Government Bankruptcy And Financial Reconstruction: A Case Of Yubari City In Japan

There is no specific law or rule for the government bankruptcy neither the people's concept of it.But in foreign land,such as the small city in Japan,countries like Iceland, the bankruptcy of government is not rare.In the age of global financial crisis the problem of the bankruptcy of government is tend to be in increasing number.For example,the Iceland,the sovereign state,is facing the crisis of bankruptcy in the overwhelming surge.Therefore,China should possess the concept of government bankruptcy.The foreign scholars have found out the amazing numbers of the diet of the local governments in China,realizing its various forms,great numbers and its great potential crisis.In other words,although some local governments didn't announce the bankruptcy,in fact they have already bankrupted.To research the financial reconstruction and government bankruptcy means a lot to Chinese public financial building.Our neighbor country Japan has the real case of government of bankruptcy as well as the elaborate theoretical material.For our country,the experience of Japan has great financial crisis value.This essay has choose special case of bankruptcy of local government,Hokaido Yubari city,as the example.By the means of real case analysis, researching the problem of government bankruptcy and rebuild.Besides,this essay also discussed the general condition of Yubari city,how does it come close to bankruptcy step by step,what is the reason,.I will discuss them in these essay.The essay is divided into five parts.Partâ… is a summary of the theory and practice of government bankruptcy, explaining the definition of government bankruptcy combining practical evidences.In what kind of condition could a government department filed for bankruptcy? This paper introduces the methods how the USA accounting bankrupting of government,based on the seventh sector of the U.S federal bankruptcy law.Indicating the essential that government's duty doesn't bankrupt when the department bankrupted,and illustrating the effects of government bankruptcy specifically.Partâ…¡is the explanation about the theory and practices of financial reconstruction, introduces the financial reconstruction groups in Japan.In this part,firstly introduced the basic method of financial reconstruction,then gives descriptions of the ways financial reconstruction groups took,and the meaning of being a such group,and the overviews of some groups.These parts make bedding for the analyzing next.Partâ…¢starts the research of case Hokaido Yubari city.First gives overview of Yubari city,so that readers could have a impression of the city.Then introduces the relationship between central government and local governments in Japan,and the system of local governments.Partâ…£is the analysis of financial reconstructing of Yubari city.Summarizes the specific methods Yubari city takes to reconstruct the financial system,describes reduce of public services caused by cutting government's revenue and controlling government's expenditure,and the situation that people in the city sufered.Partâ…¤is the key to this paper,the inspiration to China.Firstly,describes the statement of Chinese local governments.According to the definition of financial reconstruction group by Japanese and others countries,many Chinese local governments' debt has reached great extent the degree of insolvency,which shows the importance of researches on government bankruptcy.We need to raise up awareness about bankruptcy of local governments,pay attention to the high risky of Strategic Investments of city developing,develop strategies of city's development according to the conditions of city,put the principles of Financial Reconstruction Group carried out by State Council into practice,using State financial aid carefully,Strengthen supervision, form the Information disclosure system of local government debt.All these are the great inspirations from bankruptcy of Yubari city to Chinese local government financial building.