Abstract:

In our century, the concept of public goods is associated with the phenomenon of globalization. The main characteristics of non-competition and non-exclusion in consumption have been used to define public goods in conventional public finance literature; however, rapid globalization entailed new approaches and new concepts in public finance literature. Global public goods became one of the contemporary focus of interest not only for public finance and economics but also for international relations and political science. Goods and services are considered as global public goods and services only when a certain requirement and criterion are satisfied. This requirement is about possessing publicity characteristics. The criterion is the sphere of influence involving countries and generations as a part of the areas benefiting from the offering of such goods. The method of financing and actors playing a role in financing is a noteworthy headline after definition of such goods as indicated by the relatively extensive coverage given compared to other fields in the global public goods literature. The most important problem encountered in financing these goods and services is the fact that main characteristic of lack of excludability in consumption experienced with public goods also applies to global public goods. There are still de world lacking a global authority having power to charge taxes at global level as the default financing method at national level is general financing. More often than not, it is observed that these goods are not financed based on the benefit received principle, instead, they are financed based on ability-to-pay principle

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