A Diagnostic Framework for Assessing Public Investment Management
This paper provides a pragmatic and objective diagnostic approach to the assessment of public investment management systems for governments. Since weaknesses in public investment management can negate the core argument that additional fiscal space...
| Main Authors: | , , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100809092806 http://hdl.handle.net/10986/3881 |
| Summary: | This paper provides a pragmatic and
objective diagnostic approach to the assessment of public
investment management systems for governments. Since
weaknesses in public investment management can negate the
core argument that additional fiscal space allocated to
public investments could enhance future economic prospects,
attention to the processes that govern public investment
selection and management is critical. The paper begins with
a description of eight key "must-have" features of
a well-functioning public investment system: (1) investment
guidance, project development, and preliminary screening;
(2) formal project appraisal; (3) independent review of
appraisal; (4) project selection and budgeting; (5) project
implementation; (6) project adjustment; (7) facility
operation; and (8) project evaluation. The emphasis is
placed on the basic processes and controls (linked at
appropriate stages to broader budget processes) that are
likely to yield the greatest assurance of efficiency in
public investment decisions. The approach does not seek to
identify best practice, but rather to identify the
"must have" institutional features that would
address major risks and provide an effective systemic
process for managing public investments. The authors also
develop a diagnostic framework to assess the main stages of
the public investment management cycle. In principle, the
identification of core weaknesses will allow reforms to
focus scarce managerial and technical resources where they
will yield the greatest impact. In addition, the framework
is intended to motivate governments to undertake periodic
self-assessments of their public investment systems and
design reforms to enhance the productivity of public investment. |
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