Altering Public Funds: Transforming the Perspective from Expenses to Investments
In the current political and economic climate, the Organisation for Economic Co-operation and Development (OMFIF) is leading a significant conversation on the future of public finance. This discussion is part of OMFIF's workstream on "The future of public money" project, which aims to build a more sustainable and trusted approach to public value.
The project, a workstream led by OMFIF, focuses on the shift from viewing public spending as mere expenditure to a long-term investment. It encourages a shift in mindset where governments and policymakers view public money not merely as a cost but as a critical resource that can drive structural transformation, innovation, and inclusive development.
Mark MacDonald, the global public finance management leader at EY, and Udaibir Das, a visiting professor at the National Council of Applied Economic Research, are among the experts involved in this discussion. Andrea Correa, a senior economist at OMFIF, is also contributing to the project.
The project emphasizes integrating monetary, fiscal, and developmental policies to create more resilient economic systems capable of addressing complex challenges such as climate change, technological disruption, and social inequality. By convening leaders from public and private sectors and producing research and policy recommendations, OMFIF seeks to highlight the importance of sustainable and forward-looking public investment.
The goal is to unpack what this change in mindset means and to create a more long-term investment-oriented approach to public finance. This approach aims to redefine and leverage public money to support economic growth and sustainability over the long term, reframing public money as a catalyst for long-term value creation rather than a short-term expense.
In summary, OMFIF's "The future of public money project" is a timely and crucial initiative that aims to influence policy discourse and investment frameworks to prioritize durable economic and social outcomes. The project's discussions are taking place in relation to today's political and economic context, with a particular focus on the change in mindset being considered in the context of tighter fiscal positions in economies around the world.
[1] For more information about OMFIF's "The future of public money project", please visit their official website.
[1] The "The future of public money project" by OMFIF focuses on integrating data from AI research to inform sustainable finance strategies in business and investment, aiming to make public spending more resilient and investment-oriented for long-term value creation.
[2] In the project, experts like Mark MacDonald and Udaibir Das are collaborating with Andrea Correa to explore the role of podcasts in disseminating project findings and promoting discourse on the shift from viewing public spending as cost to long-term investment.
[3] The discussions within the project emphasize the importance of public money as a critical resource for driving structural transformation, innovation, and inclusive development, including investment in research and development toward a low-carbon economy.
[4] By adopting a more sustainable and forward-looking approach to public investment, economies can foster resilient economic systems capable of addressing complex challenges like climate change and social inequality, leading to a more public money being invested in a manner that maximizes long-term returns.
[5] As part of the project's goals, OMFIF aims to publish research, policy recommendations, and investment frameworks that support a more long-term investment-oriented approach to public finance, emphasizing the need for a new public-private partnership model to achieve economic and social progress in a post-crisis world.
