Public investment is among the most important factors affecting economy, national progress, and living standards. It is ideally done by the government which includes both the federal state governments and local governments. Resources in the state are allocated to basic infrastructures like building roads, bridges, railway lines, airports, electricity provision to all near and far areas, investments in the health sector, provision of clean water pipelines, waste and garbage disposal units, and other such services.
Public investment is also made into other beneficial and productive investments and investment incentives. Basic and advanced research is supported and steps to minimize environmental hazards are taken publicly. Public investments are made in the education sector. Primary schools and higher education sectors are supported, scholarships are granted both to national and international students for higher studies and for research purposes. Not only is primary schooling and higher studies considered, job training is also given to produce individuals with higher efficiency thus leading to higher productivity.
Private organizations also take part in the provision of these services and physical infrastructure. However, the investments made by the private sector is much lower than by the States. A major reason for this is that the profits (both monetary and intangible) accessed from the public investments capital is not added just to those undertaking investments but also to a broad range of folks and businesses.
Measures for Attracting Public Investment
States and governments can follow the following principles in order to attract public investments both at the national and international level.
- Endorse learning about public investment at all levels of government.
- Reinforce capacities for public investment.
- Assess long-term effects of public investment. Risks of public investments should also be kept in mind. Monitor investments and their impacts that yield positive results as desired.
- Activate private sectors to expand sources of funding. It will also strengthen the capacities. Strengthening capacities mean more gains in the long run.
- Emphasize the proficiency of public officials and institutions who are designated in public investments sectors.
- Attention on consequences and promote wisdom from experiences. For this, there should be a vigilant check and balance on bookkeeping, records, and policies. Experiences in forms of gains, risks, or losses must be documented and evaluated for further strengthening of the system.
- Thorough and demanding framework conditions should be kept at all levels of government.
- Cultivate a monetary framework adjusted to the goals chased.
- Entail thorough and transparent fiscal management at all levels of government. Bookkeeping records must be thoroughly evaluated and followed up.
- Encourage clearness and strategically usage of the public procurement at all levels.
- Ensure quality and uniformity in controlling systems at all levels of government.
- Implement effective tools for co-ordination among national and sub-national levels of government.
Research in Public Investment
This is a very effective tool in finding the role and impact of public investment in long-term gains. There is economic growth, no doubt, but the actual measurement of how much efforts is needed in the public investment that can boost economic growth in a decade can be done through thorough research. Investments in public capital have weighty positive influences on private-sector output. When there is a constant result in a continuous research carried on public investment, it means that public capital suggests an upper rate of return than most systems of private capital.
Foreign Direct Investors
This should be encouraged to promote public investment capital. Investment incentives are given to private actors for investment in the public sector. For this, foreign investors can also be given incentives. It will attract foreign investors to act more in public investment that will eventually improve the economic growth of a nation/country in the long run.
Conclusion
Keeping your business planning, bookkeeping, and research up to date will allow you to compete with foreign investors for public investment on the national level.
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