Research On The Financial Issues Of Chinese Emergency Material Reserves

The emergency material reserve is the material base to respond to and overcome precipitating events effectively, and the key content of the modern emergency management. The author does a deep analysis on the problems and causes in the emergency material reserve and puts forward some suggestions to improve the fiscal management of the emergency material reserve.In the prolegomenon, the author defines the connotation and denotation of precipitating events, emergency management and the emergency material reserve and combs the related articles. In the second part, the author states the public goods theory, the fiscal decentralization theory and PPP theory and then regards the precipitating events as a kind of negative public goods. Therefore, the governments should take charge for the emergency material reserving works. In the meantime, the governments should fully utilize the market mechanism in the process of providing emergency material reserve, and attach importance to the cooperation of government and enterprises, with an aim to achieve a win-win in.the cooperation. In the third part of this paper, the author mainly discusses the basic information of our emergency material reserve. The author reviews the main process of our emergency material reserve’s establishing and developing. Then the author summarizes and discusses the basic duties of each department and the duty coordination problems.On this basis, the author makes a deep research on the related fiscal problems in our emergency material reserve, taking the relief goods reserve for example. After that, the research is turned into the analysis of its causes, and the paper summarizes the above problems into the following three aspects:one is that the market mechanism hasn’t been integrated into emergence material reserve management, the other is that the related mechanism design lacks incentive and constraint mechanism. The last one is that the refining level of emergency fiscal management is not high enough. In the final part, the author also raises some specific suggestion on improving the fiscal management of emergency material reserve. Firstly, we should set up the emergency material reserve funds, introduce the mechanism of substituting subsidies with rewards, and establish the coordinating mechanism of plan and budget to guarantee the emergency material reserve. Secondly, we should use market mechanism to improve the management of physical material and probes application of contract reserves and production capacity reserves, in order to optimize the emergency material reserve ways. Thirdly, we should constantly refine the operation specification and monitoring measures of urgent procurement to standardize the urgent procurement of emergency material. Lastly, we should further perfect financial accounting mechanism of emergency material reserve.