Research On Reform Of Administrative Assets Management

According to China Accounting Yearbook,by the end of 2003, the state-owned net assets of China value at 10.5 trillion yuan, of which the administrative assets are 3.4 trillion yuan, accounting for 32 percent. Statistics show that in recent years China's administrative assets grow each year at a high rate. Compared with 2003, in 2004 the state-owned administrative assets grew by 13.1 per cent, and this growth rate is 2.2 percent higher than the overall growth rate of state-owned assets, and 3.2 percent higher than enterprise-operating assets'growth rate. It can be foreseen that administrative assets will grow further in size and percentage in national assets structure.Facing this reality, the Third Plenum of the 16th National Party Congress passed the CPC Central Committee's Decision on Improving the Socialist Market Economic System. It pointed out the need to "establish and improve a regulatory system for state-owned financial assets, non-operating assets and natural assets. After this, the party's 17th Congress Report clearly pointed out that in the next five years efforts will be made to "perfect the various types of state-owned assets management system." However, due to various reasons, on practice level, the country has been more attentive to the state-owned assets management reform, and has made quite remarkable achievements, but there has not been enough concern about the state-owned administrative assets management reform and there has not been an overall plan and a reform programme.Although China's administrative assets are not for the purpose of making profit, it plays a very important role in China's political, economic, cultural and social realms. It is of great significance concerning the building of state power and safeguarding the state's long-term stability, and promoting the development of the cause of socialism. To that end, it is necessary to carry out theoretical studies and to sum up practical experiences, and put forward specific measures to accomplish further reform..This paper proceeds along the logic mainline from "what is it" and "how 2 come" to "why" and "what to do" and gradually extend the discussion on administrative assets management reform. "What is it" clarifies the theme of this study and defines the connotation and extension of administrative assets: used by public institutions, from the state investment in a variety of forms (inputs) and its proceeds, formed by accepting gifts, or by virtue of the state power, or types of property and property rights identified by law. It has four major characteristics: first, a diversified approach of formation, mainly from national financial funding. Second, most of the assets are non-profit, so there is not a self-compensation mechanism . Third, the scope of assets is ontinuously adjusted to the original category. Fourth, more types of administrative assets are coming into being and fixed assets are taking larger part. Its current management situation is: management mechanisms among different institutions are not unified; inter-departmental management duties are not clear, functions of cross-asset stock are not clear; there are conflicts among accounts and between acounts and facts. And there is lack of strict management on non-operating assets. "How come" is the part pointing out the current management problems that exist. Through a review since 1949, the author points out that China has experienced four stages of administrative assets management and analysis is made to point out the four main problems in administrative assets management: lack of justice; low efficiency; poor benefits and a seedbed for corruption. "Why" is the part for a multidimensional analysis of the four major causes of these problems. Namely: the national interests of the department and departmental interests units; management system was not smooth; assets occupied gratuitously; lack of effective supervision. "What to do" deals with the idea of management reform and major initiatives. By analyzing Shanghai, Nanning (Guangxi), Ankang (Shanxi) and Nanhai (Guangdong) four regional administrative and asset management practice, the author sum up experiences and performance evaluation on the basis of the solution, the management of the three specific reform measures: First, establish and perfect laws and regulations, mainly for the implementation of administrative reform of the asset management on the legal basis; Second, deepen the reform of the management mechanism, including: reform of the system of property rights in order to implement centralized property; management personnel reform to support the implementation of the reform of the system; strategy to strengthen assets process management in order to ensure management of the implementation of the reform process can be fulfilled smoothly; speed up the implementation of performance management in order to obtain the asset management objective; accurate measure of the effectiveness of the full implementation of information management in order to take full advantage of advanced management tools to implement management reforms. Third, we must intensify supervision and management, and perform stringent internal control and strengthen effective external supervision, thus effective supervision can be ensured concerning the implementation of management reforms on administrative assets.On the basis of relevant literature and existant research, together with the author's practical experience, the author discusses the issue of the manangement reform on administrative assets. It can be seen that this paper is innovative in two aspects: First, the author make use of advanced government management theories in digging out the deep causes of the existing problems in administrative assets management. Second, against actual situation the author explores some theoretically and practically sound reform measures. These analyses can be instrumental to those who are making researches on the reform of administrative asset management and can inspire researchers to make further meditaions concerning this subject. These explorations can be used for reference by governments at all levels in the formulation of administrative assets management reform measures and help push forward the cause of the asset management reforms and improve administrative efficiency of the operation of assets. However, these measures are just the author's explorations in a embryonic form. Study must be continued in theory and practice. Bold innovations have to be made and reforms have to be pushed further to ensure high efficiency of administrative asset management and meet the growing actual needs of administrative institutions as they serve the public.