| At present, China has specific laws and regulations which stipulated thatlocal governments are not allowed to raise loan by themselves. But thisdoesn't mean that local governments are free of any debts. Besides the debtsthat are allowed by the present law, there are a lot of debts such as the debtraised by the local governmental agencies hi the name of decentralization offinancing, the outstanding salaries, deficiency in the social security fund, theoutstanding payment by local financial institutes and the bad debt of localstate-owned enterprises, will finally be assumed wholly or partially by localgovernments. Although these debts may not belong to the local governmentliterally under the present system. Our investigation shows that up to now, nogovernmental departments can clearly tell how much debt our localgovernments actually have. It's obviously that those debts, withoutgovernmental statistics or supervision, will be the important factors to induceor intensify the national debts crisis and financial crisis. Therefore, acomprehensive evaluation, liquidation and standardization of localgovernments' debts and a reduction of debt risk will be very urgent andimportant.The paper consists of six chapters.Chapter 1 is an introduction. It describes information about the background, significance and some important innovations of the paper. It also summarizes the structure of the paper, introduces some typical and new ideas as well as the conclusion.Chapter 2 is the analysis of the manifestation of the local governmental debt risk on the basic of the definition and classification research. It regards that according to the legal definition on debts, by combining the real form of local debts, proceeding from the risk-defend, the local government debtsinclude five kinds. They are debt's income, sub-local government debts, outstanding payment of local government, guarantee debts and social liabilities by local government. Those debts, with difference of special emphasis, can be divided into explicit and implicit debts, direct and contingent debts, deficit debts, productive debts and constructive debts. On such basis, we can summarize the main forms of current local governmental debt risks. The paper believes that the risks show not only on the internal risks like the total volume risk, structural risk, interest rate and exchange rate risk, proficient risk but on the external risks like extra tax-fee or aggravating -debts -burden, transferring debts to upper level government, influencing on macroeconomic policy.Chapter 3 is the analysis of the contributing factors about the local governmental debt risks through three aspects such as financial system, economic system, and debt's management. We believe that factors causing debt risks are in many different forms. They include not only the risks caused by the unclear division between governmental authorities and expenditure decision making during the transformation of financial system, but also the deficiency hi financial income to satisfy the expenditure, as well as the systematical debts risks caused by unreasonable relation between government and market, or between the government and enterprise. It also includes the risks caused by the sluggish reformation in debt's management.Chapter 4 is the discussion of theoretical basis, restraints and the general methods of risk control. The paper illustrates that the rationalization of debt and the restraints are the theoretical prerequisite to strengthen debt's management, to prevent and eliminate the local governmental debt risks. We think that the contradiction between the long utilization term of local public goods and the limitations of prompt funding makes it necessary for the local government to raise a loan. Meanwhile, the classified financial system as is necessary under the market-oriented system constitutes an institutional basisfor loans raised by local government. In consideration of the restrictions imposed by t...
|
PDF Full Text Request