Economic Development Aids as a Financial Instrument of Global Public Goods

Abstract

The importance of global public goods (GPGs) is increasing every day. As a result, the concept become an important part of international policymaking. There is a huge literature on the definition and classification of GPGs, as well as the financing problems of them. GPGs are generally financed through the development aids given by international organizations and some developed countries. Literature is generally concentrated on the determination of the amount of aids devoted to different categories of GPGs, such as environment, health, peace-keeping, and knowledge. Differently from the literature, a new and more general classification is also used in this chapter. The main sectors included in the analysis are social infrastructure and services, economic infrastructure and services, production sectors, multi-sector/gross cutting, and humanitarian aid. For the first time in the literature, principal components and cluster analysis methodologies were used to determine the performance of the countries providing official development aids in this study.