Burkina Faso: Selected Issues
IMF Staff Country Reports, December 22, 2016
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- Burkina Faso: Selected Issues
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Bibliographic details
- Published: December 22, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475562590.002
Key findings on public investment scaling-up
- The paper examines the impact of scaled-up public investment in Burkina Faso.
- “Big-push” investment efforts, while designed to accelerate growth, are likely to run up against significant absorption-capacity constraints.
- These absorption-capacity constraints will diminish the efficiency of investment spending and result in lower public capital accumulation and productivity growth than under a more measured approach.
- The empirical evidence from the experience of many countries suggests that the results of aggressive scaling-up initiatives are mixed.
Implications for policy and planning
- Large, rapid increases in public investment can face significant absorption-capacity constraints that reduce investment efficiency.
- A more measured approach to public investment scaling-up is implied to yield higher public capital accumulation and stronger productivity growth than aggressive “big-push” efforts.
- Given mixed cross-country evidence, careful assessment of absorption capacity and gradual scaling tailored to institutional and implementation capabilities is indicated by the analysis.
Subject classification and keywords
- Subject: Civil service, Expenditure, Labor, Public employment, Public investment spending, Wage adjustments, Wages
- Keywords: bill in Burkina Faso, Civil service, CR, GDP ratio, government, investment, investment efficiency, investment project, investment scaling-up, ISCR, Ivoirian authorities, pay, Public employment, Public investment spending, Sub-Saharan Africa, sustainability risk, Wage adjustments, wage bill, Wages, West Africa
Content in this bundle
- Burkina Faso: Selected Issues; IMF Country Report No. 16/391, November 30, 2016