Public Information Notice: IMF Executive Board Holds Follow Up Meeting on Public Investment and Fiscal Policy
May 27, 2005

Public Investment and Fiscal Policy - Summaries of the Pilot Country Studies, April 1, 2005

Government Guarantees and Fiscal Risk, April 1, 2005

Public Information Notice: IMF Executive Board Holds Informal Seminar on Public Investment and Fiscal Policy, April 24, 2004

Public Investment and Fiscal Policy, March 12, 2004

Public-Private Partnerships, March 12, 2004

Public Investment and Fiscal Policy—Lessons from the Pilot Country Studies

Prepared by the Fiscal Affairs Department
In consultation with other departments, the World Bank, and the Inter-American Development Bank

Approved by Teresa Ter-Minassian

April 1, 2005

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  Executive Summary
I.   Introduction
II.   Infrastructure Spending, Public Investment, and Economic Growth
III.   The Analytical Framework
  A.   How Much Infrastructure Investment is Needed?
  B.   How to Increase Infrastructure Investment
      Increasing private investment in infrastructure
      Increasing public investment in infrastructure
  C.   Improving Institutions for Investment Planning and Project Evaluation
IV.   The Coverage of Fiscal Indicators and Targets
  A.   Background
  B.   Results from the Pilot Country Studies
  C.   The Way Forward
V.   Public-Private Partnerships
  A.   Institutional Requirements
  B.   Coverage of PPPs
  C.   Risk Transfer, Government Guarantees, and Fiscal Risk
  D.   Accounting and Disclosure of PPPs and Incorporation in DSA
VI.   Conclusions
VII.   Issues for Discussion
Table 1. Infrastructure Indicators, 1990-2002
Table 2. Public and Private Investment, 1994-2003
Table 3. Investment in Infrastructure Projects with Private Sector Participation, 1989-2003
Table 4. The Contribution of Public Investment Compression to Fiscal Adjustment
Table 5. Correlation Coefficients Between Ratio of Public Investment to GDP and Selected Macroeconomic Variables, 1994-2003
Table 6. Perceptions by Enterprises of Constraints on Business
Table 7. Possible Policy Instruments to Help Increase Total Infrastructure Investment
Table 8. Business Environment Indicators, 2004
Table 9. Assessment of the Commercial Orientation of Public Enterprises
Figure 1. Contemporaneous Correlation between Private and Public Investment, 1994-2003
Figure 2. The Quality of Governance and Private Investment
Box 1. India and Brazil: Challenges for Increasing Public Saving in a Federation
Box 2. Highlights of Country Analyses of Public Enterprises
Box 3. Revised Criteria on Assessing Fiscal Risks of Public Enterprises
Box 4. Comprehensive Disclosure Requirements for PPPs
Appendix Tables
Table 10. Fiscal Policy and Debt Profiles
Table 11. Country Experiences with Institutions of Investment Planning and Evaluation