Global public good
Encyclopedia
A global public good is a good that has the three following properties :
This concept is an extension of Samuelson
's notion of public goods to the economics
of globalisation.
The theoretical concept of public goods does not distinguish with regard to the geographical region in which a good may be produced or consumed. However some theorists (such as Inge Kaul) use the term global public good to mean a public good which is non-rival and non-excludable throughout the whole world, as opposed to a public good which exists in just one national area. Knowledge
is a canonical example of a global public good. In some academic literature it has become associated with the concept of a common heritage of mankind
.
The stability of the UK's financial system has been described as a global public good by the IMF
due to the systems's 'size and role ... in global intermediation [which] puts it in a position to originate and transmit shocks to the global financial system, but also to dampen them'.
- It is non-rivalrous. Consumption of this good by anyone does not reduce the quantity available to other agentsAgent (economics)In economics, an agent is an actor and decision maker in a model. Typically, every agent makes decisions by solving a well or ill defined optimization/choice problem. The term agent can also be seen as equivalent to player in game theory....
. - It is non-excludable. It is impossible to prevent anyone from consuming that good.
- It is available worldwide.
This concept is an extension of Samuelson
Paul Samuelson
Paul Anthony Samuelson was an American economist, and the first American to win the Nobel Memorial Prize in Economic Sciences. The Swedish Royal Academies stated, when awarding the prize, that he "has done more than any other contemporary economist to raise the level of scientific analysis in...
's notion of public goods to the economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
of globalisation.
The theoretical concept of public goods does not distinguish with regard to the geographical region in which a good may be produced or consumed. However some theorists (such as Inge Kaul) use the term global public good to mean a public good which is non-rival and non-excludable throughout the whole world, as opposed to a public good which exists in just one national area. Knowledge
Knowledge
Knowledge is a familiarity with someone or something unknown, which can include information, facts, descriptions, or skills acquired through experience or education. It can refer to the theoretical or practical understanding of a subject...
is a canonical example of a global public good. In some academic literature it has become associated with the concept of a common heritage of mankind
Common heritage of mankind
Common heritage of mankind is a principle of international law which holds that defined territorial areas and elements of humanity's common heritage should be held in trust for future generations and be protected from exploitation by individual...
.
The stability of the UK's financial system has been described as a global public good by the IMF
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
due to the systems's 'size and role ... in global intermediation [which] puts it in a position to originate and transmit shocks to the global financial system, but also to dampen them'.
External links
- Global Public Goods - analysis from Global Policy Forum
- Global Public Goods (OUP Book)
- Global Public Goods Network (UNDP)