Regional development

Public Investment

 

 

THE NEW URBAN AGENDA

For the implementation of the New Urban Agenda, the OECD suggests attention being paid to adequate investment and financing mechanisms for cities of all sizes in infrastructure and service provision. This webpage highlights the main issues and challenges governments face when undertaking public investment projects.

 

THE ISSUES

  • Public investment shapes choices about where people live and work, influences the nature and location of private investment, and affects quality of life.

  • Public investment can boost growth and provide the right infrastructure to promote private investment.

  • Poor investment choices wastes resources, erodes public trust and limits growth opportunities.

 

IN FIGURES

  • Public investment represents 15% of total investment (public and private) in the OECD.

  • Public investment represents 3% of GDP in the OECD.

  • 60% of public investment in OECD countries is directed to education and economic affairs/transportation.

  • Public investment dropped by 1.3% annually in real terms from 2008 to 2016 in the OECD.

  • 57% of public investment takes place at the regional and local level (2016).


CHALLENGES AHEAD 

  • Public investment is under pressure in most OECD countries following fiscal consolidation strategies.

  • Under-investment by local government is contributing to an "infrastructure gap".

  • Countries are facing high maintenance costs due to past infrastructure investments.

  • Climate change and population growth increases the need for renewed infrastructure.

  • National, regional and local governments will need to invest more efficiently.

  • Local governments can lack the know-how on how to make the best use of investments.

  • The impact of public investment on growth depends significantly on the quality of governance. 
   

PRINCIPLES ON PUBLIC INVESTMENT

‌‌investment toolbox circles icon 56x56 1‌‌  

12 Principles to help governments assess the strengths and weaknesses of their public investment capacity.

 

 

RETHINKING REGIONAL DEVELOPMENT POLICY-MAKING

‌‌‌‌   This report identifies cross-cutting lessons to help policy-makers manage common trade-offs when designing public expenditure and investment programmes.  

MULTI-LEVEL GOVERNANCE REFORMS IN OECD COUNTRIES

‌‌‌‌   This report provides an overview of “multi-level governance” reforms in OECD countries.   

INVESTMENT IN COLOMBIA

‌‌‌‌   This study examines the multi-level governance framework for public investment in Colombia with indicators to measure its progress.  

SUB-NATIONAL GOVERNMENTS AROUND THE WORLD

‌‌‌‌   A first contribution to the Global Observatory on Local Finances. A joint project between the OECD and UCLG.  

INVESTING TOGETHER

‌‌Effective Public Investment Investing Together‌‌   An overview of the coordination and capacity challenges that all levels of government face for public investment.  

KEY DATA

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Key data on sub-national governments in terms of finances

 

PUBLIC-PRIVATE PARTNERSHIPS

‌‌PPP‌‌   Public-Private Partnerships can be a cost effective way to deliver public services. The OECD has developed principles to guide best practice in this area.