Public investment: Smart, co-ordinated and efficient

This chapter highlights the importance of sub-national investment for the competitiveness of regions and cities and the well-being of their residents. Public investment serves to leverage private investment, needs to be tailored to the specific conditions in the region, and often involves different levels of government. Three sets of challenges and the associated 12 principles for smarter investing are discussed. Co-ordination challenges need to be addressed at several levels (among national ministries, between national and sub-national governments, and across local jurisdictions), to obtain better results and avoid wasted spending or investments that work at cross-purposes. Capacity at sub-national level is also needed to make these critical investment choices in a transparent manner. Finally, helpful framework conditions, regarding financing and procurement practices as well as the regulatory environment, set the stage for making smarter investments.