Regional development

Public Investment

 

 

UN HABITAT III & 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.

  • 50% of public investment in OECD countries is directed to education and economic affairs.

  • Public investment funds dropped by almost 8% annually since 2010 on average in the OECD.

  • 72% of public investment takes place at the regional and local level (2012).


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. 
   

TOGETHER TOWARDS THE NEW URBAN AGENDA  

 

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.

 

 

PUBLIC INVESTMENT IN COLOMBIA

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

SUBNATIONAL 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

Effective Public Investment Key Data

 

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.