Government Investment Project Decision-making Improvement

Government investment project occupies a large proportion of fixed asset investment in China, and it plays an important role in economic and social sustainable development development and in the promotion of harmonious society. However, there exists for a long time in Chinese government investment project such problems as decision-making mistake and low efficiency. Although the decision-making errors are not a consequence that relevant parties want to have, they are objectively unavoidable taking into account the inflawlessness of decision-making ability as well as morality of policy makers, the unstable environment, and the existence of somewhat inequable institutional system. Therefore, the most feasible alternative is to refine the decision-making of government investment project to reduce decision-making errors to an acceptable extent.This paper firstly introduces the concept of government investment project and its decision-making, the status quo of Chinese government investment project decision-making from both positive and negative perspectives, and the traits of governmet investment project decision-making errors.Then the author goes on to make a thorough examination of the areas that require improvement in government investment project decision-making based on the reality of the investment decision-making in China from the perspectives of engineering philosophy, public choice theory, principal-agent theory, and. behavioral decision theory.Later the author tries to put forward a refined government investment project decision-making system by standing on the shoulders of others in relevant academic fields. The detailed ways and measures to compose this new government investment project decision-making system are as follows: 1) to establish and refine the scientific outlook of decision-making based on the concept of engineering philosophy; 2) to erect a government investment project decision-making system that really deals with social wants; 3) to introduce an effective set of incentive-restraint system to the decision-making body; 4) to build up the procedure construction of government investment project to reinforce the execution of the system; 5) to enhance the decision-making ability on the part of government decision-makers.After the proposal of a refined government investment project decidion-making system, the author takes a step forward to explore ways to quantitatively assess the effectiveness of the refined decision-making of government investment project via the method of data envelopmentanalysis——an index system picked out from an assortment ofsynthetical assessing methods through a meticulous analysis.Finally, the paper takes the improvement of Hunan provincial government investment project decision-making and the improvement of the decision-making of Hunan expressway as case studies. In this part, first there is an introduction of the improvement of the provincial government investment project decision-making and its positive effect as well as a suggestion of further refining measures to improve the provincial government investment decision-making. Then there is a quantitative assessing analysis of the improvement of decision-making of Hunan expressway through the method of data envelopment analysis based of the same period developing level of other central provinces.