Regional, rural and urban development

Recommendation of the OECD Council on Effective Public Investment Across Levels of Government

 

In 2012, OECD Member countries spent USD 1.17 trillion in direct public investment, representing 2.7% of OECD GDP.  Looking across the OECD area, sub-national governments manage around 72% of direct public investment– with notable variation among countries. If well managed, public investment represents a potentially growth-enhancing form of public expenditure.  However, poor investment choices and implementation not only waste limited public resources and erode public trust, but they may also hamper future growth opportunities.



The Principles on Effective Public Investment will help governments assess the strengths and weaknesses of their public investment capacity and set priorities for improvement.

 

The Principles group 12 recommendations into 3 pillars representing systemic multi-level governance challenges for public investment:


Pillar 1 addresses coordination and focuses on the different types of governance arrangements and incentives than can help coordination.

Pillar 2 highlights key public management capacities that should be present to bolster conditions for effective investment.


Pillar 3
focuses on the key framework governance conditions for public investment.

 

  Download the Recommendation

 

Background information

 
 

 

 

Investing Together: Working Effectively Across Levels of Government

Subnational Governments in OECD Countries: Key Data

Making the Most of Public Investment in a Tight Fiscal Environment

Regional development