Global public goods

Global public goods are public goods whose benefits reach across 1)_____, generations and population groups. They form part of the broader group of international public goods, which include as another sub-group, 2)_____ public goods.

To make the notion of a global public good more concrete, consider, for example, the eradication of small pox. Once accomplished, the whole of humanity benefits – people in all parts of the globe, present as well as future 3)_____, rich and poor. Similarly, if the international 4)_____ were to succeed in ensuring peace, everyone would be able to enjoy it. Much the same holds true for well-functioning international markets. And averting the risk of 5)_____ climate change would secure inter-generational as well as geographically widespread benefits, although people in various parts of the world might benefit in different ways. Similarly, international regimes such as those for civil 6)_____, postal services, and telecommunications, or those recognising a document such as a passport, all have significant properties of "global publicness".

But it is essential to recognise that the publicness of a good does not automatically imply that all people value it in the same way. Poor people, who cannot afford to 7)_____, may not place the highest value on an international passport regime. They may give preference to ensuring global health or to truly free trade so that their goods can also find new markets. Other people may rank the 8)_____control of international terrorism or stability of international financial markets highest. In establishing a global public goods agenda, it is, therefore, important to ensure that the top 9)_____ of different population groups are being considered equitably.

Also, global public goods must not be allowed to further exacerbate existing inequities. Although public, some may not be accessible to the poor. The internet poses this challenge. And others, such as a free trade regime in an unequal world, may give rise to a winner-take-all situation. If these 10_____ are neglected, people’s and states’ willingness to cooperate will suffer – and so will global public goods. Equity is an important element of an effective global public goods strategy.

Exercise 9. Read the given definitions and fill in the crossword puzzle.

Across

3 a term used to indicate an advantage, profit, or gain attained by an individual or organization

6 the world of commercial activity where goods and services are bought and sold

7 data obtained from different sources; knowledge

8 the final use of goods and services to provide utility

10 benefits or costs that are not included in the market price of goods or services

Down

1 the ability to benefit from a situation, etc without having to bear any of its costs and responsibilities

2 the opinion (more technically, a social evaluation) of the public toward a person, a group of people, or an organization

4 introduction of a new idea into the marketplace in the form of a new product or service, or an improvement in organization or process

5 those goods that provide benefits to all members of a community as soon as it is made available to any one person

9 those goods whose benefits are rival in consumption and for which exclusion of those who refuse to pay is relatively easy

Exercise 10. Translate into English.

1. Суспільні товари відрізняються від товарів особистого вжитку.

2. Ринки організовуються шляхом прийняття інди­відуальних рішень, тоді як вироблення суспільних товарів потребує колективних рішень.

3. Споживання суспільного товару однією особою не створює конкуренції для спожи­вання його іншими особами.

4. Виробництво суспільного товару супроводжується позитивними зовнішніми виявами.

5. Споживання суспільного товару необмежене.

6. Ми спостерігаємо безоплатне користування суспільними товарами та послугами, оскільки споживання суспільних това­рів є необмеженим і неконкурентним.

7. Інформація дуже важлива для прийняття рішень в умовах ринкової економіки.

8. Репутація дуже важлива, оскільки вона заощаджує витрати на пошуки, даючи можливість використовувати в майбутньому інформацію, зібрану в минулому.

Exercise 11. Communicative situations.

1. A movie theatre shows a film to a large number of people at the same time. Is this a public good?

2. Mail-order catalogues often offer clothing and other goods at lower prices than local stores. Why doesn't everyone purchase these goods by mail?