The New Public Finance

Responding to Global Challenges

Inge Kaul and Pedro Conceição

A new look at the world's changing agenda for international cooperation.
A collection of twenty-four new essays from contributors around the world.
By the same author: Global Public Goods: International Cooperation in the 21st Century (OUP, 1999) sold 9,300 (6,000 in the first year).

The New Public Finance

Responding to Global Challenges

Inge Kaul and Pedro Conceição

Description

The world's agenda of international cooperation has changed. The conventional concerns of foreign affairs, international trade, and development assistance, are increasingly sharing the political center stage with a new set of issues. These include trans-border concerns such as global financial stability and market efficiency, risk of global climate change, bio-diversity conservation, control of resurgent and new communicable diseases, food safety, cyber crime and e-commerce, control of drug trafficking, and international terrorism and weapons of mass destruction. Globalization and increasing porosity of national borders have been key driving forces that have led to growing interdependence and interlocking of the public domains—and therefore, public policy concerns—of countries, governments, private businesses, civil society, and people at large. Thus, new and different issues are now occupying top places on national policy agendas, and consequently, on the agendas of international negotiating forums. The policy approaches to global challenges are also changing. A proliferation and diversification of international cooperation efforts include focus on financing arrangements. Financing of international cooperation in most instances is a haphazard and non-transparent process and often seems to run parallel to international negotiations. There are many unfunded mandates and many-non-mandatory funds.

To agree on and to achieve international economic goals, we need to understand how financing of international cooperation efforts actually works. Our understanding is hampered by two gaps: 1) lack of an integrated and cohesive theoretical framework; 2) lack of consolidated empirical and operational knowledge in the form of a comprehensive inventory of past, current and possible future (i.e. currently deliberated) financing mechanisms.

This book reduces these two gaps and provides a guide to improve our ability to finance international cooperation.

The New Public Finance

Responding to Global Challenges

Inge Kaul and Pedro Conceição

Foreword
1: Introduction: What this Book is About
2: The Main Messages
PART I: The New National Public Finance—Taking the Outside World into Account
3: The Rise of the Intermediary State, Inge Kaul
4: Making Social Policy under Efficiency Pressures from Globalization, Vito Tanzi
5: Addressing Long-term Fiscal Challenges in an Interconnected World, Peter Heller, International Monetary Fund
6: Macro Markets: Managing Risks to National Economies, Robert Shiller, Yale University
7: National Taxation in a Globalizing World: Policy Sovereignty and Coordination, Peggy Musgrave
8: Recognizing the Limits to Cooperation behind National Borders: Financing the Control of International Terrorism, Todd Sandler
PART II: The New International Public Finance—Relying on Public-Private Partnering
9: The New Players on the Ground: Global Public-private Partnerships, Inge Kaul
10: Financing Mechanisms for International Cooperation: Growing Numbers, Diversity and Issue-Specificity, Pedro Conceição
11: The Right Money at the Right Time: Bringing New Financing Technology to International Cooperation, Pedro Conceição, Hari Rajan, Rajiv Shah
12: Financing International Cooperation: A Public Choice Analysis, Philip Jones
PART III: The New International Public Finance—Investing in Global Public Goods Provision Abroad
13: Identifying High-Return Investments: When Does International Cooperation Pay—and for Whom?, Pedro Conceição & Ronald Mendoza
14: Making International Cooperation Pay: Money as a Strategic Incentive, Scott Barrett
15: "Trading" Global Public Services: The Incentive of Incremental Cost Payments, Kenneth King, World Bank
16: Letting New Markets Find the Price: A Case Study of The Chicago Climate Exchange, Richard Sandor
17: Using Existing Markets More Efficiently: Facilitating Access of developing Countries to Commodity Futures and Options Markets, Wyn Morgan
18: A New Perspective on the SDR Mechanism: Reducing the Cost of Holding Reserves, Jaques Polak & Peter B. Clark, both from the International Monetary Fund
19: Restructuring Unsustainable Sovereign Debt: The Merits of the Contractual and the Statutory Approach, Barry Eichengreen, University of California, Berkeley
20: Excursus: Public Finance in the European Union: Emerging Lessons for International Cooperation, Brigid Laffan
PART IV: The New International Public Finance—Incentivizing Foreign Aid
21: Some Things Cannot Yet Change: The Continuing Need for Multilateral Development Finance, Yilmaz Akyuz
22: Creating Incentives to Graduate from Grants to Loans, Paul Collier, Oxford University
23: Offering Challenge Grants: The MCA, Steven Radelet, Center for Global Development
24: Overcoming Smallness: The Challenge of Underfunded Regionalism, Nancy Birdsall
25: Purchase Commitments: Incentives for Private Sector Involvement in Poverty Reduction, Michael Kremer & Alix Peterson-Zwane, University of California, Berkeley
26: From Direct to Indirect Donor Financing: The Role of Guarantees in Attracting private Finance to Developing Countries, Stephany Griffith-Jones

The New Public Finance

Responding to Global Challenges

Inge Kaul and Pedro Conceição

Author Information

Inge Kaul, Director, Office of Development Studies, United Nations Development Programme, and Pedro Conceição, United Nations Development Programme

The New Public Finance

Responding to Global Challenges

Inge Kaul and Pedro Conceição

Reviews and Awards

"This collection offers a useful mix of public policy theory and practical applications. It serves as a worthwhile guide to how policy areas (e.g., the environment, economic development, and international debt) should be addressed and provides practical ideas about how to achieve international public policy goals. Recommended." - Choice