Public Flagship Projects: Basic Understanding and Perspective from Kenya as a Developing Economy

Abstract

Flagship projects are strategic in nature aimed at both horizontal and vertical integration of the value chain. They are supposed to strategic interventions aimed at bolstering sectoral and regional outputs so as generate long-term model solutions to significant challenges facing society, economy and nation. They are premeditated interpositions meant to seize opportunities that will generate favourable economic and financial outputs. Because of their specific and high-level importance, they need participatory approach. Public expenditures utilised to spur and speed economic growth. The basic principles underpinning public expenditure management include accomplishing macro-fiscal discipline, strategic prioritisation, allocative efficiency, equitable distribution of resources and technical efficiency. Various scholars have developed theories, approaches and conceptualisation that shows why it is imperative for government to spend on certain activities, projects, interventions and programmes. In addition, these expenditure are also driven by various factors. The thrust of this position is that government expenditure is important so at meet the cost of public administration, maintain law and order, meet social welfare needs of citizens and advance technical efficiency within the economy. In its effort to transform the country into a modern, globally competitive, middle-income country, offering a high quality of life for all citizens by the year 2030, the Government of Kenya developed the Vision 2030 (Republic of Kenya, 2008). In the Kenya Vision 2030, government flagship projects are identified as centrally critical vehicles to achieving the vision and in promoting development in the country. The objective of this paper is review and highlight the various theories anchoring government expenditure on public flagship projects. The empirical literature is on various determinants influencing government expenditure government expenditure on public flagship projects. The determinant in the paper are planning process, project appraisal criteria, source of funds and management responsibility. The paper has derived a conceptual framework to explain the key concepts, constructs, indicator and variables and the relationship between and among that are under study and or analysis. The paper has returned a recommendation that variables influencing public expenditure on flagship projects cannot be reviewed only in a direct effect relationship but moderating and intervening effects should be part of the conceptualisation.