Cost recovery in a project context: Some World Bank experience in tropical Africa

The shortage of government recurrent funding in Africa has led to widespread deterioration of public services. One reason for this shortage is the substantial consumption of public resources in Africa by parapublic organizations which elsewhere in the world cover costs or generate surpluses. In contrast, the World Bank emphasizes the development of institutions which cover costs either through sale of output or user charges. The Bank's experience with projects in non-market sectors is also of interest, e.g. primary education in which public subsidies predominate. Another reason for the shortage is that government budgeting – both revenues and expenditures – is rarely forward-looking. Aggregate future expenditure claims are often underestimated. Hence more attention to forward budgeting is needed. In general governments need to be far more concerned with getting projects which generate their own finance if broad-based public services are to become the rule.