Poor Areas In Yunnan Province Was Made County "financial System Reform Risk Research

In September2009, the Ministry of Finance released Advice on Promoting theReform of Direct Provincial Supervision of County Finance, it put forward theOverall target of the Reform of Direct Provincial Supervision of County Finance, thatis all the provinces would carry out the reform except ethnic autonomous regions bythe end of2012. At present, Yunnan province is promoting the reform pilot workactively, from the last ten-day of February, the pilot work first officially launched inZhenxiong、Xuanwei and Tengchong. And after summing up and improving theexperience gained in the pilot area, then gradually expand the scope of pilot area ofthis reform..But in the process of carrying out the reform in Yunnan province, there are manyspecific circumstances can not be ignored. Unlike Zhejiang and other economicallydeveloped coastal provinces in which the fiscal reform has already been verysuccessful, Yunnan locates in the southwest of China, it has a very big jurisdictionarea, the traffic facilities are under-developed and many minorities live in this area,the number of distressed area counties ranked first in the whole country, besides that,county’s economic strength is generally not strong, and the county’s financialresources are very weak. Poverty is still the largest situation in Yunnan, so ifpromoting this reform in the whole province, it will make all those distressed countiesconcentrated at the provincial level which originally dispersed in many different cities,thus it will bring enormous pressure to the provincial public finance and bring avariety of potential risks to the disressed area’s development, such as economic risk,financial risk, social risk and management risk, If we do not study those risks andformulate some preventive measures, not only will widen the gap between Yunnanprovince and other economically developed provinces and block up thecomprehensive development of Yunnan Province, but also affect the achievementswhich are already made in disressed areas, slow down the speed of anti-poverty, even cause those areas that have already thrown off poverty to become disressde again.For this purpose, this paper highlights a study into the potential risks that Yunnanprovince’s distressed areas will face in the process of implementing the reform of“direct provincial supervision of county” fiscal system. Through analyzing the risks’production, estimating and other aspects, this paper put forward some preventivemeasures with practical significance. Through positive analysis method to estimatethe degree of risk in distressed areas, the result shows that all the areas have differentdegrees of risk, therefore can not implement this fiscal reform in the rigid uniformity.