strategy
Encouraging public investment in sustainable development
Synonyms:
Encouraging public spending on development Context:
Public spending plays a critical role in development. Through spending, governments preserve and promote national identity, supply infrastructure for development, influence both the course of economic growth and the distribution of its benefits, and provide social services to meet the basic needs of the population. Yet rapid growth in public spending unmatched by domestic revenue has led many developing countries into fiscal crisis, and in many cases spending has been ineffective in promoting growth and equity. Governments throughout the developing world face the need to trim expenditure and improve its allocation. The effectiveness of each item of spending is critical in determining its effect on development. Each major project should be carefully appraised, not only for economic viability (using cost-benefit or cost-effectiveness analysis), but also for technical, administrative, and financial feasibility. A distorted policy environment may cause even the best projects to fail. They need the support of appropriate pricing, trade and credit policies. Broader:
Stimulating investmentFinancing sustainable developmentConsidering the environment when planning government spending Facilitated by:
Evaluating effects of world trade agreements on investmentDeveloping investment strategies for national environmental action plans Subjects:
Commerce → FinanceCommerce → Investment
Government → Public
Development → Development
Development → Sustainable development
Type Classification:
E: Emanations of other strategies Related UN Sustainable Development Goals:
