Rethinking international aid for the public good

In recent years, development assistance of international public goods (BPI aid) has been steadily increasing due to higher international public goods because of increasingly international transaction, and increasingly contagion, such as currency crises. Although it is often said that the provision of international public goods tends to be inadequate, it has been proved theoretically that the provision does not need to be inadequate if their types and incentive systems are "reconsidered". This paper examines various aspects of the IPG aid, such as suppliers of aid and the IPG optimal involvement of Multilateral Development Banks (MDBs), taking into account theoretical and empirical development in recent years and the realities on the ways and means for the size of the IPG and providers of aid.

Firstly, the document shows that by focusing on the arguments of Todd Sandler and others, it is possible to promote volunteerism IPG aid if the types of goods (eg, club merchandise and common products), the grouping of technologies (eg, best ball, low and Maillon) party structures and the design of systems (such as prisoners dilemma games with rewards or penalties, games and insurance) are justified. Next, the paper discusses the participation of international organizations or major countries push through direct contributions, the "pushing" and "building partnerships" to ensure a minimum level of contributions, in respect of each type of international public good , the technology or the aggregation structure Thursday. It also discusses the possibility of maintaining appropriate levels of contributions without public participation.

It is understood that the IPG aid includes not only a useful tool for "core businesses" which produce international public goods (such as the development of drugs to prevent infections), but also aid for "complementary activities" (such that the distribution of drugs to prevent infections in the developing countries) for consumption (use) of international public goods in developing countries, given the close interdependence between the delivery and receipt of the delivery of goods international public. Therefore, the size of the IPG aid including complementary activities is discussed by using the CRS (creditors reporting system) of the OECD / DAC. In recent years, aid has IPG was between 20 and 40 percent of total ODA (though figures vary depending on the definition of aid IPG). According to trial calculations, the entire IPG aid from Japan is also rising steadily, as is the case with other OECD countries, relatively focused on complementary activities in the health and medical care.

International Public Goods composed of global public goods, whose profits are expected to spread throughout the world, and regional public goods, which should benefit from a certain area only. This paper examines the current state of global public goods, aid (aid GPG), taking the Global Environment Facility (GEF) as an example. It is believed that financing through "partnerships" is possible for the GEF programs, which support global environmental conservation activities in developing countries. Because these programs are considered "combination products" that create benefits not only for the global environment, but also for the environment and the development of certain countries or regions. Therefore, the GEF can be a mechanism to provide additional funds to improve support activities such as the global environment problems in developing countries such as climate change and biodiversity, through partnerships with bilateral donors , multilateral development banks, UN agencies and NGOs.

It is said that the demand for regional public goods has increased in recent years. Regional development banks (BRD), such as the Asian Development Bank and the Interamerican Development Bank are active in projects offering not only an entire region but also specific projects for sub-regions such that the Mekong region, South Asia, Central Asia, Central America and South America. That regional public goods to be provided by international organizations such as regional or global BRD by international organizations such as the World Bank, should be determined by applying the criteria of efficiency. It is to compare the effectiveness of the provision of regional public goods by regional international organizations in accordance with the principle of subsidiarity "(indicating that the area where the benefits are enjoyed should correspond to the area covered by an organization) with the efficiency of the economy of scale and scope in the global supply by international organizations. IPG The majority of core assistance from the World Bank and BRD is provided by "grant" rather than "loans" and more large quantities, which could be financed. Because of the low incentive for a country to repay the borrowings for the international public goods whose benefits are enjoyed by more than one country. however, there are cases emerging markets, including several countries borrow funds in the context of a common approach to increasing international public goods.

IPG bilateral aid may also be regarded as "common products", in which the provision of international public goods strengthens national interests (in a narrow sense, ie private benefits) of donor countries. In addition to providing funding and design of systems for the provision of international public goods, but also the role of multilateral development banks to provide information and opportunities for negotiations and the formation of partnerships, so that countries Donors are able to provide a better understanding of their national interests (in the broadest sense) to be strengthened.