A Study On Local Municipalities Financial Management And Finance-Source-Expansion-Oriented Strategies In Taiwan

Taiwan as a typical island region demonstrates island economy,relies largely on international trade and thus has not choice but to face various challenges from the international markets.Furthermore with advert factors of natural resources,both shortage and unevenness,Taiwan sees financial difficulties in its 319 municipalities other than urban-resulted from geographical environments that readily lead to harsh financial situation, and defective democracy and unhealthy election conventions that lead them into debts.In view of these facts,the present study aims to explore some practical and useful financial source expansion plans as contingency strategies for the rural municipalities to survive and grow in addition to expenditure saving measures.More precisely the study confines the exploration only within the domain of the financial affairs of the local municipalities of Taiwan.The study explores the financial management and financial source expansion plans for rural municipalities in Taiwan and puts them into five parts(in 9 chapters in total)as the follows in brief:Part 1(Chapters 1,2 & 3):explains the reasons why it is vital to pinpoint and address the issues of financial management and financial source expansion plans for rural municipalities in Taiwan.The study conducts a literature review to disclose the municipalities' organization features and their struggles for financial independence during the period between 1945 and 1959,and how they escaped from financial difficulties through applications of financial principles such as demand-supply theory,etc.Then,the study analyzes comparatively the data between previous and present financial situations, for better realizing them both theoretically and practically according to the actual circumstances.These steps help clarify the goals and objectives of the study.Part 2(Chapters 4 & 5):These mainly deal with the systems and frameworks of rural municipalities' financial management.It is through exploring the financial revenue and expenditure theories and guidelines, analyzing current financial revenue-expenditure mechanisms as well as the existing practice systems such as farming,welfare and supplementing funding etc,the study derives some methods for managing and controlling the public finance. Part 3(Chapters 6 & 7):This part analyzes the revenue and expenditure balance of rural municipalities and strengthens studies on the financial policies and financial source expansion strategies of rural municipalities.The study takes a review over the financial policies found during the period between 1950 and 1992 and analyzes the financial theories applications,and eventually develops the innovative counter measures and strategic schemes also proposes some effective strategic maps for 21^stcentury realities.Part 4(Chapter 8):This part tries to develop the business investment plans and projects for expanding the financial sources.Further this part tries to improve municipality financial conditions by implementing the financial policy objectives of making use of building bone ash towers and costal recreation areas;next the study conducts a questionnaire survey and empirical analysis,then the results prove that the financial status is actually improved-this implies the innovative features and significance.Part 5(Chapters 9):This part draws the conclusion,innovative points and perspectives of the study.The study demonstrates that by making good use of theories,practices and innovations the goals of finance management for establishing the healthy and robust financial systems, expanding financial sources,and promoting competing forces for sustainable operations as well as steady development can be achieved; hence the study results should serve as reference and inspiration source to those who are interested in the theme.The present study establishes the innovative elements,innovative strategies and innovation-encouraging environment through making use of the theories,frameworks and methods mentioned in this study; furthermore also promotes steadily the motivations for innovation, abilities for innovation,returns and surplus of innovative,so as to ensure that rural municipalities are competent in public financial management and finance source expansion-so that the rural municipalities will maintain their sustainable development securely and strategically.