public investment management pim lessons jkim
TRANSCRIPT
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PublicInvestmentManagement(PIM)
For
Investing
to
Capably
Invest
JayHyung Kim
WorldBank,
PRMPS
ICGFMWinterConference,WashingtonDC
December911,2013
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Outline
2
WhyPublicInvestmentManagement(PIM)Matters?
EightMustHaveFeaturesforPIM:ADiagnosticTool
TheBanksPIMAgendaforInvestingtoCapablyInvest
FindingsfromPIMCountryDiagnoses
Tradeoffs
and
Sequence:
Strengthen
Appraisal
or
ImplementationFirst?
LessonsforPIMReforms
ComingSoon:ANewPIMIndicatorDrillDown(PIMforPPP)
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WhyPublicInvestmentManagement(PIM)Matters?
3
Publicinvestmentisjustifiedbyitsexpectedpositiveeffecton
economicgrowthandsocialwelfare.
Butthe
efficiency
of
public
investment
depends
on
the
effectivenessofPublicInvestmentManagement(PIM)which is
oftenweak.
PIMDiagnosticToolisaWBGproductthatanalyzesand
providesaplatform
for
country
dialogue
on
how
public
investmentmanagementcancontributetopolicyobjectives
anddevelopmentoutcomes.
OnceyoulearnthePIMDiagnosticTool,youwillbeableto:
Identifykey
aspects
of
eight
must
have
features
to
awell
functioningPIMsystem;
DescribekeyinitiativesandentrypointsforPIMreformin
developingcountries.
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EightMustHaveFeaturesforPIM:ADiagnosticTool
Source:
Rajaram,
Anand,
et
al.
(2010),
'Framework
for
Reviewing
Public
Investment
Efficiency',
WorldBankPolicyWorkingPaper,No.5397(August)),17.
Eightspecificfeaturesprovideadegreeofassurancethatthereareno
systemicloopholesthatwouldenablewastefulorcorruptdecisions.
Theyareconsideredtobemusthavefeatures,notwiththeintention
ofestablishingagoldstandardbuttoprovidealogicalandinternally
consistentsystem
that
even
alow
capacity
country
should
try
to
follow
toestablishbasicdisciplinesforprojectselectionandmanagement.
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TheBanksPIMAgendaforInvestingtoCapablyInvest
DiagnosticTool Policy Dialogue OperationalAssistanceQualitativeAssessmentTool:
PIMMust
Have
Features
QuantitativeAssessmentTool:
PIMIndicatorDrillDown
Identifyingneeds,
validation,peer to
peer
learning
Conferences
DiagnosticOperations
TechnicalAssistance
Operations
QualitativeAssessmentTool(PIMMustHaveFeatures):
Brazil/Chile/China/EastTimor/EquatorialGuinea/Korea/Latin
America/Lesotho/Mongolia/Nigeria/Peru/SierraLeone/Uganda/USA
/Vietnam/WestBalkans/Zambia/Zimbabwe(completed)
QuantitativeAssessmentTool(PIMIndicatorDrillDown):Cape
Verde/Ukraine(completed),Georgia/Jamaica/Thailand/Vietnam
(ongoing)
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Advanced PIM Countries
Strengthening appraisal
Establishing clearexpectations of newproject proposals
Building capacity across
government in thetechniques of projectappraisal
Independent reviews
Fully costed sector strategies
integrated with MTEF
Transparency
FindingsfromPIMCountryDiagnoses
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LessDevelopedPIMsystems
Strengtheningprojectplanning
Strategicguidance
Mediumtermorientation
Projectpreparation
Projectappraisal(costbenefitanalysis,otherappraisalanalyses)
Procurementreform
Internalandexternalaudit
AdvancedPIMCountries
Strengtheningappraisal
Establishingclearexpectations
ofnewprojectproposals
Buildingcapacityacross
governmentinthetechniques
of
project
appraisal Independentreviews
Demandsidestrengthening
Centerofexcellence
Transparency
FindingsfromPIMCountryDiagnoses
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AidDependentCountries
Strengtheningproject
implementation
Centralizedcapacityfor
procurementreform
Contractingoutof
capacity
Rationalizingand
reducingthenumberof
publicinvestmentunits
Improvingqualityof
nationalstrategic
plans
LessDevelopedPIMsystems
Strengtheningprojectplanning
Strategicguidance
Mediumtermorientation
Projectpreparation
Projectappraisal(costbenefitanalysis,otherappraisalanalyses)
Procurementreform
Internalandexternalaudit
AdvancedPIMCountries
Strengtheningappraisal
Establishingclearexpectations
ofnewprojectproposals
Buildingcapacityacross
governmentinthetechniques
of
project
appraisal Independentreviews
Demandsidestrengthening
Centerofexcellence
Transparency
FindingsfromPIMCountryDiagnoses
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Trade
offs
and
Sequence:
StrengthenAppraisalorImplementationFirst?
Reducingthenumberofpoorprojectsselectedforfunding
Improvingprojectexecutionmaygenerategreaterandfaster
benefits
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LessonsforPIMReforms
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Ownershipofassessmentisimportant.
Often,butnotalwaysMinistryofFinance(MoF)atthecenterofprocess
Developstheframeworkforinvestmentdecisionandhasoversightcontrolofpublicinvestment
Clarityof
roles
and
responsibilities
is
crucial
for
effective
PIM.
Coordinationacrosssectorsandlevelsofgovernment
TheroleofcentralguidelinesareaparticularlycriticalaspectofawellfunctioningPIM.
Monitoring
is
important
for
early
remedial
action. FinancialManagementInformationSystem(FMIS)
PublicTransparency&Accountability
PIMreformsareincentivecompatible.
Basedonasoundunderstandingofandtailoredtofitindividualcountrytrajectories,
circumstances
and
practices
Technicallyfeasible,relyingongoodenoughpractice
Carefullydesignedandsequenced
WellfunctioningPEMandbudgetingsystem,PPPandSOEgovernance,anddebt
managementsystem
are
also
important.
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ComingSoon:ANewPIMIndicatorDrillDown(PIMforPPP)
AnewPIMIndicatorDrillDown(PIMforPPP)isrecentlydevelopedby
PRMPStoprovideaunifiedframeworkforintegratingbothtraditional
governmentprojectimplementationandPPP.
Mostcountrieshavebeenmanagingpublicprivatepartnership(PPP)
projectsseparatelyfromtraditionalgovernmentprojects.
A principalkeytoinitiatingPPPprojectsistoestablishwhethera
governmentcanmaintainthesameleveloffiscalefficiencyand
sustainabilitythroughPPPsasthroughconventionalmeansof
implementation.
ThePIMforPPPtooldevelopsnewindicatorsandmeansofverificationto
assesstheeightmusthavefeaturesofPPPsystems,processes,and
institutions.
ThePIMforPPPtoolhelpsgovernmentsputinplacetheunifiedapproachfor
publicinvestmentthatenablesthemtoselectthepublicinvestmentoptionthat
deliversthebestvalueformoney,whetherbytraditionalbudgetfinancingor
PPP.
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ThankYou
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