ABSTRACT
This chapter is about the global dimension of public finance. It also considers the fiscal problems that arise at a global level. These problems are of especial importance at a time of austerity, but risk being lost from sight as national governments concentrate on domestic priorities. The chapter focuses on a world problem of pressing importance: the financing of the achievement of the Millennium Development Goals (MDGs). 2012 Millennium Development Goals Report highlighted several milestones, three important MDG targets have been met well ahead of the target date of 2015. National governments provide Official Development Assistance (ODA). It is necessary to add ODA to a standard treatment of the government policy choice problem. The chapter describes the simplest possible framework in which national governments raise taxes solely to finance provision of a public good. Burden-sharing should be discussed to consider the distribution of income within countries.
