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THE IDEA AND CONCEPTION OF THE PUBLIC GOOD
DOI: http://dx.doi.org/10.14420/en.2017.4.1
Evgenii Aristov, PhD, Senior Lecturer of the Entrepreneurial Law, Civil and Arbitration Procedure Department of Perm State National Research University (PSU), e-mail: [email protected].
Abstract. The article is devoted to the research into the nature of the idea of
common good. The author examines the history of development of the concept of common good, studies and points out the goods serving to the benefit of all members and institutions of the relevant society as well as the goods for which it is impossible or too expensive to exclude individuals from enjoying; goods that are public by default.
Keywords: common good, public good, public interest, public goods, private good.
When researching into the nature of the idea of common good it is essential to address the applicable terms and definitions as a matter of priority.
Such terms as «common good» and «public good» or «public goods» are used in the academic literature with respect to this notion.
The researchers generally apply these definitions as identical or mostly similar.
Thus, Amitai Etzioni points out that «the common good is alternatively called «the public interest» or «public goods»»1.
Some scientists use the idea of public good in a little broader sense (but not crucially) than the idea of common good.
For example, Erik André Andersen and Birgit Lindsnaes mention that public goods comprise common goods, that is, the goods, which the free market economy is unable to purchase or maintain, but which are still desirable for most citizens2.
We shall hereinafter use these terms and definitions as synonymous.
1 Etzioni A. Common Good // The Encyclopedia of Political Thought, First Edition / Ed. by Michael T. Gibbons. New York: John Wiley & Sons, Ltd., 2015. P. 1 URL: https://icps.gwu.edu/sites/icps.gwu. edu/files/downloads/Common%20Good.Etzioni.pdf.
2 Andersen E.A., Lindsn&s B. Introduction // Towards New Global Strategies: Public Goods and Human Rights / Ed. by E.A. Andersen, B. Lindsnaes. Leiden: Martinus Nijhoff Publishers, 2007. P. 31.
The history of development of the concept of public good
In general terms, the notion of the common good originated over two thousand years ago in the writings of Plato, Aristotle, and Cicero.
The discussion over the concept of common good in the social and political life was for the first time shown in «Republic» by Plato, having resulted in multiple discussions up until now on what exactly is embraced in this idea1.
Some researchers construe this writing by Plato as insisting on the idea of common good as the aggregate of conceptual truths and principles. Such approach is in a manner contrary to the approach to interpretation of this concept by Aristotle, who considered virtue, justice and welfare to be the components of common good2.
In Catholic religious tradition with the long history of pursuing and assisting the common good, the common good is defined as the sum total of social conditions, which allow social groups and its members to reach their fulfillment. Thus, as Manuel Velasquez, Claire Andre, Thomas Shanks and Michael J. Meyer state5, common good consists primarily of having the social systems and institutions working in a manner that benefits all people, such as, for example, an accessible and affordable public health care system and effective system of public safety and security. Such systems have a powerful impact on the well-being of the members of society3.
At the present day, the concept and theory of public good evolved in a fundamental manner, both economically, politically and legally, and becomes increasingly important.
Upon having been the concept of comprehensive significance for establishing peace, safety and security, the term «public good» emerged in the theoretical economics in the middle of 1950s, which allowed to bring its main understanding out of philosophical and historical context4.
It should be borne in mind that the concept of public goods has changed over time, as this concept, like any other one, prevalent during any one era has tended to reflect the realities and policy experiences of its time5.
When it comes to the contribution of certain scientists to development of this context in terms of sociality of the state, one should give particular note to Paul Anthony Samuelson, American economist, Economics Nobel Laureate6.
1 Plato Republic // Collected works in 3 volumes. V.3 (Book 1). Moscow, 1971. URL: http://www.gyusin. ru/library/book/Platon_state.pdf.
2 PusserB. Reconsidering Higher Education and the Public Good: The Role of Public Spheres // Governance and the public good / Ed. by Edited by William G. Tierney. Albany: State University of New York Press, 2006. PP. 13, 22-24.
3 Velasquez M., Andre C, Shanks T., Meyer M.J. The Common Good // Markkula Center for Applied Ethics of Santa Clara University. URL: http://www.Scu.edu/ethics/ practicing/decision/commongood.html.
4 Andersen E.A., Lindsn&s B. Introduction // Towards New Global Strategies: Public Goods and Human Rights / Ed. by E.A. Andersen, B. Lindsnaes. Leiden: Martinus Nijhoff Publishers, 2007. P. 29.
5 Kaul I. Public goods: a positive analysis // Advancing Public Goods / Ed. by J.P. Touffut. Cheltenham: Edward Elgar, 2006. P. 13.
6 Andersen E.A., Lindsn&s B. Introduction // Towards New Global Strategies: Public Goods and Human Rights / Ed. by E.A. Andersen, B. Lindsnaes. Leiden: Martinus Nijhoff Publishers, 2007. P. 30.
Inge Kaul points out that the notion of public goods does not figure very prominently in today»s policy debates and, consequently, the notion of public good is given insufficient attention. However, the increasing number of contested global issues has drawn some renewed attention to this concept1.
Appeals to the common good have currently surfaced in discussions of business social responsibilities, issues related to environmental pollution degree, matters of investment in education, and discussions of the problems of crime and poverty, such discussion being frequently held in with reference to the statement that most fundamental social problems grow out of a widespread pursuit of purely individual interests2.
The scope of the idea of public goods
The basic elements of the present standard definition of the public goods were formulated in 1950s3.
The definitions of the term of «public good» that can be seen in the academic literature are rather similar and basing on the following two key aspects:
- lack of rivalry and competition between the consumers;
- non-excludability of individuals from consumption of such good.
As Randall G. Holcombe notes, a public good is a good that, once produced, can be consumed by an additional consumer at no additional cost. A second essential characteristic is sometimes added, specifying that consumers cannot be excluded from consuming the public good once it is produced4.
William D. Nordhaus notes that public goods are commodities for which the cost of extending the service to an additional person is zero and for which it is impossible or too expensive to exclude individuals from enjoying. In other words, public goods have the two key properties of non-rivalry and non-excludability of consumption. In this case, non-rivalry denotes that consumption of the public good by one person does not reduce the quantity of such public good available for consumption by another person. Non-excludability means that no person can be excluded from benefiting from the relevant public good5.
Common goods include the goods that serve all members of a given community and its institutions, and, in particular, comprising both goods that serve
1 Kaul I. Public goods: a positive analysis // Advancing Public Goods / Ed. by J.P. Touffut. Cheltenham: Edward Elgar, 2006. P. 14.
2 Velasquez M., Andre C., Shanks T., Meyer M.J. The Common Good // Markkula Center for Applied Ethics of Santa Clara University. URL: http://www.Scu.edu/ethics/ practicing/decision/commongood. html.
3 Kaul I. Public goods: a positive analysis // Advancing Public Goods / Ed. by J.P. Touffut. Cheltenham: Edward Elgar, 2006. P. 13.
4 Holcombe R.G. A Theory of the Theory of Public Goods // Review of Austrian Economics. 1997. Vol. 10. № 1. P. 1. URL: http://www.hayek.sk/wp-content/uploads/2012/12/The-Theory-of-Theory-of-Public-Goods.pdf.
5 Nordhaus W.D. Paul Samuelson and Global Public Goods (A commemorative essay for Paul Samu-elson). P. 3. URL: http://www.econ.yale.edu/~nordhaus/homepage/PASandGPG.pdf.
no identifiable particular group, as well as those that serve members of generations not yet born1.
Within the framework of political liberalism, the common good is determined as the sum of the private goods chosen by the citizens according to their utility functions. Meanwhile, the role of the state is to promote the well-being of citizens and protect their freedom2.
For welfare liberalism, the concept of the common good includes the realization of the personal good of citizens, leveling of starting conditions for equality of the citizens, equitable distribution of the freedoms and resources among all the individuals and provision of a universal welfare state functioning3.
Another important point about public goods is that private markets generally are unable to guarantee efficient production of public goods. Efficient production of public goods requires collective action to overcome the inability of private domain in this respect4.
Establishing and maintaining the common good require the cooperative efforts of lots of citizens. In this case, something can count as a public good only to the extent that it is a good to which all members of society have access5.
It is also noteworthy that the common good is not the outcome of a collective action, which results in more benefits for each actor than if they acted individually6.
Antonio Argandona notes that the common good cannot be defined in terms of a country's wealth, consumption or another economic variable, due to the fact that material goods are merely a part of the common good7.
Researchers distinguish three types of public goods, including the following ones:
- goods that cannot be made excludable, because doing so would be too expensive or impossible;
- goods that have deliberately been made public by design (an example of such good is, in particular, a system of basic education for all);
- goods that are public by default8.
1 Etzioni A. Common Good // The Encyclopedia of Political Thought, First Edition / Ed. by Michael T. Gibbons. New York: John Wiley & Sons, Ltd., 2015. P. 1. URL: https://icps.gwu.edu/sites/icps.gwu. edu/files/downloads/Common%20Good.Etzioni.pdf.
2 Argandona A. The common good. P. 6. URL: http://www.iese.edu/research/pdfs/DI-0937-E.pdf.
3 Argandona A. The common good. P. 6. URL: http://www.iese.edu/research/pdfs/DI-0937-E.pdf.
4 Nordhaus W.D. Paul Samuelson and Global Public Goods (A commemorative essay for Paul Samu-elson). P. 4. URL: http://www.econ.yale.edu/~nordhaus/homepage/PASandGPG.pdf.
5 Velasquez M., Andre C., Shanks T., Meyer M.J. The Common Good // Markkula Center for Applied Ethics of Santa Clara University. URL: http://www.Scu.edu/ethics/ practicing/decision/commongood. html.
6 Deneulin S., Townsend N. Public goods, global public goods and the common good // ESRC Research Group on Wellbeing in Developing Countries. P. 10. URL: http://www.welldev.org.uk/research/ workingpaperpdf/wed18.pdf.
7 Argandona A. The common good. P. 5. URL: http://www.iese.edu/research/pdfs/DI-0937-E.pdf.
8 Providing Global Public Goods: Managing Globalization. 25 Questions & Answers. P. 3. URL: http:// web.undp.org/globalpublicgoods/globalization/pdfs/ques-ans.pdf.
Difference and correlation between the idea of «public good» and «private good»
Insofar the society is not a mere aggregate of subjects, the common good therefore cannot be reduced to the particular good of its members, a good of the individual and the good of society being not coincident, but interrelated1.
According to Inge Kaul, people's well-being ultimately depends on the balance between private and public goods. Thus, the consumption of private goods undoubtedly has direct impact on the individual's well-being, though is much less sufficient, when the consumption of public goods is low or the public domain is denuded of some essential public goods, for instance, in case of war, high crime rate, communicable diseases or natural disasters2.
The properties of goods that generally can be considered as public do not always correspond to the standard definition given above. The main reason is that society can modify such features of public goods as excludability of consumption. Moreover, goods can change from private to public and backwards as a result of deliberate policy choice of strategies and solutions. In most cases, goods exist as social constructs largely determined by policy and other collective human actions3.
As Erik André Andersen and Birgit Lindsnaes mention, it is impossible to determine initially, which goods are public and which ones are private. It is due to the fact that the good per se shall be understood as a social construct created by people and state by implementing policy steps, laws and rules, as well as taking other acts, collective or private. Most goods, both public and private, are created by a certain society to satisfy its needs and requirements4.
As William D. Nordhaus emphasizes, there are many shades of «public-ness» of goods. According to this (and some other) researchers, there are pure public goods and impure public goods5.
Significance of the concept of public good in the modern context
Amitai Etzioni notes that the concept of the common good serves as a very significant organizing principle of civic and political life6.
1 Argandona A. The common good. P. 3. URL: http://www.iese.edu/research/pdfs/DI-0937-E.pdf.
2 Kaul I. Public goods: a positive analysis // Advancing Public Goods / Ed. by J.P. Touffut. Cheltenham: Edward Elgar, 2006. P. 14.
3 Kaul I., Mendoza R.U. Advancing the concept of public goods // Providing Global Public Goods: Managing Globalization / Ed. by I. Kaul, P. Conceicao, K. Le Goulven, R.U. Mendoza. Oxford: Oxford University Press, 2003. PP. 80-81. URL: http://web.undp.org/globalpublicgoods/globalization/pdfs/Kaul-Mendoza.pdf.
4 Andersen E.A., Lindsn&s B. Introduction // Towards New Global Strategies: Public Goods and Human Rights / Ed. by E.A. Andersen, B. Lindsnaes. Leiden: Martinus Nijhoff Publishers, 2007. P. 33.
5 Nordhaus W.D. Paul Samuelson and Global Public Goods (A commemorative essay for Paul Samu-elson). P. 4. URL: http://www.econ.yale.edu/~nordhaus/homepage/PASandGPG.pdf.
6 Etzioni A. Common Good // The Encyclopedia of Political Thought, First Edition / Ed. by Michael T. Gibbons. New York: John Wiley & Sons, Ltd., 2015. P. 1. URL: https://icps.gwu.edu/sites/icps.gwu. edu/files/downloads/Common%20Good.Etzioni.pdf.
The provision of public goods is a key element of the quality of life and environmental sustainability. The undersupply of such goods may affect prospects for the country's economic development, threatening global economic stability, peace and prosperity. The mechanisms for the effective delivery of public goods should therefore be central to any poverty eradication strategy1.
Moreover, the concept of public goods has long been a central concept of public economics2.
Most researchers in this issue stand to the point that the public goods can be either enhancing the population's welfare or the productivity of economy (but not both at the same time)3.
Birgit Lindsnaes believes the public good theory to be the perfect analytical tool to define the way to distribute resources among the citizens4.
References
1. Andersen E.A., Lindsn&s B. Introduction // Towards New Global Strategies: Public Goods and Human Rights / Ed. by E.A. Andersen, B. Lindsnaes. Leiden: Martinus Nijhoff Publishers, 2007.
2. Argandona A. The common good. URL: http://www.iese.edu/research/pdfs/ DI-0937-E.pdf.
3. Chatterjee S. Public Goods, Congestion, and Fiscal Policy: Do Consumption-
Based Instruments Matter? URL: http://www.brunel.ac.uk/_data/assets/pdf_
file/0019/82090/0907.pdf.
4. Deneulin S., Townsend N. Public goods, global public goods and the common good // ESRC Research Group on Wellbeing in Developing Countries. URL: http://www.welldev.org.uk/research/workingpaperpdf/wed18.pdf.
5. Etzioni A. Common Good // The Encyclopedia of Political Thought, First Edition / Ed. by Michael T. Gibbons. New York: John Wiley & Sons, Ltd., 2015. URL: https://icps.gwu.edu/sites/icps.gwu.edu/files/downloads/Common%20 Good.Etzioni.pdf.
6. Holcombe R.G. A Theory of the Theory of Public Goods // Review of Austrian Economics. 1997. Vol. 10. № 1. P. 1-22. URL: http://www.hayek.sk/wp-content/uploads/2012/12/The-Theory-of-Theory-of-Public-Goods.pdf.
1 Public goods for economic development / United Nations Industrial Development Organization. Vienna, 2008. P. 1. URL: https://www.unido.org/fileadmin/user_media/Publications/documents/Public%20 goods%20for%20economic%20development_sale.pdf>.
2 Deneulin S., Townsend N. Public goods, global public goods and the common good // ESRC Research Group on Wellbeing in Developing Countries. P. 4. URL: http://www.welldev.org.uk/research/ workingpaperpdf/wed18.pdf.
3 Chatterjee S. Public Goods, Congestion, and Fiscal Policy: Do Consumption-Based Instruments Matter? P. 1. URL: http://www.brunel.ac.uk/__data/assets/pdf_file/0019/82090/0907.pdf.
4 Lindsn&s B. The global and the regional outlook (How can global public goods be advanced from a human rights perspective?) // Towards New Global Strategies: Public Goods and Human Rights / Ed. by E.A. Andersen, B. Lindsnaes. Leiden: Martinus Nijhoff Publishers, 2007. P. 73.
7. Kaul I. Public goods: a positive analysis // Advancing Public Goods / Ed. by J.P. Touffut. Cheltenham: Edward Elgar, 2006. PP. 13-39.
8. Kaul I., Mendoza R. U. Advancing the concept of public goods // Providing Global Public Goods: Managing Globalization / Ed. by I. Kaul, P. Conceicao, K. Le Goulven, R.U. Mendoza. Oxford: Oxford University Press, 2003. PP. 78-111. URL: http://web.undp.org/globalpublicgoods/globalization/pdfs/Kaul-Mendoza.pdf.
9. Lindsn&s B. The global and the regional outlook (How can global public goods be advanced from a human rights perspective?) // Towards New Global Strategies: Public Goods and Human Rights / Ed. by E.A. Andersen, B. Lindsnaes. Leiden: Martinus Nijhoff Publishers, 2007. PP. 71-111.
10. Nordhaus W.D. Paul Samuelson and Global Public Goods (A commemorative essay for Paul Samuelson). URL: http://www.econ.yale.edu/~nordhaus/ homepage/PASandGPG.pdf.
11. Providing Global Public Goods: Managing Globalization. 25 Questions & Answers. URL: http://web.undp.org/globalpublicgoods/globalization/pdfs/ques-ans.pdf.- 2002.- 18 p.
12. Public goods for economic development / United Nations Industrial Development Organization. Vienna, 2008. 183 p. P. 1. URL: https://www.unido.org/ fileadmin/user_media/Publications/documents/Public%20goods%20for%20 economic%20development_sale.pdf>.
13. Pusser B. Reconsidering Higher Education and the Public Good: The Role of Public Spheres // Governance and the public good / Ed. by Edited by William G. Tierney. Albany: State University of New York Press, 2006. PP. 11-27.
14. Velasquez M., Andre C., Shanks T., Meyer M.J. The Common Good // Mark-kula Center for Applied Ethics of Santa Clara University. URL: http://www. Scu.edu/ethics/ practicing/decision/commongood.html.
