Financing global public goods

Over the last fifteen years, the world has experienced two major crises, the Great Financial Crisis of 2008 and the Covid-19 pandemic. Simultaneously, the growing awareness of the gravity and urgency of climate change, along with its adverse impacts on biodiversity and the environment at large, is thrusting the planet with an unprecedented “polycrisis”. This polycrisis highlights, on the one hand, the interdependencies generated by globalisation, and the depletion of natural resources, and on the other hand, the interconnectedness of risks. The concept of global public goods or universal commons is particularly well suited for both diagnosing and, even more crucially, addressing this polycrisis. It holds the advantage of emphasizing the imperative need for universal solidarity and coordinated efforts in the governance and financing of global public goods.

In the 151st issue of the Revue d’Économie Financière, co-edited by Bertrand Badré -Founding Partner of Blue Like an Orange Sustainable Capital and former Managing Director of the World Bank- and Bruno Cabrillac -Deputy General Manager, Statistics, Research and International Division of the Banque de France- the publication revisits the definition of this age-old concept, with parameters refined by relatively recent economic literature. The discussion delves into the two primary, intricately linked aspects of managing global public goods: their governance and their financing mechanisms. In this issue, the climate, which is emblematic of global public goods, is granted specific emphasis, and alongside it, the topics of oceans and financial stability further illustrate this theme.

With 35 authors and 23 articles - including three sections, “Financial History Chronicle”, “Finance and literature” and “Miscellaneous” - the central theme of this issue is divided into four chapters:

- Global Public Goods (GPGs) or Universal Commons: a concept adapted to today’s challenges

- The issue of GPG Governance at the heart of the issue of Financing GPGs

- Different approaches to financing GPGs

- Climate, oceans, financial stability: three “pure” global public goods, three approaches to governance and financing

The diverse contributions in this publication underscore both the necessity and the challenges of a comprehensive approach that engages all stakeholders, particularly in the absence of true global governance. However, this does not imply a stance of inaction. On the one hand, the recognition of the need for universal solidarity, and on the other hand, the multitude of pragmatic initiatives, have facilitated advancements by compensating for certain deficiencies in global governance. Nevertheless, progress remains sluggish. Hence, the financing of global public goods remains an evolving subject, and this issue represents a modest milestone in a pivotal journey for the future of our planet.