ABSTRACT
Cross-border externalities and international public goods have come to the fore in the development debate and in the debate on global governance like never before. This is because there is greater awareness of these issues, and also because advances in technology and trade have made them more important. At the same time, there is considerable soul-searching on development assistance and on the issue of “aid effectiveness.” There is a strong feeling that the aid-delivery mechanisms of the past three or four decades have not contributed as much to development and poverty reduction as they might have done. Relatedly, there is dwindling political support among rich country taxpayers for continuing traditional patterns of aid (aid fatigue), although there seems to be general support for helping those in need.
