Posted by Eivind Tandberg
The IMF and other development institutions are involved in analysis and technical assistance related to public investment management in many different countries. The IMF’s new Public Investment Management Assessment tool (PIMA) has been applied in about 20 countries, and many countries are pursuing reforms to enhance the quality of their public investment.
One important consideration for countries that get involved in such efforts is to what extent structural and policy changes in public investment practices lead to tangible improvements, including more realistic cost estimates, less delays, and enhanced project benefits. A study from Norway, which has been working to improve its public investment framework for the last 15 years, indicates that such improvements do materialize but that this takes time.