Abstract
This chapter discusses an optimum structure of public expenditure. It provides a cross-country comparison of infrastructure spending and explains how infrastructure projects in Georgia crowded in private investors and multiplied the impact of the budget spending. It explains public–private partnerships—their benefits and risks.
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Notes
- 1.
IMF staff reports on Armenia provide information on the central government operations. Because total central government expenditure in these staff reports equals total general government expenditure in the IMF’s World Economic Outlook database, I use central government capital expenditure / acquisition of non-financial assets reported in these staff reports to calculate ratios in Figs. 10.1 and 10.2.
- 2.
The vertically integrated urban regeneration schemes in Georgia were first pioneered in cooperation with the World Bank. The World Bank’s work on territorial development received boost from its 2009 World Development Report “Reshaping Economic Geography” (more on this report and on spatial planning in chapter 17 of this book). By 2009, Georgia had progressed in implementing—with own funds and with support of international development partners—many “horizontal” infrastructure improvement measures: secondary and local roads, highways, water and solid waste management projects. This improved conditions for the mentioned “vertical” approach to urban regeneration. The first World Bank regional development project targeted Kakheti region in Georgia’s East and it featured the innovative “vertical” concept which had never been implemented by any international financial institution in Eastern Europe. According to the World Bank (project reports, Regional Development Project, Georgia), this Kakheti project was the first to operationalise the vision put forth by the mentioned 2009 World Development Report. Georgia was invited to the World Bank Headquarters to present its pioneering experience.
- 3.
For details, see Chapter 17 “Territorial Development and Urbanisation.”.
- 4.
IMF estimates of general government revenues and total expenditure start from 1990, hence the look at the period 1990–2018. IMF World Economic Outlook (October 2019).
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Gvindadze, D. (2023). Structure of a Public Expenditure. In: The Transformation of Georgia from 2004 to 2012. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-18264-8_10
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DOI: https://doi.org/10.1007/978-3-031-18264-8_10
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