Development aid as a global public good -a case study
This study introduces a new concept to the analysis of development aid. Aid is regarded as a global public good where donors benefit from the advantages of aid without rivalry and exludability. The public-goodnature of aid is a logical explanation for the deficiencies of the international aid regime, especially the suboptimal supply of aid and the free-riding of donors. The concept of aid as a public good raises the questionThe Millennium Development Goals adopted in 2000 and the failure of their achievement has shown that the system of international aid is not successful enough to fulfill the goals set by the main donors themselves. In order to find an explanation for this, the present article applies a specific approach to international aid. Its starting point is that aid can be defined as a global public good and this is why there are systemic reasons for aid being undersupplied. Development aid has become a relevant phenomenon of today's international regime. Aid consists of the transfer of resources between countries and the main goal is to contribute to the recipient country's economic and social development. A sum of 148 billion USD was given last year for development assistance and this amount has been rising since the turn of the millennium (OECD StatExtracts).Donors have three groups of motivations for giving aid. The first group consists of security and foreign policy motivations. Through foreign aid a donor can reach foreign policy objectives and strengthen relationships with an allied country. In a world facing numerous security challenges from sub-state actors, most importantly, aid can strengthen security objectives, stabilize a fragile state, or help in state-building efforts. The second group of motivations is economic or commercial interests. Development aid can strengthen tel.: +36 20 886 4384 Development aid as a global public good -a case study 87 the economic position of the donor in the recipient state and it helps to ensure the presence of cheap raw materials produced by developing countries in the world market. As for the third group the moral motivations have to be mentioned.
The author is a PhD student at the International Studies Institue of the Corvinus University of Budapest and works at the International Department of Hungarian BaptistAid can be regarded as a global public good, and when classified as such, aid is given with a security motivation. The security gains achieved by aid have a public good aspect and the questions raised by this shall be examined in this paper.Public goods theory originates in Samuelson's "The Pure Theory of Public Expenditure" (1954) and is now part of mainstream economics textbooks. (Begg et al 2005, StiglitzWalsh 2002 Goods consumed by society can be distinguished according to the way they are consumed. The two main features of public goods are non-excludability and nonrivalry. This means that no consumer can be effectively excluded from consuming the good and that the consumption by an indivi...