PIMA Handbook

This handbook is aimed at anyone who is involved in a Public Investment Management Assessment (PIMA) or who has a practical interest in public investment management. It is intended to be useful for country authorities, IMF staff, staff of other financial institutions and development organizations, and anyone who is interested in exploring different aspects of public investment management to understand how country systems are designed and how they work in practice.

Part I (sections 1 through 3) of the handbook gives a concise overview of the PIMA framework. Section I explains the importance of public investment and describes the PIMA framework. Public infrastructure is a key driver of inclusive economic growth and development, and the reduction of inequalities. The need for stronger infrastructure governance for quality investment is widely recognized. Yet, creating quality infrastructure has often been challenging. Losses and waste in public investment are often systemic.

PIMA is a comprehensive and standardized framework to assess public investment management for countries at all levels of economic development. PIMAs evaluate 15 institutions, or practices, involved in the three key stages of the public investment cycle: planning, allocation, and implementation. Each institution is analyzed along three dimensions that reflect the key features of the given institution, resulting in a total of 45 dimensions. A key feature of the PIMA is that it makes a clear distinction between institutional design (what is on paper) and effectiveness (what is in practice).

Section 2 discusses how to describe and analyze public investment trends and efficiency. It describes the datasets that are used and gives examples of how these are presented. It also outlines the methodology for analyzing the public investment efficiency and presenting efficiency gaps.

Section 3 of the handbook gives an overview of usefulness of the framework to identify key bottlenecks in public investment management and develop an action plan for reform. It describes the key issues and challenges identified in PIMAs and the main recommendations that have been made to improve public investment management, then gives examples of action plans proposed in previous PIMAs.

Part II provides a detailed practitioners’ guide to apply the PIMA framework. A detailed description, explanation, and discussion of each of the 15 PIMA institutions and 45 dimensions are included in sections 4 through 8. Section 4 discusses key general issues that are common for many of the institutions and dimensions. Sections 5 through 7 provide detailed discussions of the institutions and dimensions under each of the three main pillars: planning, allocation, and implementation. Section 8 discusses how to analyze and assess the cross-cutting enabling factors.

The appendixes provide additional guidance on the PIMA framework. Appendix I contains the questionnaire that guides the PIMA assessments. Appendix II summarizes indicative scoring thresholds for institutional design and effectiveness for each of the 45 PIMA dimensions. Appendix III provides an overview of the PIMA assessment process. Appendix IV outlines a PIMA report, and Appendix V comprises a glossary of commonly used terms.




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    Cross-Cutting Institutions
Legal Framework, IT System, Staff Capacity