Sandler clarified the economic importance of subsidiarity in the provision of GPGs: when the coordinating jurisdiction reaches beyond the range of the public good spillovers, there is a possibility of oversupply; when the coordinating jurisdiction does not reach all affected agents, there is a possibility of undersupply.
Based on these economic reasons, Ocampo (2013, 2-8) advocates for the application of strong subsidiarity principles in achieving the three basic objectives of international cooperation with respect to the provision of GPGs: (i) managing the interdependence among nations; (ii) fostering the adoption of common social standards and providing a minimum level of services; and (iii) reducing inequalities among countries.
The first objective of international cooperation is managing the interdependence among nations in the provision of GPGs. Ocampo attributes to this objective the efficient provision of GPGs with regards to addressing their economic attributes, that is, with a view to achieving a welfare-maximizing global supply of goods that are nonrivalrous in consumption and nonexcludable in consumption, or that generate significant externalities.
The study of GPGs raises a question common to both agendas and central for each one, (3) namely identifying the governance requirements posed by global challenges.
Foreign aid, on the one hand, and cooperation about GPGs on the other hand, need to be governed according to its own logic.
These challenging objectives, i.e., long-term structural development and the efficient and equitable provision of GPGs, demand intense reforms in the international financialisation process and, more specifically, in the architecture of international finance (Garcia-Arias, 2015, 2014), and require that international (private and official) capital flows be focused, at least partially, on the service of human development (3).
If guaranteeing reasonable long-run development objectives and an adequate provision of GPGs demands a significant, growing, stable and more efficient volume of financial resources, then the first option for meeting this need should involve increasing the quantity and quality of resources obtained via the TIIFDs.
Depending on the stakeholders, there are numerous applications of GPG
and checklists that are utilized by sundry stakeholders (Table 1).
The concept of global public goods (GPGs) is not new, but in the past few years it has been widely discussed in international development.
(8) While earlier contributions had focused mainly on national public goods, the UNDP brought the concept of GPGs from the realm of microeconomics into the realm of international policy analysis.
The idea of global public goods (GPGs) builds on but also provides a revisionist approach to the conventional economic textbook definition of "public goods" (PGs).
The GPGs approach is particularly relevant in the global fight against control of infectious diseases.