1.0 Introduction
The evident infrastructural gap in developing countries impedes their overall economic development. The countries’ low institutional capacity and inability to effectively regulate their economies and societies is a major factor responsible for global infrastructural and development deficits (J1 & J5) . On the one hand, public investment up-scale was described as an important solution for cutting down the infrastructural deficit and achieving the overall development potentials of developing countries. On the other hand, (J5) stressed that weak institutional environment coupled with poor public investment and infrastructural management will not allow these objectives to be fully realised. Public investment upscale may not be (not have been) effective in ramping up infrastructure and development levels, because the necessary institutions to enforce laws and manage development are either ineffective or non-existent in a lot of developing countries (Kolben, 2011; J3).
Public investments in developing countries have been grossly mismanaged while their costs and accounting are inaccurate. It is usually assumed that the full cost expended on public investment transmits into the value physical ; many authors have wrongly assumed a perfect efficiency for public institutions and public investment. As a result, current investments are overvalued while existing physical capital that has not depreciated are not accounted for (J5; Pritchett (2000). (J5) described this as an economic problem that result in poor and insincere accounting, inadequate returns on public investment and weak public investment management. This also indents the knowledge we have about public investment and infrastructural development as well as instit...
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... & Timescale
The research program will follow a simple, clear and concise plan which will result in the submission three academic papers within four academic sessions. An academic paper will be submitted within the first 2 years which would represent an academic session on a part time basis. The program will then be switched from part-time to full time program in year 3 and the second academic paper will be submitted in the third year while the third paper will be submitted in the fourth session; the research will be fully completed within four academic sessions.
References/Bibliography
The IMF & Public Investment
IMF (2015a) Making Public Investment More Efficient. Washington, DC: IMF.
National Priorities Project (2014) Fighting for a U.S. federal budget that works for all Americans. www.nationalpriorities.org/analysis/2014/history-us-federal-budget-2011-2013
U.S. Department of Health and Human Services. (2005). FY 2006 budget in brief: health resources and services administration. Retrieved June 5, 2011, from http://www.hhs.gov/budget/06budget/healthres.html
Méon, P.G. & Weill, L. (2009). Is corruption an efficient grease? World Development, 38(3), 244-259.
The preamble of the United State’s constitution sets many goals for the country. These goals are to form a more perfect union, to establish justice, insure domestic tranquility, provide for the common defense , promote the general welfare, and to secure the blessings of liberty for ourselves, and our posterity (US Const). With all of these goals it begs the question are, parts of the United State’s government meeting these goals? One specific case with this relationship is the relationship between the federal budget, and the goals in the preamble. The federal budget is meeting the goals set out in the preamble of the constitution because the federal budget defends the country, promotes the welfare of America’s citizen, and establishes justice
trying to repeal the ban on assault weapons. A lot of money is spent each year
The policies dictated by the IMF during the 80s and 90s, which were influential in destroying the economies of many developing countries, offer one example of the technocratic approach going awry. Today the realities of the developing world vary from country to country, but experts continue to be obsessed with setting goals and expecting that governments will reach them, without taking into account the likely impact on the local
The success of capital investment projects varies and it is sensitive to numerous factors. A particular belief is that the failure of capital investment projects is pegged to the fact that the adjacent decisions are made in an improper manner, that the resources are poorly allocated and that the correc...
Entering the 21st. Century – World Development Report 1999/2000. World Bank 2000. Oxford University Press. New York, NY 2000.
Formal and Informal sector intersect when the subject relates opportunity costs enforcing the cost-benefit approach. Legalist perspective suggests that formalization is the mechanism to protect business and property rights, creating capital, raise productivity and attract investments. De Soto (2000) argues that the real estate value is worth of USD 9.3 trillion in the Third World countries that exceeds any kind of donation and loans from the developed world. We witness the unique “entrepreneurial ingenuity” that the poor created in the developing world. Although, it is a dead capital which cannot be used for economic development, unless treated properly. De Soto claims that the higher formalization, the more potential exists to accumulate wealth and decrease the poverty rate. The concept that he considers crucial generating capital flow is the “surplus value” created by the formalization and property rights. Assets’ economic potential must be fixed in order to initiate additional production. Assets must be integrated into one formal representational system; that is how the West succeeded in capitalist realm. In 1849, California, the Congress gradually integrated the informal property created by immigrants and miners . Thus, benefits from the company perspective of operating formally are as follows: limited liability not risking the whole property of the business/owner; enforceable commercial contracts, enabling business entities insure rights and obligations to be met; access to finance and market information, legalised and registered entities benefit from the trust of financial institutions; access to government incentives, including procurement tenders and export promotion policies; access to public infrastructure and services; ...
Political instability and corruption is a major impact on growth. The rule of law and appropriate enforcement is needed to create an established system of honesty and loyalty in society. Corruption is people acting in an official capacity of trust and responsibility misusing their position for private gain. When there is this sense of corruption many things are affected. Corruption discourages investment due to lack of business ethics. There is an increase in tax evasion as well as an increase in more “tax burdens” for the poor which is inherently wrong. Corruption leads to an unfair allocation of resources. If contracts go to the highest bidder, as opposed to the most efficient producer, then there is market failure and resources are being misallocated. If often sustains inefficient producers by shielding them from competition. Finally, Corruption means that officials will often divert public investment into capital projects where bribes are more likely. This reduces the quality of government services for the population. The monetary gains from corruption are often moved out of the country. This is a form of capital flight and it reduces the capital available for internal use.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
Cassen, R. (1994) Does aid work?: report to an intergovernmental task force. 2nd edition. Oxford: Clarendon
In today’s globalizing but still fragmented and dangerous world, nations more than ever need effective governments to provide security, social cohesion and order, governance, infrastructure and basic services. They need, too, a vigorous private sector to mobilize the productive forces of the market, thereby creating national wealth and a strong national economy linked to international trade and markets. These two alone are not enough, however. Without the balance and political integration provided by the action of a third sector “civil society” too often the outcome is to centralize even more power in an already highly-centralized public sector and to concentrate even more wealth in an elite segment of the private sector. A dynamic civil society is needed to bring much greater political voice, social engagement, and economic participation to grassroots citizens. The three sectors need to work together in cross-sector partnerships to advance social progress and reverse the growing gap b...
Extractive institutions are used throughout this book to explain that the upper class extracts resources and goods from the lower class. They don’t allow growth or competition, but rather they just exploit the rest of society into doing their labour. It’s used to please a few, rather than the majority, and can still be seen in most places in the world. Whereas, inclusive institutions are the ideal way nations should be run, allowing for fair economical systems, property ownership, educational facilities and allowing all citizens to participate in the growth of the economy. Acemoglu and Robinson argue that this is the main factor in distinguishing the rich countries from the poor and, moreover, how they treat their citizens. This system is relatively used in North America and Western Europe.
The elements of NPM have been implemented in diverse forms in different countries depending on their historical nature of bureaucracy and public sector management and reform objectives. For instance, more emphasis was given to performance management in Scandinavian countries, while a stronger accent was on market type mechanisms, contractualisation of the public service and systematic approaches to improving service quality in New Zealand, the UK and the USA. The long-term benefits from these reforms have not been empirically validated. Nevertheless, the major donors are agreed that what developing countries must do to improve public sector management is to sweep away the traditional public administration paradigm that underpins their bureaucracies and introduce the new public management (Turner and Hulme 1997: 230). Mongolia has not escaped from this trend.
Striating from the research idea to the culmination of the findings, the research process entails many segments, all of which are imperative. By choosing the research methodology, the researchers can formulate the path to be used in conducting the study and reporting the findings. The methodology helps in the search of literature, development of research questions and the creation of the most suitable study design. It also assists in the interpretation of the results and the publication of the findings in journals.