China's Government Procurement Management System Optimal Design

The government procurement is an essential means through which the government protects the interest of the nation, and performs its regulative duty upon the economy and the public financing. However, China's government procurement exposed many problems in the operation ,especially unscientific management system and operating mechanism,which has seriously hindered the development of government procurement.Therefore,the management system of China's government procurement should to be improved.This paper is divided into four chapters.The first chapter,introduce China's government procurement system and operation,propose the necessity of improving the government procurement management system. China's government procurement started from 1996, in Shanghai,on the basis of international experience,and opened fuether in 1998.Scince establishing government procurement system, China's government procurement has achieved remarkable success,including:established fairly complete legal system and policies; formed a complete government procurement procedures; saved funds to improve the efficiency of procurement activities;strengthened financial supervision and legal responsibilities to inhibit corruption effectively;pladed a positive role on the protection of the environment, supporting the undeveloped regions and the development of small or middle company. However, due to China's government procurement also for the initial stage,there still exist some problems, it is necessary to further improve the government procurement management system. Improving the government's government procurement system is the inevitably require of socialist market economy, important support for the government procurement system, initiatives to enhance the functions of finance, the inevitable choice of improving the government procurement efficiency and quality, and important channels to put an end to corruption.The second chapter describes the siuation and problems of China's government procurement management system.There are a lot of problems, first, procurement patterns are not unified,the implementation of the procurement is diversity. Second, procurement methods are unscientific,bidding and tendering mechanism is not sound. Third, the procurement agencies do not set clear, a body with many models. Fourth, responsibilities of procurement regulatory bodies are not clear.The third chapter presents government procurement management system the United States, Britain, Canada and South Korea . The Office of Federal Procurement Policy is the major federal procurement policy management, Federal Service Department is ther the major procurement agencies. In addition, the Federal Court of Claims on government procurement also has supervisory role.British set up Government Procurement Office in the Ministry of Finance, and its main functions are: formulation of the government procurement policy and regulations, to provide procurement information, supervision and inspection of the implementation. Canada put the civilian defense procurement and nornal procurement together.The law requires the Department of Public Service departments in charge of procurement for the federal government, responsible for federal procurement policy.South Korea began the procurement system in 1995.The central government set up special procurement departments,"the Office of Procurement and Supply",in line with the government of the economic plan, increasion of administrative efficiency, the elimination past procurement waste of the organs.The forth chapter proposes optimization design principle,the theoretical foundation, design programmes and the improvement of relevant recommendations of China's Government Procurement management system.Government procurementmanagement system optimization principles include:insist the Government procurement system, service for the target of government procurement, combining China's national conditions with international experience, combining science and feasibility, and the principle of matching. The basical theory of government procurement management system optimization design includs:commission - agency theory, the separation and balance of powers theory, theory of rent-seeking and the new public management theory.The programme of China's government procurement management system optimization design is building management, implementation, supervision of the decentralized model of checks and balances, seting up centralized procurement of scientific institutions, and a reasonable choice of purchase.Proposals of Improving the government procurement management system are: firstly, gradually perfect the government procurement and related legal system;secondly, define reasonablely the scope of China's government procurement; Thirdly, focus on the establishment of centralized procurement agencies;forthly, further improve the system of centralized purchasing directory; Fifthly, integrate the macroeconomic regulation and control modernization of government procurement management; Sixthly, improve the management of government procurement measures.