Policy development and capacity building for geo-information provision

Yola Georgiadou
Associate Professor and Head of the Geoinformatics and Spatial Data Acquisition Division,
ITC, The Netherlands
georgiadou@itc.nl

Richard Groot
Academic Chair, Geoinformatics Management and Infrastructure
ITC, The Netherlands
groot@itc.nl
In Sandler’s (1998) words “technology has provided humankind with the means to monitor the earth and its atmosphere in novel ways: remote sensing satellites have identified holes in the stratospheric ozone layer; atmospheric observatories atop Mauna Loa on the Island of Hawaii record the accumulation of carbon dioxide, sulphur dioxide and other pollutants. With these technologies, we have become cognizant of goods (and bads) of a global and regional nature”.
The emergence into our consciousness of transnational and global bads – e.g. spread of infectious diseases, degradation of the global environment, loss of biodiversity, global financial volatility- has fueled the debate of how to reform the traditional, country-focused system of international development cooperation that has evolved over the past 50 years. Several researchers view many of today’s global crises as caused by underprovision of international public goods, or oversupply of global bads. They now argue for a correction of the underprovision through new international governance institutions and new mechanisms for the supply and financing of regional and global public goods. See Kanbur et al (1999), Kaul et al (1999), Ferroni (2000, 2001, 2002), Kaul (2001), Sandler (1998, 2001), Besley and Ghatak (2001), Stiglitz (1999a, b).
The wealth of recent research on (global) public goods provision does not start from scratch. It builds on the well-established traditional concept of a (national) public good, first mentioned by David Hume, and later introduced into economic theory by Paul Samuelson in the 50s. See Garrett (1992). However, recent global public goods research not only redefines the public goods concept in more relevant, global and practical terms. It also provides new insights for policy formulation related to the provision, ownership and financing strategies of regional and global public goods as well as a new lens through which to view the urgency for institutional, organisational and individual capacity building in the developing world. See e.g. GEF-UNDP (2000) for a global assessment of capacity building needs in biodiversity, climate change and land degradation at the institutional, organisational and individual level.
What are the authors’ interests in these issues? First, our institute (ITC) aims to operate as a node in an international knowledge network in Geo-information Science and Earth Observation. These knowledge fields are broadly recognised as essential in finding solutions for application domains of regional and global nature, such as (transboundary) water management, food security and biodiversity preservation, for disaster preparedness and for understanding of global change. Geospatial Data Infrastructures (GDI) are the intermediate mechanisms underpinning these application domains. GDIs encompass various components – fundamental data and technological, institutional, organisational, economic resources etc– that also exhibit public goods characteristics to a larger or lesser extent. Second, ITC is active in knowledge exchange aimed primarily at capacity building and institutional development for and in less developed countries (ITC, 2001). Hence, it is important to explore how recent developments in public goods theory can contribute (i) to a new taxonomy of the regional (and global) GDI resources underlying these application domains, (ii) to a more focused development of geo-information policy as well as (iii) to a better design of modalities for their provision through institutional, organisational and individual capacity building.
An overview of recent developments in public goods theory
Standard economic texts define public and private goods in terms of their position in a two dimensional continuum, described by the qualities of rivalry and excludability. Rights of ownership can be clearly attached to private goods. Hence they are excludable; they can be produced and distributed according to demand. They are also rival in consumption. One person’s enjoyment of the good may reduce or completely exhaust the good’s utility for others. Rights of ownership to private goods are transferred through market transactions against the payment of the good’s market price. Goods that can be purchased in a supermarket are examples of private goods. See Kaul et al (1999).
Public goods have the opposite properties. They are non-rival in consumption and non-excludable. Hence they elicit consumer behaviors that include the temptation for free-riding – enjoying the benefit for free once the good has been provided by somebody else – as well as unwillingness from the consumers’ side to reveal their levels of demand. Public goods suffer from underprovision because markets are unable to supply non-excludable goods. They are labeled market failures and are set aside for government intervention e.g. through tax incentives for businesses or direct government action. Typical examples of public goods at the national level include public health and defense. Few goods qualify as purely private or purely public. Many have mixed properties. A club good for example has non-rival properties but can be excluded through a membership and fee regime. Private TV broadcasting is a club good. Private and public goods are closely related to the notion of externality. Externalities are spill-overs of private or public activities into the public domain.
Fig. 1: A modern definition of public goods in terms of three principal dimensions