Western Balkans : Public Investment Management and the EU Effect

Abstract

The report summarizes the findings of diagnostic studies of public investment management (PIM) processes in six Western Balkan countries. The key finding is that, except for externally financed investments, preliminary screening and rigorous project appraisal techniques are rarely used, even in those cases where these are prescribed. Ex post evaluation of public investment is also largely undeveloped. Across the region systems are gradually being put in place to improve PIM, but implementation is handicapped by a shortage of skilled practitioners. The report identifies a European Union (EU) effect but finds its impact rather limited. Harmonization with EU practices in public financial management focuses on public internal financial control and public procurement because these are the important areas for safeguarding EU funds. Therefore these are also the areas of PIM where a positive integration effect can be identified.