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Public investment can be an important catalyst for Figure 1: Public Investment Efficiency Gap
economic growth, but the benefit of additional investment

Infrastructure Index (Output)

depends crucially on its efficiency. The average country loses frontier B
about 30 percent of the value of its investment to inefficiencies
30 percent
in their public investment processes (Figure 1). Improvements Efficiency
in public investment management (PIM) can help countries A C Gap
close up to two-thirds of that efficiency gap. The growth
dividend from doing so is substantial the most efficient
investors get twice the growth bang for their investment
buck than the least efficient investors. Public Capital (Input)

The IMFs new Public Investment Management Assessment

Figure 2: PIMA Framework
(PIMA) framework helps countries evaluate the strength of Planning
their PIM practices. The PIMA evaluates 15 institutions that 1. Fiscal Rules
2. National & Sectoral Planning

shape decision-making at the three key stages of the public 3. Central-Local Coordination
4. Management of PPPs
investment cycle (Figure 2): 5. Company Regulation

Planning sustainable investment across the public sector;

Implementing Allocating
Allocating investment to the right sectors and projects; 11. Protection of Investment 6. Multi-year Budgeting
12. Availability of Funding 7. Budget Comprehensiveness
and 13. Transparency of Execution 8. Budget Unity
14. Project Management 9. Project Appraisal

Implementing projects on time and on budget. 15. Monitoring of Assets 10. Project Selection

The PIMA provides the most comprehensive diagnostic of

a countrys PIM system. Compared with other PIM Figure 3: PIMA Results (Illustration)
diagnostics, the PIMA is: 15. Monitoring of
1. Fiscal Rules
2. National & Sectoral
Assets Planning
More comprehensive, bringing in elements related to
14.Project 3. Central-Local
Management Coordination

macro-fiscal frameworks, integration of investment 13.Transparency of 4. Management of

Execution PPPs
planning in medium-term budgeting;
12. Availability of 5. Company
Funding Regulation
More relevant to the full range of income groups,
11. Protection of 6. Multi-year
reflecting advanced practices in the areas of fiscal rules, Investment Budgeting

PPP oversight, and project appraisal and selection; and

7. Budget
10. Project Selection
Country Comprehensiveness
9. Project Appraisal 8. Budget Unity
Income level
More accessible, with country results presented in the World

form of summary charts with also include comparator

countries (Figure 3).

The findings of the assessment are set out in a concise report. The report estimates the efficiency of the
countrys public investment, outlines the relative institutional strengths and weaknesses, and provides practical
recommendations to enhance the efficiency and impact of public investment.
Find out more about the IMFs work on public investment at