The Study On The Risk And Control Of Local Government Liability

With the development of the reform and opening policy, the economy system has changed greatly in China, and the contradictions and problems in deeper level now become obvious. The global finance crisis in 2009 and the liability crisis of Greek government intensified the series of problems upon the whole world within which the local government liability risk is the most serious one. The liability risk of local government has been concerned widely in China as well as in world. The liability risk connects closely with economy, politic and society, how the risk is resolved impact on many aspect of our life directly. In this thesis, lots of data and table are used to study the liability risk of local government in our country with the method of the combination of quality and quantity and the combination of regulation and demonstration.The introduction of this thesis explains the background, aim and meaning of this study. This part also gives a summary of the status in quo, the concept and method about this study in domain and abroad. The technical route of the thesis is contained in this chapter. Then some relevant conceptions and detail classifications of local government liability are introduced. This part also sets forth some relevant notions of government liability and government liability risk and analyzes the generative mechanism of local government liability on static aspect and dynamic aspect. The analysis on apparent liability and concealed liability of local government are analyzed on the basis of these theories. The quantitive analysis is made based on the qualitive analysis to explain the status in qua of local government liability. The fourth chapter analyzes and summarizes the main actual evaluation indexes of local government liability risk and some experts'ideas will be used to conduct the analysis of applicability on those indexes. Some pertinent and feasible indexes, such as the deficit rate, economic growth rate, and financial centralization rate and debt dependence will be drawn from those indexes as the sample index in the following study of demonstration to evaluate the continuity of local government debt. Comparing Greek in which the liability crisis is the most serious with China and America in different stratification to get a descriptive analysis. Then comparing data between provinces in China and taking Harbin as example to conduct the demonstration by using the result get above in order to warn the government to guard the liability risk. At last some proposals for the control of local government liability risk will be offered on the basis of the conclusion made ahead. These proposals include decreasing the risk of government liability by corresponding the economic growth and the cost of debt; warning the government liability in advance by putting the evaluation of the local government liability risk in practice and dominating the size of liability by consummating the management system of the local government liability.