Public investment can be an important catalyst for economic growth, but the benefits of additional investment depend crucially on how it is managed. A significant share of the value of investment can be lost to inefficiencies in the public investment management processes. There is substantial scope for improving public investment efficiency across income groups, especially in low-income countries.

The International Monetary Fund’s Public Investment Management Assessment (PIMA) is a new framework which helps countries evaluate the strength of their public investment management practices. It evaluates the design and effectiveness of fifteen institutions that shape decision making at the three key stages of the public investment cycle: planning, allocation, and implementation. The PIMA aims at providing a comprehensive diagnostic of a country’s PIM system. Mr. Fabien Gonguet, economist in the Fiscal Affairs Department of the International Monetary Fund, presented the framework’s rationale, structure, benefits, and deliverables.