The New Public Finance Responding to Global Challenges

by Kaul, Inge; Conceicao, Pedro

• ISBN13: 9780195179972
• ISBN10: 0195179978
• Format: Paperback
• Copyright: 2006-02-23
• Publisher: Oxford University Press

Summary

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.

Table of Contents

Foreword	xi
Mark Malloch Brown
Prologue	xii
Joseph E. Stiglitz
Acknowledgments	xvi
Contributors	xvii
OVERVIEW	1	(70)
WHY REVISIT PUBLIC FINANCE TODAY?	3	(25)
WHAT THIS BOOK IS ABOUT
Inge Kaul and Pedro Conceição
THE CHANGES UNDER WAY	28	(43)
FINANCING GLOBAL CHALLENGES THROUGH INTERNATIONAL COOPERATION BEHIND AND BEYOND BORDERS
Inge Kaul and Pedro Conceição
1. THE NEW NATIONAL PUBLIC FINANCE	71	(146)
TAKING THE OUTSIDE WORLD INTO ACCOUNT
BLENDING EXTERNAL AND DOMESTIC POLICY DEMANDS	73	(36)
THE RISE OF THE INTERMEDIARY STATE
Inge Kaul
MAKING POLICY UNDER EFFICIENCY PRESSURES	109	(22)
GLOBALIZATION, PUBLIC SPENDING, AND SOCIAL WELFARE
Vito Tanzi
INTERNALIZING CROSS-BORDER SPILLOVERS	131	(21)
POLICY OPTIONS FOR ADDRESSING LONG-TERM FISCAL CHALLENGES
Peter S. Heller
MANAGING RISKS TO NATIONAL ECONOMIES	152	(15)
THE ROLE OF MACRO MARKETS
Robert J. Shiller
COMBINING FISCAL SOVEREIGNTY AND COORDINATION	167	(27)
NATIONAL TAXATION IN A GLOBALIZING WORLD
Peggy B. Musgrave
RECOGNIZING THE LIMITS TO COOPERATION BEHIND NATIONAL BORDERS	194	(25)
FINANCING THE CONTROL OF TRANSNATIONAL TERRORISM
Todd Sandler
2. THE NEW INTERNATIONAL PUBLIC FINANCE	217	(108)
RELYING ON PUBLIC-PRIVATE COOPERATION AND COMPETITION
EXPLORING THE POLICY SPACE BETWEEN MARKETS AND STATES	219	(50)
GLOBAL PUBLIC-PRIVATE PARTNERSHIPS
Inge Kaul
ACCOMMODATING NEW ACTORS AND NEW PURPOSES IN INTERNATIONAL COOPERATION	269	(12)
THE GROWING DIVERSIFICATION OF FINANCING MECHANISMS
Pedro Conceição
MAKING THE RIGHT MONEY AVAILABLE AT THE RIGHT TIME FOR INTERNATIONAL COOPERATION	281	(23)
NEW FINANCING TECHNOLOGIES
Pedro Conceição, Hari Rajan, and Rajiv Shah
TAKING SELF-INTEREST INTO ACCOUNT	304	(23)
A PUBLIC CHOICE ANALYSIS OF INTERNATIONAL COOPERATION
Philip Jones
3. THE NEW INTERNATIONAL PUBLIC FINANCE	325	(144)
INVESTING IN GLOBAL PUBLIC GOODS PROVISION ABROAD
IDENTIFYING HIGH-RETURN INVESTMENTS	327	(30)
A METHODOLOGY FOR ASSESSING WHEN INTERNATIONAL COOPERATION PAYS-AND FOR WHOM
Pedro Conceição and Ronald U. Mendoza
MAKING INTERNATIONAL COOPERATION PAY	357	(14)
FINANCING AS A STRATEGIC INCENTIVE
Scott Barrett
COMPENSATING COUNTRIES FOR THE PROVISION OF GLOBAL PUBLIC SERVICES	371	(18)
THE TOOL OF INCREMENTAL COSTS
Kenneth King
CREATING NEW MARKETS	389	(28)
THE CHICAGO CLIMATE EXCHANGE
Richard L. Sandor
USING MARKETS MORE EFFECTIVELY	417	(16)
DEVELOPING COUNTRY ACCESS TO COMMODITY FUTURES MARKETS
C. Wyn Morgan
ASSESSING CONTRACTUAL AND STATUTORY APPROACHES	433	(20)
POLICY PROPOSALS FOR RESTRUCTURING UNSUSTAINABLE SOVEREIGN DEBT
Barry Eichengreen
PLACING THE EMPHASIS ON REGULATION	453	(18)
LESSONS FROM PUBLIC FINANCE IN THE EUROPEAN UNION
Brigid Laffan
4. THE NEW INTERNATIONAL PUBLIC FINANCE	469	(138)
ENHANCING AID EFFICIENCY
USING AID INSTRUMENTS MORE COHERENTLY	471	(15)
GRANTS AND LOANS
Paul Collier
RECTIFYING CAPITAL MARKET IMPERFECTIONS	486	(24)
THE CONTINUING RATIONALES FOR MULTILATERAL LENDING
Yilmaz Akyüz
PULLING NOT PUSHING REFORMS	510	(19)
DELIVERING AID THROUGH CHALLENGE GRANTS
Steve Radelet
OVERCOMING COORDINATION AND ATTRIBUTION PROBLEMS	529	(20)
MEETING THE CHALLENGE OF UNDERFUNDED REGIONALISM
Nancy Birdsall
REDUCING THE COSTS OF HOLDING RESERVES	549	(15)
A NEW PERSPECTIVE ON SPECIAL DRAWING RIGHTS
Jacques J. Polak and Peter B. Clark
CREATING INCENTIVES FOR PRIVATE SECTOR INVOLVEMENT IN POVERTY REDUCTION	564	(21)
PURCHASE COMMITMENTS FOR AGRICULTURAL INNOVATION
Michael Kremer and Alix Peterson Zwane
MITIGATING THE RISKS OF INVESTING IN DEVELOPING COUNTRIES	585
CURRENCY-RELATED GUARANTEE INSTRUMENTS FOR INFRASTRUCTURE PROJECTS
Stephany Griffith-Jones and Ana Teresa Fuzzo de Lima
ANNEXES
FURTHER READING	607	(6)
GLOSSARY	613	(4)
ABOUT THE CONTRIBUTORS	617	(7)
INDEX	624