A Study On The Paths Of Safeguarding Public Financial Security In Haiti

The public finance is the branch of economics that studies the taxing and spending activities of government.It is both an ancient and recent topic,since it has been playing a significant role in the field of public financial security.In order to maintain or strengthen an economic stability,many countries,especially developed countries,and some international organizations have decided to put more emphasis on the economic security.But the term public finance is something of a misnomer,because the fundamental issues are not financial(that is relating to money).Rather,the key problems relate to the use of real resources.For this reason,some practitioners refer the label sector economics or simply public economics.Public finance encompasses both positive and normative analysis.Positive analysis deals with issues of cause and effect,for example,“if the government cuts the tax rate on gasoline,what will be the effect on gasoline consumption?”.Normative analysis deals with ethical issues,for example,is it fairer to tax income or consumption? Modern public finance focuses on micro-economic functions of government,now the government does and should affect the allocation of resources and the distribution of income.For the most part,the macroeconomic functions of the government use of taxing,spending,and monetary policies to affect the overall level of unemployment and the price level are covered in another field.Suppose for instance these assumptions(parameters)didn’t exist? What could be the main role played by the government in the economy? Only a very small government that protects property rights and provides law and order would seem appropriate.However,even if an allocation of resources is Pareto-efficient,it may not be socially desirable.A society may not be willing to trade some efficiency in return for a fairer distribution of resources among its members(Although “fairer” may be hard to define).Hence,even if the economy is Pareto-efficient,government intervention may be necessary to achieve a fair distribution of real income.Furthermore,real world economies may not satisfy the two assumptions required for Pareto-efficiency.The first assumption is violated when firms have market power and raise their prices above competitive levels.Monopoly is an extreme example.The issues associated with market power are generally dealt with in the field of industrial organization,not public finance.The second assumption is violated when markets for certain commodities do not emerge.After all,if a market for a commodity does not exist,then we can hardly expect the market to allocate it efficiently.For example,there is no market for clean air.In effect,individuals can use up clean air at a zero price.That particular resource is not used efficiently.Nonexistence of markets occurs in a variety of situation;each one opens potential opportunities for the government to intervene and improve welfare.In effect,then the list of market failures provides the public finance agenda.In China,since the reform and the opening up,budget deficits has become normal in different level of the government.Currently,in this new moment of huge economic transition and social transformation of China,tough fiscal regulation and control especially public financial security issues must be taken seriously by the state authorities however,the government auditing as an important assurance of governance which China will have to focus on.Government auditing is an important assurance for maintaining governance order.Forming and maintaining good economic and social order are necessary for governance and make up the basic premise and realization approach.As early as warring States period more than 2,000 years ago,Mozi proposed that “one unified standard should apply to a country;a national fundamental function is necessary to prevent chaos.“Hans Kelsen,representative of the normative school law,points out that” The State is the community established in accordance with domestic laws and order,and the State as a legal person is the personification of this community or domestic laws and order constituting this community.“Government auditing function of safeguarding national governance order is mainly reflected as follows: Firstly,by supervising and restricting the situation of administrative power exercise,government audit offices reveal,investigate,and punish major violations of financial laws and disciplines,improve the responsibility investigation and accountability mechanisms,and promote strengthening administration and management of administrative affairs according to law.Second,by supervising the situation of following market economy rules,government auditing can reveal in a timely way behavior violating market rules,and detect and check errors,so as to prevent economic risks and maintain market economy order.Third,in accordance with the law,government audit offices on behalf of the masses and taxpayers,supervise the duty performance of government,departments,units,and state-owned assets management units,and reports to the people,which helps improve the level of national governance.The National Audit Office of China advocates that government auditing must hold socialism with Chinese characteristics as its soul and guideline,and scientific audit concepts should be firmly established.The fundamental objective of auditing is to protect people’s fundamental interests.In 2013,the 21 st International Organization of Supreme Audit Institutions Conference was held in Beijing,issuing the Beijing Declaration,stressing that it is the common objective for supreme audit institutions to promote good national governance.The declaration provides an important basis and basic principles of setting the future development direction,tasks,and goals for audit offices of various countries.The International Audit Organization Strategic Plan(2011-2016)also clearly requires that supreme audit offices of all countries should exert more efforts to combat corruption and strengthen accountability,transparency,and good governance.It can be foreseen that with the development of audit practice and better performance,theories of auditing for national governance will also be continuously enriched.So,a study in depth on the government audit remains actually crucial to perform in order to demonstrate how significant it is for state authorities to bet on government audit to safeguard public financial security,which will help them to promote the achievement of national governance objectives,and also contribute to improve the promotion of audit function to maintain public financial security and help to deepen the curiosity of much more people to study the government audit and finance theory.Our study will focus more on the paths of China’s government audit to safeguard the public financial security,and then propose to the Haiti’s government some advises on how it may also safeguard its public financial security based on the China’s government audit experiences.Our research is divided into several chapters which are designed as follow:Chapter 1: Introduction.Which is divided into five sections;which are: Background and implications,objectives and research question,methodology,and expected contributions?Chapter 2: This chapter is designed as follow the literature review,we explored government audit as a whole,we analyze government audit in China as well as government audit in Haiti,then we summarize the sections that we so far developed,we continue with our main task which is to elaborate the paths of safeguarding public financial security in China,the situation of public financial security in Haiti,maintaining our focus on how the previous literature may impact the public financial security,and finally we made a conclusion for the whole section.Chapter 3: This segment of our research is focused on the framework and theoretical analysis which also included fundamental series to support our research,we analyze in deph the fundamental concept of this study which is safeguarding public financial security,factors that contribute to put this focus on Haiti as a core for this study — influential factors for government audit in Haiti,in the logic to implement our study we develop in this segment an assumption as experimentation of the China’s experience on Haiti,then we put forward some theories of public financial security and mechanisms,functions and orientation of the public financial security,finally we end up to put our focus on the public fiscal law in terms of its requirements,to conclude the chapter we produce a comparison between Haiti and China’s public financial security.Chapter 4: This chapter describes the condition of the Haiti’s institutional background,how government audit helps to safeguarding public financial funds,we present the finance characteristics and requirements;we explained the substances and factors of financial security system,and finally emphasized Haiti’s public financial security position.Chapter 5: This chapter is divided into four specific segments which are the research design,the research model,the definition of variables,and finally the source of our data.Chapter 6: This chapter is very significative for our study since it produces the final results of our econometrics experimentation,we explained all the parameters of the descriptive statistics,the result of random effect modeling using region as the cluster variables,the robustness test,and at the end of this chapter we produce our empirical research.Chapter 7: This is the last chapter of our study and it is divided into five segments,after fulfilling our research we then made a conclusion for the whole study,we produced a summary,the implication of our research,we then figured out the limitation and open the door for future studies,finally we complete this research with the references and acknowledgements.