GOVERNING PUBLIC INVESTMENT

The governance of public investment is complex because it is a shared responsibility across an increasing number of actors and levels of government. More than two-thirds of public investment is conducted at the sub-national government level in OECD countries, i.e. by states, regions, provinces, and municipalities.

Public investment figures

• Public investment represents 15% of total investment (public and private) in the OECD
  
  
• Public investment represents 2.7% of OECD GDP
  
  
• On average 50% of public investment in OECD countries is directed to education and economic affairs
  
  
• At the sub-national level, more than one-third of sub-national investment in the OECD area is allocated to economic affairs
  
  
• Public investment funds dropped by almost 8% annually since 2010 on average in the OECD.

See more information on public investment and sub-national governments.

OECD RECOMMENDATION

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.

INVESTING TOGETHER

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An overview of the coordination and capacity challenges that all levels of government face for public investment.

MAKING THE MOST OF PUBLIC INVESTMENT IN THE EASTERN SLOVAK REPUBLIC

‌‌	This case study looks at the main obstacles to effective public investment in the Eastern Slovak Republic.

KEY DATA

CREATING CONDITIONS FOR PUBLIC INVESTMENT

‌‌	Identifying capacities and providing practical guidance for assessing and strengthening these capacities in multi-level governance.

PUBLIC INVESTMENT IN A TIGHT FISCAL ENVIRONMENT

‌‌	Lessons learned and good practices from the management of stimulus packages that were implemented in 2008-09.

INSTITUTIONAL AND FISCAL RELATIONS ACROSS LEVELS OF GOVERNMENT

‌‌	An overview of the relations across levels of government that enable policymakers identify good practices for national growth, equity and stability.

CREATING FISCAL SPACE FOR PUBLIC INVESTMENT

‌‌	Exploring the institutional ability of sub-national governments to influence their fiscal space for public investment.