Governments typically set a wide range of goals. This is reasonable and expected: For a society to grow sustainably, social stability-related targets are just as critical as economic ones.
Faced with a broad array of objectives and limited hours in a day, government officials will prioritise projects that befit their career stage. This, in turn, may affect local firms more than they realise.
For instance, younger officials will pay more attention to hard KPIs that could lead to a promotion. Meanwhile, older ones will focus on softer targets that could bring them personal benefits after retirement or at least ensure a smooth transition when they leave office.
They may not be as interested in pushing large economic growth-enhancing projects whose results may come too late to help their career.
In our newly published article, “Running out of steam? A political incentive perspective…
