Public spending is a critical element in national development. The outcomes of public spending can be short-sighted and inefficient, however, unless a sound management system and related policies for public expenditures are in place. Fiscal rules, performance management, and institutional arrangements are critical for ensuring efficiency and for meeting medium- and long-term challenges.

The ultimate goal is to make public spending sustainable. The authors of this volume compare fiscal rules, fiscal risks, and well-designed expenditure-management policies in numerous developed countries. In the case of Korea, important lessons emerge from achievements during the past two decades, particularly in performance standards, feasibility valuations, and monitoring.

The authors also review the recent trend of private-sector involvement in services formerly provided by governments. They examine whether such arrangements provide public services efficiently, and also question whether, in some cases, they deliver less than they promise.