How Important Is the Efficiency of Government Investment? The Case of the Republic of Congo

Nielsen, Hannah ; Lofgren, Hans

关键词: ACCOUNTING;    AGRICULTURE;    BALANCE OF PAYMENTS;    BASE YEAR;    BENCHMARK;   

DOI  :  10.1596/1813-9450-5901
RP-ID  :  WPS5901

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The Republic of Congo, an oil richcountry in Central Africa, has made substantial progress inthe past decade in stabilizing the economy and achievinghigh growth rates. However, despite reaching middle-incomecountry status in 2006, the economy is not diversified,poverty remains pervasive, and social indicators are wellbelow the average for countries with a similar income level.This paper analyzes aspects of an ambitious investmentprogram on which the government has embarked to improve theprovision of basic services and promote private sectordevelopment. The success of this program, however, isquestionable given the low absorptive capacity of thecountry and in particular the poor efficiency of publicinvestment management. The analysis is based on simulationswith an economy-wide model for analysis of developmentstrategies and government policies, MAMS (Maquette for MDGSimulations). The results of the simulations show thatslightly delaying large investment projects, whilesimultaneously improving the efficiency of the investmentprogram, would lead to significantly higher growth rates andlower poverty levels. The analysis therefore confirms theimportance of efficient public investment management for theoptimal use of the country's resources.