Study On The Development Of Our Local Investment And Financing Platforms For Infrastructure

In response to the 2008 outbreak of the world economic crisis, our country increased infrastructure investment, which created a lot of pressure to local governments. As the national executor and the implementer of the financial policy, the local government solved the problem of shortage of funds through the development of investment and financing platforms for infrastructure and the results were significant. However, because there are many problems about the local investment and financing platform for infrastructure, the risk is more prominent. Our country had set out the policy of clearing and standardizing the local investment and financing platforms to ensure the orderly and healthy operation of society and economy in 2010. The future transition and development of local investment and financing platforms for infrastructure seemed particularly important.This paper reviews the background and development process of the local investment and financing platforms for infrastructure and describes the operating system of the platform. Through the way of theoretical research and empirical analysis, the paper discusses systematically the problems and potential risks of local investment and financing platforms for infrastructure. To take highway infrastructure projects for an example, this paper analyzes the influence clearing and standardizing local investment and financing platforms for infrastructure exerts on infrastructure construction. Finally, the paper proposes the reform and development direction of the local investment and financing platforms for infrastructure.After details study, this paper concludes that the investment and financing platforms for infrastructure have some problems, such as the single channel of financing, excessive debt and so on. The risks caused by those problems have a "domino effect". As to the highway infrastructure construction, this paper considers that cleaning the local investment and financing platforms has the greatest impact on the ordinary trunk highway construction. Local investment and financing platforms for infrastructure should speed up reform and innovation and promote the development of local investment and financing platforms through the reform of taxation system, bigger and solid investment and financing platform, expanding multiple and marketizational financing channels and constructing multiple sound debt system.