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Government Procurement Risk Prevention And Management

Posted on:2003-06-27Degree:MasterType:Thesis
Country:ChinaCandidate:B Y ChenFull Text:PDF
GTID:2206360092470619Subject:Public Finance
Abstract/Summary:PDF Full Text Request
As we all know, risks exist anywhere and anytime. All of the economic activities confront risks at any time.Although risk is an objective thing, and there is no one who can slide over it, people can prevent and control it by various methods.Government procurement, which can be called public procurement, is a purchasing activity conducted by government sections and their subsidiary institutes, public facilities and social groups controlled by government directly or indirectly. This activity is supported by financial capital, including budget fund and non-budget fund, and with a view to realizing government's functions and/or public welfare through purchasing commodities, projects and services needed by government sections and/or social groups in question. At the same time, Government procurement is an important tool used by the market economic government to manage its public expenditure. In order to work in the course of nature and realize public welfare effectively, many a government will expend a lot of financial capital on government procurement. According to statistical documents, we can see that only the central government's procurement expenses takes up 10 ~ 15% of GDP in market economic countries. Government procurement, either as a market transaction activity or as a measure of public expenses management, has been playing an important role in economic development of a nation. It can not only make one country's economy in accordance with the global economy, but also realize government's great and important policy targets; it can push government's consumptive actions to market, as well as fight against briberies and establish financial and economic rules.Comparing with commercial purchases, government procurement has characteristics as follows: supported by public fiscal capital, not to chase profit finally, objects concerned are comprehensive, quantity is large, has various procurement methods and has a long procurement chain, and the like. Government procurement activity's special natures as above,determine it will face high risks inevitably. Because of this case, in developed countries, their governments have established government procurement system so as to prevent and manage government procurement risks.Since 1990s, using other countries' experience for reference, our country has been bending itself to establish a suit of government procurement system for itself. So far, this cause has been making progress. Of course, it's very important for our country to rule government's purchase behavior and to control its risks. But as it is well known that at present, in our country, government's purchasing activities are carried out by different section, and the government procurement management system is imperfect. This imperfect government procurement management system brings about a world of purchase risks, and hinders government's functions as well as social public welfare to be realized efficiently. Therefore, it's an urgent task to set up a suit of risk preclude system for the government procurement.In nature, government procurement management is a risk management. It includes risk identification, risk measurement, risk analysis, risk valuation and risk preclusion.This thesis introduces theories concerning government procurement, and study other countries' government procurement theories and practices. It will identify, measure, analyze and estimate the main risks existing in our government procurement activities by using risk theory so as to preclude, control and manage a variety of purchasing risks effectively, and realize government procurement's final targets.This thesis consists of four parts.In part one, I'll introduce the basic theory of government procurement. Firstly, I will bring forth a definition for the government procurement, so as to furnish the basis for researching government procurement risk management further on. Secondly, I will look back the history of government procurement briefly. Thirdly, I will generalize the aims and principles of government proc...
Keywords/Search Tags:Government Procurement, Risk, Prevention, Management
PDF Full Text Request
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