Ukraine: Technical Assistance Report-Public Investment Management Assessment
IMF Staff Country Reports, December 4, 2019
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- Ukraine: Technical Assistance Report-Public Investment Management Assessment
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Bibliographic details
- Published: December 4, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513521367.002
Key findings and efficiency gap
- 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, ongoing institutional weaknesses, and effects of the conflict in the East could see this gap continuing to grow, absent concerted efforts to reverse recent trends.
- Some recent initiatives may bring about significant improvements.
Institutional assessment
- The institutional framework is weak in all areas.
- Effectiveness shortfall: Twelve institutions are ranked as ineffective, a further two are moderately effective, and only one institution scores a high rank in effectiveness.
- It is in terms of effectiveness of the institutions that the Ukrainian public investment management system really falls short.
Fiscal decentralization and public investment allocation
- Government policy on fiscal decentralization, as articulated in the government’s 2014 coalition agreement, has the potential to significantly impact the allocation of public investment.
Risks and drivers
- Persistent under-investment.
- Currently high stock of debt.
- Ongoing institutional weaknesses.
- Effects of the conflict in the East.
Implications and policy focus areas
- Reverse trends driving the efficiency gap through concerted reforms to public investment management.
- Strengthen institutional effectiveness across the public investment management system.
- Leverage fiscal decentralization policy to improve allocation of public investment, ensuring institutional capacity at central and local levels to manage changes.
- Build on recent initiatives that show potential to improve public investment efficiency.
Content in this bundle
- 1ukrea2019008