20220707-IMF-PIMA_Handbook_Public_Investment_Management_Assessment,_1st_Edition_247页_6mb

PIMA Handbook Summary

Core Content

The Public Investment Management Assessment (PIMA) Handbook is a comprehensive and standardized framework for evaluating public investment management (PIM) and infrastructure governance in countries at all levels of economic development. It is designed to help country authorities, IMF staff, and other development partners understand and improve how public investment is managed.

The handbook outlines the three key stages of the public investment cycle:

• Planning: Ensuring fiscal sustainability, coordination, and rigorous appraisal of projects.
• Allocation: Using comprehensive, unified, and objective criteria to direct investment to the most productive sectors and projects.
• Implementation: Guaranteeing timely, cost-effective, and transparent execution of projects.

Each stage is assessed through 15 institutions or practices, analyzed along three dimensions, resulting in 45 dimensions overall. These dimensions are used to score each institution, with three possible scores assigned per dimension. The average of the three dimensions within an institution determines its score.

PIMA also evaluates cross-cutting enabling factors:

• Legal and regulatory framework
• Information technology (IT) systems
• Staff capacity

These factors influence the effectiveness of infrastructure governance institutions and are crucial for identifying reform priorities.

Main Points

Key Findings from PIMAs

• Institutional design scores are generally higher than effectiveness scores, indicating a gap between policy and practice.
• Low-income developing countries (LIDCs) and emerging market economies (EMEs) show the largest gaps between design and effectiveness.
• Allocation and implementation stages are the weakest in terms of effectiveness, especially in asset selection, monitoring, and maintenance.
• Advanced economies (AEs) have stronger infrastructure governance institutions than EMEs and LIDCs, but still have room for improvement.

Efficiency Assessment

• PIMA uses capital stock per capita and outputs/outcomes to evaluate efficiency.
• Efficiency gaps are calculated by comparing a country's performance to the most efficient country with the same level of capital stock per capita.
• Jordan has an efficiency gap of 21%, showing significant potential for improvement if PIM were as efficient as in the most efficient countries.

Data and Methodology

• PIMA relies on standard databases maintained by the IMF, including data on investment trends, capital stock, and public infrastructure outputs.
• Data includes:
  • Investment and capital stock by sector and function
  • Comparison with macroeconomic and fiscal variables
  • PPP investment and capital stock
  • Corruption indices
• Qualitative assessments are also included for cross-cutting factors like IT systems and legal frameworks.

PIMA Scope

• PIMA covers public investment in physical infrastructure and capital spending.
• It focuses on nonfinancial assets as defined in the GFSM 2014.
• The framework includes specific practices such as project appraisal, maintenance funding, and procurement.

Key Institutions and Dimensions

Key Recommendations

• Strengthen institutional design and effectiveness to ensure reforms are implemented.
• Improve project appraisal and selection processes to ensure investments align with national priorities and deliver maximum social and economic returns.
• Ensure adequate funding for maintenance and implementation.
• Enhance IT systems and legal frameworks to support transparency and accountability.
• Promote public-private partnerships (PPPs) and private sector participation in a way that minimizes risks to public finances.

Conclusion

The PIMA framework is a valuable tool for assessing and improving public investment management. It provides a structured, data-driven approach to understanding how public investment is planned, allocated, and implemented. The handbook is intended to guide users in applying the PIMA methodology and using its findings to inform policy and institutional reforms. It is currently the most comprehensive and internationally recognized framework for evaluating public investment practices.