This Handbook is the outcome of the collective effort of many officials and experts who
have experience and expertise in public investment management in developing countries
as well as Japan.
Public investment management (PIM) has recently been attracting attention in the
field of public financial management (PFM) in developing countries for the
First, the growth of “infrastructure deficits” around the world. Many developing
countries are experiencing infrastructure deficits while trying to sustain high
economic growth. Developed countries must address the increasing need to renovate
public infrastructure facilities that were built in the 1950–1970s.1 At the same time,
developed countries have experienced a steady decline in the public
investment-gross domestic product (GDP) ratio since the 1980s, leading to growing
concerns regarding the sustainability of economic growth. In response, the
government of Japan has been advocating quality infrastructure investment (QI
investment) to address the growing demand for public infrastructure around the
Second, recognition that improvement of PIM is a critical component of PFM
reforms in developing countries. Limited PIM capacity has been identified as a
major bottleneck to securing and strategically allocating government resources, and
therefore a bottleneck to addressing the rapidly increasing need for public
infrastructure in developing countries.
Finally, weak institutional foundations for managing development plans, national
budgets, and individual projects to achieve long-term visions and targets in many
developing countries. Since the adoption of the sustainable development goals
(SDGs) in 2015, many developing countries have been required to strengthen those
institutional foundations to achieve their own SDGs and national development
visions and targets by 2030.
To address these issues, JICA has been implementing technical cooperation projects
in Bangladesh, Laos, Malawi, and Indonesia since the mid-2000s. The current
Handbook takes stock of the experiences of those projects and provides useful
information for JICA officials and experts tasked with diagnosing PIM capacity and
formulating and implementing capacity development projects.
The current Handbook is organized according to the following three themes:
1) Understanding the outline of the PIM system
Chapter 1 provides background information on the importance of strengthening PIM
in developing countries, along with an overview of the PIM capacity development
of Chapter 2 explains the first of the four stages of the PIM-CDF and provides
guidance for collecting and organizing basic information on PIM in a developing
country. This chapter delineates the outline of public investment and identifies the
main characteristics of the PIM system in a country.
2) Analyzing PIM issues and capacity
Chapter 3 explains the second stage of the PIM-CDF for analyzing PIM issues and
capacity. This chapter will guide readers in conducting in-depth analyses of the
issues and capacity for PIM in the country concerned.
3) Formulating and implementing PIM cooperation strategy and capacity
Chapter 4 explains the third stage of the PIM-CDF for formulating and
implementing a cooperation strategy and projects for PIM. This chapter uses the
information on PIM issues and capacity collected in Chapter 3 to formulate a
comprehensive cooperation strategy for PIM for the country concerned. This will
allow readers to design JICA technical cooperation projects. Some critical points
requiring attention at the design stage of PIM support are also summarized in this
Chapter 5 highlights additional critical considerations that require attention at the
implementation stage of PIM support. These insights are based on experience from
past JICA technical cooperation projects conducted in Bangladesh, Laos, Malawi,
and Indonesia.mework (PIM-CDF).
The book could be downloaded from JICA Website: https://www.jica.go.jp/activities/issues/governance/ku57pq00001wwbna-att/strengthen_public_investment_management_capacity_handbook_e.pdf