knowledge as, 294, 308; model of interaction between two countries related to, 420–25; modern privatelyprovided, 224–34; national, xii–xiii; nonrivalrous and nonexclusionary, 2, 383–84; peace as, 388–89; positive externalities as, 6; privatization of, 221–22, 484; properties of, 308–11; pure and impure, xx–xxi, 3–5, 310; pure and impure intra- and intergenerational, 23–26; social justice as, 113; supply problems of, 6–9; transnational, 20–21; using core health functions to promote, 295–97 See also Club goods; Private goods; Public bads Public goods, global: closing gaps in provision of, xxvi–xxxiv, 466–93; concept of, xxi, 452–56, 465; conflict prevention as, 366–71; control of disease, 292; control of environmental threats as, 288; criteria for, 2–3, 9; definition of 509–10; distinguished from nonglobal public goods, 12–14; emerging class of, 461–64, 486; exchanging contributions to, 492–93; health as, 289; identifying, 9–16; information as, 294; 541 GLOBAL PUBLIC GOODS interlinkages among, 457–58; international health surveillance as, 268–69, 284; knowledge as, 308, 310–11; in new era of public policy, 452; nondivisibility and nonexcludability of, xxix, 2, 284, 292, 452–53; open international market as, 133–35; as prisoner’s dilemma game, 198–200; proposed global participation fund, 496; provision of new class of, 450–51, 457; reasons for underprovision of, xxi; reduction in certain chemicals and gases as, 192; requirements for, 10–12; role of equity in provision of, 70; sharing responsibility for provision, xxvii–xxix; social justice as, 89–93, 113; sources of, 458–59; supply problems of, 14–16, 486–88; typology of, 453; weaknesses in provision of, xxvi–xxxiv Public goods, intergenerational: distinct from intragenerational public goods, 22; identified, 20, 23–26; model of spillover, 27–38, 45–47 Public goods, intragenerational: distinct from intergenerational public goods, 22–26; identified, 23–26 Public goods, regional: delivery of, 441; evidence on provision of, 442–46; examples of, 437–40; intra- and intergenerational, 23–26; recommendations for enhancing provision of, 446–48 Public policy: beyond national borders, xxv–xxvii; challenges posed by global public goods, 453; global outcomes, 453, 456; implications for the Internet, 353–59; implications of public goods, 311; new era of, 452; recommendations to enable cooperation in disease surveillance, 267; to reduce or avoid crossborder spillovers, xxviii Putnam, Robert, 15, 147 Radelet, Stephen, 162, 167, 171 Raffer, Kunibert, 469 Rao, J Mohan, 57, 456, 459, 460, 522–23 Rawls, John, 116–17, 119–21, 485 Ray, James Lee, 370 Raymond, Susan U., 297 Rayport, Jeffrey, 346 Razali, Ismail, v Razin, Assaf, 167 Reciprocity strategies: emerging from repeated games, 53; operation of, 53; under recent trade agreements, 133; role of institutions in, 55 Reinicke, Wolfgang, 462, 466, 481 Representation, North-South, 479–80 Rey Report (G–10), 179–80 Rhodes, Tom, 349 Riddell, Roger C., xxiv, 418 Riera, Per, 231 Riker, William H., Rio Earth Summit (1992), 196 Risks, systemic, 462–63 Rittberger, Volker, xxiii Rivalry: of club goods, 5, 23; related to the Internet, 352–53 See also Nonrivalry Rocke, David M., 213 Rodan, Garry, 355 Rodrik, Dani, 101, 268, 462 Roosevelt, Franklin D., 89, 91, 96, 112–13 Rose, Andrew, 161, 167 Rosecrance, Richard, 371 Rosen, Harvey, 384 542 INDEX Rosen, Sherwin, 248 Rothschild, Emma, 393 Ruggie, John Gerard, 13, 97 Rule of law: in management of relations among people, 375–76; security, well-being, and justice based on, 367 Rules of the game: for developing countries, 134–35; international, 72–73 Rummel, Rudolph J., 370 Russett, Bruce, xxiii, 370, 393, 480 15, 198; in provision of public goods, 83–84; in treaty agreements, 236 Sen, Amartya, xxiv, 6, 57, 59, 60, 117, 123, 459–60, 523–24 Serageldin, Ismail, 247, 249, 250, 251, 524 Shapiro, Carl, 312 Sheehan, Michael, 390 Shmanske, Stephen, Shope, Robert E., 268, 273 Siddiqi, Javed, 281 Sidgwick, Henry, 119 Sikkink, Kathryn, 60 Silverman, Victor I., 93 Singer, Hans, 98 Singleton, Solveg, 355 Sinha, Nikhil, 327, 335–36 Siniscalco, Domenico, Sivard, Ruth, 404 Slaughter, Anne-Marie, 482 Smith, Adam, Smith, V Kerry, 28 Snidal, Duncan, 54 Social justice: commitment of United Nations to, 88–89; domain of, 116; provision of, 113; as public good, 89–93, 113 Social Watch, 463, 498n1 Sollenberg, Margareta, 404 Solomon, Jay, 110 Solow, Robert, 44 Southern Cone Common Market (MERCOSUR), 129, 138 Sovereignty, operational or internal, 466 Spar, Debora, 456, 459, 524 Speth, James G., 78 Spill-ins: in model of intergenerational public goods, 30, 35; in national externality profiles, 468–71 Spillovers: externalities as, 5; internalizing cross-border, 469, Sachs, Jeffrey, xxx, 161, 162, 167, 171, 441, 452, 523 Samuelson, Paul A., xxiii, 310, 382–83, 384 Sandler, Todd, xxiii, 5, 9, 20, 22, 26, 28, 29, 35, 40, 45, 232, 268, 385, 420, 422, 424, 425, 486, 490, 523 Sandnes, Hilda, 26 Sargent, Keith, 26 Satellite systems, 332–33 Scharpf, Fritz, 103 Schelling, Thomas, 56, 212, 419, 427, 482 Schepin, Oleg, 270, 271 Schmidheiny, Stephan, 481 Schwab, Klaus, v Schwartz, Stephen I., 385 Security: collective security model, 390, 392–93; economic security (Hayek), 92; as factor in conflict prevention, 367, 371–73; mechanisms to ensure, 371–73; postCold War, 393–94; security dilemma concept, 390–91; sources of insecurity, 371–72; threats to, 372 See also Collective security Self-interest: in bargaining, 76; enlightened, 76–77, 378; market failures from national, 385–88; of military sector, 385; national, 543 GLOBAL PUBLIC GOODS 472–73; in international financial markets, 159; of intra- and intergenerational public goods, 23–25; model of public goods’, 27–40; of public good benefits, 28; public policy to reduce or avoid cross-border, xxvii See also Adoption spillovers Srinivasan, T N., 75 Stabler, Michael, 247 States See also Governments Stein, Arthur, 54, 56 Stern, Marc, 524–25 Stern, Peter, 327, 334, 335, 336 Stiglitz, Joseph, 5, 310, 320, 348, 350, 383, 384, 525 Stokke, Olav, xxiv Stone, Christopher D., Strange, Susan, 8, 74, 463 Streeten, Paul, 9, 492 Subsidiarity principle, xxviii, 159, 183 Sullivan, John, xxiii Sullivan-Trainor, Michael, 346 Surveillance of international health: for emerging infections, 292; as global public good, 266–69; history of, 269–73 Sutton, Brent, 461, 481 Svensson, Jakob, 419, 420 Sy, Jacques Habib, 337, 461, 525 Thompson, Grahame, 462 Thurow, Lester, 71, 83 Tiebout, Charles M., 310 Tobin tax proposal, 105, 108 Toman, Michael A., 44 Tornell, Aaron, 161 Trade: barriers to, 128, 132, 147; end of preferential treatment for developing countries, 133; modern theory of, 97–98; sanctions imposed by international system, 106 See also Free trade Trade agreements: benefits and risks for developing countries, 135–45; deeper, 147; deep integration with complex, 128; introducing labour standards into, 143–45; multilateral character of, 129; proposed oversight of, 134–35; reciprocity under recent, 133 Trade clubs: costs and benefits to developing countries, 129; nations as members of, 129; regional, 145–46 Trade policy: effect of liberalization in, 130–37; postwar free trade policies, 97–99; protectionism in developed country markets, 135, 140; recommendation linking labour standards to liberalization, 105–7 Trade sanctions: enforcement of standards through, 143–45; provisions in Montreal and Kyoto Protocols, 210–12 Transactions costs: definition of, 511; in managing regional public goods provision, 441–42 Transparency International, 463, 498n1 Transport: as regional public good, 439 Treaties: cooperation under, 193 Takahashi, Kazuo, v Tanzi, Vito, 109, 490 Tariffs, optimal, 134–35 Taxation: proposed world tax organization, 109; Tobin tax proposal, 105, 108, 164 Taylor, Sue, 243 Telecommunications: components of reform in, 334–36; as regional public good, 439; role of, 327; USAID plan to privatize African, 331 544 INDEX Tripartism, 480 Truman, Harry S, 96, 98–99, 378 United Nations: Agenda for Peace, 399–400; approach to distributive justice, 88; budget of High Commissioner for Refugees, 396; Commission for Europe; Conference on Environment and Development (1992), 472, 481; Conference on the Human Environment (1972), 472; Convention on Biodiversity, 492; Emergency Force, 399; Environment Programme (UNEP) International Conference on the Ozone Layer (1977), 195; financing of peace and security activities, 400–404; Framework Convention on Climate Change (1997), 196–97, 473, 492; need for more democratic Security Council, 480; peacekeeping role, 397–404, 407–10; proposed Global Trusteeship Council, 482, 485; provision of regional public goods, 445; role in peace and security, 397–98; role in preventing conflict, 378–79; Transitional Authority in Cambodia (1992–93), 394 United Nations Charter: Article 55, 92; prohibition of aggression between states, 370; on settlement of local disputes, 396; system of collective security in, 392–93 United Nations Conference on Trade and Development (UNCTAD): codes of conduct, 107; proposed role to shape labour standards, 107–8 United Nations Development Programme (UNDP): Human Development Report, xii–xiii, 483; Internet Initiative for Africa, 330; role in production and dissemination of knowledge, 319 United Nations Educational, Scientific, and Cultural Organization (UNESCO), xxviii United Nations Environment Programme (UNEP): International Conference on the Ozone Layer (1977), 195; Ozone study with U.S Environmental Protection Agency, 195 United States: adoption of Generalized System of Preferences, 99; decline in economic hegemony, 71; Framework for Global Electronic Commerce (1997), 353 U.S Agency for International Development (USAID), 279, 331 U.S Centers for Disease Control and Prevention (CDC): Epidemiological Training Program, 279; infectious disease publications, 273; Quarantine division, 275–76; responses to disease outbreaks, 275; surveillance capabilities, 278–79 U.S Environmental Protection Agency: ozone study with UNEP, 195; scenarios for reducing ozone depletion, 200 U.S Institute of Medicine, 273 Universal Declaration of Human Rights, 78, 92 Universalism, grand, 118–20 Urquhart, Brian, 399 Varian, Hal, 350, 423 Velasco, Andrès, 161 Veneroso, Frank, 476 545 GLOBAL PUBLIC GOODS Vercelli, Alessandro, Vernon, Raymond, 82 Vienna Convention for the Protection of the Ozone Layer (1985), 195 Vienna Declaration (1993), 78 Association, 492; lending for regional public goods, 445; recommendation for conditional lending of, 109–10; role in production and dissemination of knowledge, 319 World Commission on Environment and Development (Brundtland Commission), 11 World Federation of Trade Unions (WFTU), 92–93 World Health Organization (WHO): assistance during ebola outbreak in Zaire, 274; Collaborating Centers, 275, 278, 280; Division for Emerging Communicable Diseases, 277, 279; establishment (1948), 266; International Health Regulations of, 272, 279–80, 284; reform process, 296; role of, 271–72; Rumor Outbreak Page, 269, 277 World Intellectual Property Organization (WIPO), xxviii–xxix, 497 World Trade Organization (WTO), 129, 141, 144, 148 World Watch Institute, 463 Wyplosz, Charles, 108, 161, 162, 167, 168, 456–57, 459, 525 Wade, Robert, 476 Wallensteen, Peter, 404 Walt, Gill, 295 Warner, Andrew, 179 Warr, Peter G., 423 Wasko, Janet, 326, 334 Watts, Sheldon, 271 Weindling, Paul, 271 Weingast, Barry, 56 Welfare state: Keynesian theory as core of postwar, 91; as provider of social justice, 93–97; social justice in postwar, 93–97 Well-being: as factor in conflict prevention, 367, 373–75 Wellenius, Bjorn, 327, 334, 335, 336 Wheeler, David, 141 Wijkman, Per Magnus, Williams, Frances, 497 Williams, Green, 270, 497 Williams, Jr., 243 Willis, Clint, 350 Willis, Ken, 248 Wilson, Theodore, 89 Winpenny, James T., 247 Wolfensohn, James, 320 Wollstonecraft, Mary, 83 Woodall, Jack, 276 Worksett, Roy, 242 World Bank, 275, 281; financial sector reform task of, 165; financing for health, 296; financing of large loans by, 174; InfoDev program, 330; International Development Yach, Derek, 295 Yamey, Basil, 418 Yermakov, Waldermar, 270, 271 Young, Oran R., 464 Zacher, Mark, 60, 461, 481 Zhang, Mo, 347 Zinsser, Hans, 284 Zurn, Michael, xxiii 546 ... DEFINING GLOBAL PUBLIC GOODS A typology of global public goods We have already distinguished between pure and impure global public goods In what follows we will sort global public goods according... Congress Cataloging -in- Publication Data Kaul, Inge Global public goods: international cooperation in the 21st century/ edited by Inge Kaul, Isabelle Grunberg, Marc A Stern p cm Includes bibliographical... another criterion, namely, their place in the production chain We suggest here a distinction between final and intermediate global public goods • Final global public goods are outcomes rather