A diagnostic framework for assessing public investment management
AbstractThis 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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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5397.
Date of creation: 01 Aug 2010
Date of revision:
Investment and Investment Climate; Debt Markets; Public Sector Expenditure Policy; Housing&Human Habitats; Bankruptcy and Resolution of Financial Distress;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-21 (All new papers)
- NEP-PBE-2010-08-21 (Public Economics)
- NEP-PPM-2010-08-21 (Project, Program & Portfolio Management)
- NEP-REG-2010-08-21 (Regulation)
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- World Bank, 2011. "United Republic of Tanzania - Public Expenditure Review 2010," World Bank Other Operational Studies 2789, The World Bank.
- World Bank, 2010. "Uganda - Strengthening the Effectiveness of the Public Investment Program : Public Expenditure Review," World Bank Other Operational Studies 12331, The World Bank.
- Cem Dener & Joanna Alexandra Watkins & William Leslie Dorotinsky, 2011. "Financial Management Information Systems : 25 Years of World Bank Experience on What Works and What Doesn't," World Bank Publications, The World Bank, number 2297.
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