Dabla-Norris, E; Brumby, J; Kyobe, A; Mills, Z & Papageorgiou, C (2010) ‘Investing in Public Investment: An Index of Public Investment Efficiency’

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In seeking to use resource wealth for increasing efficiency and equity in public spending (a main objective of Precept 9) there is a need for good decision making over the entire process chain, from design through to implementation. The Precept provides guidelines on the different components of the public investment management process.

 

The IMF paper recognizes the importance of scaling up investment, specifically in physical and social infrastructure, for sustained growth. However, in most developing countries there have been low returns to public and private investment. This is in part due to poor selection and implementation of projects. In turn a result of limited information, a lack of technical expertise, and leakage and waste of resources. In addressing these challenges the paper provides an index of the “efficiency of the public investment management process” (p. 3). The quality and efficiency of the investment process is measured across each stage: project appraisal, selection, implementation and evaluation. This index provides a tool for conducting policy-relevant diagnostics and analysis as well as fostering accountability and transparency in the sector.

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