Making Public Investment More Efficient

Policy Papers ◽  
2015 ◽  
Vol 2015 (3) ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Social Impact ◽  
Public Investment ◽  
Public Capital ◽  
Social Infrastructure ◽  
Capital Input ◽  
Advanced Economies ◽  
Economic Infrastructure ◽  
Efficiency Gap

Public investment supports the delivery of key public services, connects citizens and firms to economic opportunities, and can serve as an important catalyst for economic growth. After three decades of decline, public investment has begun to recover as a share of GDP in emerging markets (EMs) and low income developing countries (LIDCs), but remains at historic lows in advanced economies (AEs). The increase in public investment in EMs and LIDCs has led to some convergence between richer and poorer countries in the quality of and access to social infrastructure (e.g., schools and hospitals), and, to a lesser extent, economic infrastructure (e.g., roads and electricity). However, the economic and social impact of public investment critically depends on its efficiency. Comparing the value of public capital (input) and measures of infrastructure coverage and quality (output) across countries reveals average inefficiencies in public investment processes of around 30 percent. The economic dividends from closing this efficiency gap are substantial: the most efficient public investors get twice the growth “bang” for their public investment “buck” than the least efficient.

scholarly journals Assessing the effect of public capital on growth: An extension of the World Bank Long-Term Growth Model

2019 ◽  
Vol 3 (1) ◽  
pp. 22
Author(s):  
Sharmila Devadas ◽  
Steven Pennings
Keyword(s):  
Growth Model ◽  
Low Income ◽  
Capital Stock ◽  
Public Investment ◽  
Public Capital ◽  
Low Income Countries ◽  
The World ◽  
A Share

To analyze the effect of an increase in the quantity or quality of public investment on growth, this paper extends the World Bank’s Long-Term Growth Model (LTGM), by separating the total capital stock into public and private portions, with the former adjusted for its quality. The paper presents the LTGM public capital extension and accompanying freely downloadable Excel-based tool. It also constructs a new infrastructure efficiency index, by combining quality indicators for power, roads, and water as a cardinal measure of the quality of public capital in each country. In the model, public investment generates a larger boost to growth if existing stocks of public capital are low, or if public capital is particularly important in the production function. Through the lens of the model and utilizing newly-collated cross-country data, the paper presents three stylized facts and some related policy implications. First, the measured public capital stock is roughly constant as a share of gross domestic product (GDP) across income groups, which implies that the returns to new public investment, and its effect on growth, are roughly constant across development levels. Second, developing countries are relatively short of private capital, which means that private investment provides the largest boost to growth in low-income countries. Third, low-income countries have the lowest quality of public capital and the lowest efficient public capital stock as a share of GDP. Although this does not affect the returns to public investment, it means that improving the efficiency of public investment has a sizable effect on growth in low-income countries. Quantitatively, a permanent 1 ppt GDP increase in public investment boosts growth by around 0.1–0.2 ppts over the following few years (depending on the parameters), with the effect declining over time.

scholarly journals Covid-19 and inequality: developing an age-friendly strategy for recovery in low income communities

2020 ◽  
Vol 21 (4) ◽  
pp. 271-279
Author(s):  
Tine Buffel ◽  
Patty Doran ◽  
Mhorag Goff ◽  
Luciana Lang ◽  
Camilla Lewis ◽  
...  
Keyword(s):  
Low Income ◽  
Urban Areas ◽  
Social Impact ◽  
Later Life ◽  
Social Infrastructure ◽  
Community Based Interventions ◽  
Content Type ◽  
Urban Neighbourhoods ◽  
The Social ◽  
The Impact

Purpose This paper aims to explore the social impact of the COVID-19 pandemic, focusing on issues facing older people living in urban areas characterised by multiple deprivation. Design/methodology/approach The paper first reviews the role of place and neighbourhood in later life; second, it examines the relationship between neighbourhood deprivation and the impact of COVID-19; and, third, it outlines the basis for an “age-friendly” recovery strategy. Findings The paper argues that COVID-19 is having a disproportionate impact on low-income communities, which have already been affected by cuts to public services, the loss of social infrastructure and pressures on the voluntary sector. It highlights the need for community-based interventions to be developed as an essential part of future policies designed to tackle the effects of COVID-19. Originality/value The paper contributes to debates about developing COVID-19 recovery strategies in the context of growing inequalities affecting urban neighbourhoods.

scholarly journals STRATEGI PENGEMBANGAN PARIWISATA LOKAL

2017 ◽  
Vol 3 (1) ◽  
Author(s):  
Ade Irma Suryani
Keyword(s):  
Rural Areas ◽  
Substantial Contribution ◽  
Social Infrastructure ◽  
The Core ◽  
Tourism Sector ◽  
Subsequent Application ◽  
Tourism Activity ◽  
Economic Infrastructure ◽  
Oil Sector

Development of the tourism sector is expected to provide benefits to the community, because the tourism sector is one of the sectors of economic development. Tourism activity is one of the non-oil sector is expected to provide a substantial contribution to the economy Negara.Strategis pengebangan tourism in rural areas, namely by taking into account the advice and the existing infrastructure and the application of the stepping tourism. Tourism facilities can be divided into three parts, namely the principal means of tourism, tourism complementary means and means of supporting tourism. Infrastructure is divided into two parts, namely economic infrastructure and social infrastructure. And subsequent application of Sapta charm on attractions, Sapta charm which contains seven elements that define a good image of the attraction yaitunya: Safe, Orderly, Clean, Cool, Beautiful, and Suave and memories, his presence is very deeply felt important and it was time needed and not only as a basic requirement of tourists, but also as a measure to improve the quality of tourism. Pelaksananaan stepping is at the core of the program in improving the community and tourism awareness is a requirement in tourism development efforts towards the better.

Infrastructure Investment and Growth in Developing Countries: Does the Type of Contract Matter?

2012 ◽  
Vol 4 (2) ◽  
pp. 139-152
Author(s):  
Marco Percoco
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Public Investment ◽  
Private Investment ◽  
Public Private Partnerships ◽  
Low Income Countries ◽  
Extensive Literature ◽  
Infrastructure Projects ◽  
Private Participation

The aim of this article is to verify whether public investment in infrastructure is effective in terms of growth. While there is extensive literature analysing the effect of public capital stock on development and growth, comparatively less attention has been devoted to the contractual mechanisms characterising this investment. In this article, we focus on private participation in infrastructure projects through forms of public–private partnerships and verify whether the use of such contracts promotes economic growth. By analysing the performance of 81 developing countries over the period 1991–2008, we found that public–private partnerships are particularly relevant in terms of growth for high-income countries, whereas we could not find significant effect for low-income countries. We interpret this result as evidence of the relevance of better institutions, especially in terms of quality of regulation and rule of law, for attracting private investment in infrastructure projects and then for promoting growth.

scholarly journals Efficiency-Adjusted Public Capital, Capital Grants, and Growth

2017 ◽  
Vol 17 (168) ◽  
Author(s):  
Ernesto Crivelli
Keyword(s):  
Economic Growth ◽  
Recent Literature ◽  
Public Investment ◽  
Public Capital ◽  
Potential Growth ◽  
Investment Capital ◽  
Management Institutions ◽  
The Impact ◽  
The Relationship

Recent literature has explored the relationship between efficiency-adjusted public capital and economic growth. A debate on whether capital grants, and especially EU funds actually contribute to growth has gained prominence lately. This paper empirically assesses the relationship between the quality of public investment, capital grants, and growth in a sample of 43 emerging and peripheral economies over 1991-2015. To this end, the contribution of public capital to growth is estimated using efficiency-adjusted public capital stock series, constructed reflecting the quality of public investment management institutions. In addition, the determinants of effective public investment are analyzed. The results suggest that capital grants contribute positively to effective public investment, and the latter is significant in explaining variations in economic growth. Finally, the paper illustrates the impact of raising EU funds absorption on potential growth in emerging and peripheral EU countries.

scholarly journals Ukraine

2019 ◽  
Vol 2019 (356) ◽  
Author(s):  
Keyword(s):  
Capital Stock ◽  
Public Investment ◽  
Emerging Market ◽  
Public Capital ◽  
Allocation Of Resources ◽  
Investment Management ◽  
Emerging Market Countries ◽  
Recent Trends ◽  
High Level ◽  
Efficiency Gap

Ukraine’s public capital stock has been on a declining path over the last 20 years. Having started the period at a relatively high level (99 percent of GDP in 1996), it now ranks amongst the lowest of its comparator countries (56 percent in 2013). Evidence as to the reasons for the deterioration point to significant and persistent weaknesses in the institutional framework surrounding public investment management, inefficient allocation of resources to productive public investment and high levels of perceived corruption. Ukraine currently has an efficiency gap of around 32 percent, which ranks it below average amongst emerging market countries and other comparators. Persistent under-investment, the currently high stock of debt, and ongoing institutional weaknesses, coupled with effects of the conflict in the East could see this gap continuing to grow, absent concerted efforts to reverse recent trends.

scholarly journals Marketing at the Bottom of the Pyramid: Serving, and in the Service of Low-Income Consumers

2018 ◽  
Vol 14 (2) ◽  
pp. 35-40 ◽  
Author(s):  
Lisa Pizzagalli ◽  
Akshit Sharma ◽  
Dana-Nicoleta Lascu
Keyword(s):  
Low Income ◽  
Marketing Strategies ◽  
Theory And Practice ◽  
Bottom Of The Pyramid ◽  
Comprehensive Review ◽  
Advanced Economies ◽  
The Subject ◽  
Subsistence Markets ◽  
Low Income Consumers

Most academic studies in marketing have focused on advanced economies and fast-developing, large emerging markets (Sharma & Lascu, 2018). Until recently, only a few marketing studies have addressed subsistence markets; yet, there are over 4 billion bottom-of-the-pyramid (BOP) consumers living below less than 1.25 dollars a day in underserved areas worldwide (Kaplinsky, 2011; Sharma & Lascu, 2018). The present study attempts to bridge the gap in the literature by providing a comprehensive review of the theory and practice addressing the subject of marketing at the bottom of the pyramid, focusing on marketing approaches to BOP consumers that both efficiently sell products to this market and enrich their quality of life. The study suggests that selling products to the bottom of the pyramid may be profitable, but companies must be creative in their approach to formulating marketing strategies in order to engage BOP consumers and earn a profit. Marketers should also cater to BOP consumers’ needs in order to foster strong and enduring relationships.

386: Health Related Quality of Life in Low-Income, Uninsured Men with Prostate Cancer

2004 ◽  
Vol 171 (4S) ◽  
pp. 101-102
Author(s):  
Tracey L. Krupski ◽  
Arlene Fink ◽  
Lorna Kwan ◽  
Sarah Connor ◽  
Sally L. Maliski ◽  
...  
Keyword(s):  
Quality Of Life ◽  
Prostate Cancer ◽  
Low Income ◽  
Health Related Quality ◽  
Related Quality ◽  
Health Related

Access to Technology for Communication Improves Health-Related Quality of Life for Low Income Families after NICU Discharge:

PEDIATRICS ◽  
2016 ◽  
Vol 137 (Supplement 3) ◽  
pp. 491A-491A
Author(s):  
Nicole I. Flores ◽  
Philippe Friedlich ◽  
Mandy Belfort ◽  
Douglas L. Vanderbilt ◽  
Roberta Williams ◽  
...  
Keyword(s):  
Quality Of Life ◽  
Low Income ◽  
Health Related Quality ◽  
Access To Technology ◽  
Related Quality ◽  
Health Related ◽  
Low Income Families

Building research capacity and capabilities in Fiji: are we there yet?

2020 ◽  
Vol 21 (5) ◽  
pp. 265-271
Author(s):  
Jyotishna Mudaliar ◽  
Bridget Kool ◽  
Janice Natasha ◽  
Judith McCool
Keyword(s):  
Low Income ◽  
Research Capacity ◽  
Research Knowledge ◽  
Research Skills ◽  
Research Findings ◽  
Access And Quality ◽  
The University ◽  
Local Investigator ◽  
Research Capacity Development

Introduction: A barrier to local investigator-led research in low income settings, is the limited availability of personnel with appropriate research skills or qualifications to conduct the type of research required for evidence-informed policy making to improve access and quality of health care. In response to this, Fiji National University’s College of Medicine, Nursing and Health Sciences in Fiji, collaborated with academics based at the University of Auckland, New Zealand to deliver a series of research capacity development workshops in Fiji. Methods: Participants who attended any of the nine workshops (n=123) were contacted via email to take part in a brief survey regarding their perceptions of the effectiveness of the research capacity building workshops. Of the possible 123 participants, 80% (n=76) completed the questionnaire.  Results: Findings demonstrate that the majority of participants reported that they had gained research skills from the workshops (75%) including proposal development skills (68%) and knowledge of appropriate research methods (59%). Furthermore, 70% agreed that the workshops built their research confidence.  Since attending a workshop, 18% of respondents had successfully applied and received funding for research grants and/or fellowships.  Barriers to conduct research included workload (75%), lack of research knowledge, experience or skills (51%), and lack of institutional support (41%). Suggestions for future workshops included: more focus on data analysis, regular courses rather than ‘one offs’, and preparation of research findings (e.g. publications). Conclusion: Our findings indicate that research workshops of this nature may increase individual research capabilities but sustained, locally led initiatives, backed by institutional and supplementary technical support are essential.

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