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.
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.
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).
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.