Public Investments as a Development Tool

The role of public investment and its substantial contribution to economic growth and the quality of life of citizens is now being reaffirmed internationally, creating a trend towards enhancing the relative public spending. This paper analyses this role at international and European level, while it examines especially the case of Greece; having undergone a significant period of shrinkage over the years of the memorandums, the Public Investment Program (PIP) has again shown a tendency to increase its resources and its importance. Greece makes an important reform effort, which must take into account that, in order to keep track of current global trends and prospects, Public Investment Programs are now called for to be reconciled with new development models as well as new, internationally accepted rules of proper governance and financial management. In this context, they should also act as catalysts for further supporting and strengthening private investment.