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Public investment --- Public management

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This report describes the key policies for Mali to succeed leveraging growth with export diversification. For many decades, Mali has been a commodity-dependent country, mainly relying on gold and, to a lesser extent, cotton. However, the experience of other countries, in Africa and other parts of the world, shows that large scale production of minerals and oil resources offers great opportunities, but also presents major shortcomings. These are: tendency to growth beyond potential in cycles of booming prices; high GDP growth volatility that translates into a fragile fiscal stance; a resource curse that favors production of non-tradable goods; and a growth pattern biased toward rent-seeking activities, which prevents expansion of competitive activities creation of abundant and better jobs. Mali is no exception to this. Mali needs to structurally transform itself to accelerate growth and reach its vision, Mali 2025. The Government of Mali does not have a choice: without adequate jobs by 2025, Mali's burgeoning youth population will foment more violence in an already fragile economy and keep investors away. Hence, it has outlined a strategy to achieve this vision centered on the diversification of its economy (and exports) away from natural resource-based commodities.

Business Environment --- Employment --- Industrialization --- Productivity --- Public Investment --- Trade Reform

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This outlook provides a focused assessment of the state of public capital in the major European countries and identifies areas where public investment could contribute more to stable and sustainable growth. A European Public Investment Outlook brings together contributions from a range of international authors from diverse intellectual and professional backgrounds, providing a valuable resource for the policy-making community in Europe to feed their discussion on public investment. The volume both offers sector-specific advice and highlights larger areas which should be prioritized in the policy debate (from transport to social capital, R&D and the environment). The Outlook is structured into two parts: the chapters of Part I respectively explore public investment trends in France, Germany, Italy, Spain and Europe as a whole, and illuminate how the legacy of the 2008 Global Financial Crisis is one of insufficient public investment. Part II investigates some areas into which resources could be channelled to reverse the recent trend and provide European economies with an adequate public capital stock. The essays in this outlook collectively foster a broad approach to and definition of public investment, that is today more relevant than ever. Offering up a timely and clear case for the elimination of bias against investment in European fiscal rules, this outlook is a welcome contribution to the European debate, aimed both at policy makers and general readers. As with all Open Book publications, this entire book is available to read for free on the publisher’s website. Printed and digital editions, together with supplementary digital material, can also be found at www.openbookpublishers.com

Economics --- Business --- European countries --- growth --- state of public capital --- public investment --- policy-making community

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In low-income, capital-scarce economies that face financial and fiscal constraints, managing revenues from newly found natural resources can be a daunting challenge. The policy debate is how to scale up public investment to meet huge needs in infrastructure without generating a higher public deficit, and avoid the Dutch disease. This paper uses an open economy dynamic stochastic general equilibrium model that is compatible with low-income economies and calibrated on Ugandan's data to tackle this problem. The paper explores macroeconomic dynamics under three stylized fiscal policy approaches for managing resource windfalls: investing all in public capital, saving all in a sovereign wealth fund, and a sustainable-investing approach that proposes a constant share of resource revenues to finance public investment and the rest to be saved. The analysis finds that a gradual scaling-up of public investment yields the best outcome, as it minimizes macroeconomic volatility. The analysis then investigates the optimal oil share to use for public investment; the criterion minimizes a loss function that accounts for households' welfare and macroeconomic stability in an environment featuring oil price volatility. The findings show that, depending on the policy maker's preference for stability, 55 to 85 percent of oil windfalls should be invested.

Fiscal Policy --- Macroeconomic Volatility --- Optimal Resource Allocation --- Public Investment --- Resource-Rich Developing Countries

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Uzbekistan is a resource-rich country with a relatively young population of 33 million, the largest in Central Asia. It is also a geographic pivot for the region, bordering all other Central Asian countries and Afghanistan, with transit connections in all directions. As a double landlocked country, it is uniquely dependent on these cross-border transport connections and on how well they work. It can also potentially be the largest market in Central Asia and given its sizeable young labor force and substantial agricultural and manufacturing capacity, a major regional exporter. This note attempts to highlight the potential economic impact of BRI on the Tajik economy. It looks at how, if fully implemented globally, the BRI is expected to achieve better transport connections and greater economic integration of participating BRI countries, discusses improvements in Tajikistan's cross-border transport, electricity and ICT infrastructure to-date, and assesses the potential impact of the completion of all BRI transport projects on Tajik shipment time. It further looks at the likely economic impact of BRI reductions in shipment time on exports, FDI and GDP, and the spatial distribution of benefits within the country and at how complementary polices can enhance the positive impact and mitigate risks. Finally, it examines the fiscal risk of Tajikistan's scaling-up of investment in BRI transport projects in the coming years without undermining medium-term debt sustainability.

Public Investment --- Railways Transport --- Roads and Highways --- Transport --- Transport and Trade Logistics