Research On Management Of Investment Project By Local Government

Government investment projects refer to the government-led and government-built construction to meet the public demand. It mainly includes the building of political power, the area of national security, and the social area, in which the market can not effectively allocate resources. It utilizes financial capital or financing investment in fixed assets. Government investment project is an important guarantee or means to provide public services to raise the quality of people's life. Its implementation relates vital interest of each person. Moreover, the government investment project plays an important role to drive economic development, regulate industrial structure, expand employment, etc. Particularly the local government investment projects connect the public closer together, more targeted use of objects. Many overall projects of government investment are actually implemented by local governments. Therefore, a good management of government investment projects is of great significance. However, as for the government investment in the project management process, there is alienation of government investment project implementation purposes, the informal system, serious alternative to the formal system, project management and engineering supervision of inefficiency and poor results in many problems. These problems lead to the deviation from the investment objectives, public inefficient use of resources and the breeding of corruption, resulting in damage to public interests.This study falls into five parts, the first part is an introduction, describing the background of this study that reviewed studies have pointed out the local government investment projects of the theoretical and practical significance. The second part of the local government investment and local investment projects defines project management, makes a review of local government investment in project management to the history and current investment projects of local government management situation, describes on the current Local Government Investment in China Project Management of the two modes. The third part probes into the problems of the local government investment in project management, trace the reasons for the problems by agent theory and public choice theory that the deep-seated of these problems because of lack of supervision of the initial principal, the information asymmetry caused costs to, incentive and restraint mechanisms, and management with in-one phenomenon. The fourth section deals with the experience of the western developed countries in government investment project management and inspiration from the western counties to out government investment projects. This fifth part discuss the current situation of China's project management and point out the views to clarify the agency relationship, to narrow the information between principal and agent, to split the way of realizing interest appeal, and to establish incentive mechanism.