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WHY THIS PRINCIPLE?

To link investment to specific needs of each region or locality
Public investment choices should be linked to a development strategy based on an assessment of the potential opportunities for, and impediments to, growth in each region. Investment strategies should be results-oriented, realistic and well-informed, and forward looking. The investment mix will inevitably vary among urban, rural or mixed regions to reflect the specificities and assets of different territories – and if they lead or lag in terms of growth.

To help sectors work together for common aims
Investments in both 'hard' and 'soft' infrastructure at the regional level are needed to maximise potential for long-term growth. It is thus important to seek complementarities and reduce conflict among sectoral strategies. Such complementarities often need to be constructed and combined into integrated strategies.

To invest on the basis of well-informed strategies
Good data can support good decisions. Governments should encourage the production of data at the right territorial scale to inform investment strategies and produce evidence for decision making.

IN PRACTICE

• Mobilise local and regional knowledge to design public investment strategies.
  
  
• Seek complementarities among sector strategies via inter-departmental/ministerial committees and programmes, harmonisation of programme rules or joint investment pools across public agencies/ministries.
  
  
• Review policies at an early stage to ensure territorial issues are adequately considered.
  
  
• Generate and use spatially-relevant data for investment planning. 

PITFALLS TO AVOID

• Copy another region’s strategy without adaptation to regional social and economic development needs.
  
  
• Elaborate a vague investment strategy that doesn't clarify priorities.
  
  
• Ignore the positive or negative impacts of public investments from one policy area to another.
  
  
• Plan investments ad hoc and outside of a particular strategy.

GOOD PRACTICES

‌‌‌‌	See real life examples on how countries have been putting this principle into practice. Read more

 COUNTRY PROFILES

 SELF ASSESSMENT QUESTIONS