Effective utilization of public finds is crucial to meet development goals
The Importance of Efficient use of Public Resources Effective utilization of public resources is critical to meeting development goals. Key programs in education and health are overwhelmingly conducted within the public sector. And although private provision of infrastructure has expanded in areas like telecommunications and energy, private investors remain wary of socially-oriented sectors, such as water and sanitation, and also show little willingness to invest in the poorest countries. At present, though, research indicates that increases in public spending are only weakly correlated with the achievement of development outcomes in most developing countries. Government ineffectiveness — in the form of waste, inefficiency and corruption — is largely responsible. Reasons for under-utilization and mis-utilizations of funds: • Corruption: The large sum of money earmarked from public activities are taken away by officials as well as politicians in form of bribes. This results i...