Public-Private Partnerships (PPPs), as an important mean to establish a standardized local government debt financing mechanism, relieve the pressure of local government debt, resolve the fund shortage of urbanization and promote supply-side structural reform, has increasingly become the main mode and source of China's infrastructure investment and financing. It has made an important contribution to the increase of supply scale, quality and efficiency in public services and infrastructures. But with the rapid promotion and widespread, local government provided illegal guarantees of fixed income and repurchase, or beared the loss of principal, issued Local Government Financing Vehicles(LGFVs) debts, and even disguised government purchasing services, which have make the PPPs alienated into a new financing vehicles. This paper defines the concept and scope of local government implicit debt, analyzes the tool characteristics of PPPs, the necessary and sufficient conditions for debt governance function of PPPs, and the formation mechanism, manifestation and evolution path of local government implicit debt. Then several countermeasures of implicit debt governance and risk prevention strategies under PPPs are put forward, including clarifying the relationship between the government and the market, promoting PPPs debt governance through win-win cooperation, improving PPPs laws and regulations, strengthening PPPs performance management, and improving PPPs risk sharing mechanism.
Published in | Journal of Investment and Management (Volume 7, Issue 5) |
DOI | 10.11648/j.jim.20180705.11 |
Page(s) | 133-142 |
Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
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Copyright © The Author(s), 2018. Published by Science Publishing Group |
PPPs, Local Government, Implicit Debt, Formation, Governance
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APA Style
Lizhen Li, Xiumei An. (2018). Local Government Implicit Debt Under China’s Public Private Partnerships: Scope, Formation and Governance. Journal of Investment and Management, 7(5), 133-142. https://doi.org/10.11648/j.jim.20180705.11
ACS Style
Lizhen Li; Xiumei An. Local Government Implicit Debt Under China’s Public Private Partnerships: Scope, Formation and Governance. J. Invest. Manag. 2018, 7(5), 133-142. doi: 10.11648/j.jim.20180705.11
AMA Style
Lizhen Li, Xiumei An. Local Government Implicit Debt Under China’s Public Private Partnerships: Scope, Formation and Governance. J Invest Manag. 2018;7(5):133-142. doi: 10.11648/j.jim.20180705.11
@article{10.11648/j.jim.20180705.11, author = {Lizhen Li and Xiumei An}, title = {Local Government Implicit Debt Under China’s Public Private Partnerships: Scope, Formation and Governance}, journal = {Journal of Investment and Management}, volume = {7}, number = {5}, pages = {133-142}, doi = {10.11648/j.jim.20180705.11}, url = {https://doi.org/10.11648/j.jim.20180705.11}, eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20180705.11}, abstract = {Public-Private Partnerships (PPPs), as an important mean to establish a standardized local government debt financing mechanism, relieve the pressure of local government debt, resolve the fund shortage of urbanization and promote supply-side structural reform, has increasingly become the main mode and source of China's infrastructure investment and financing. It has made an important contribution to the increase of supply scale, quality and efficiency in public services and infrastructures. But with the rapid promotion and widespread, local government provided illegal guarantees of fixed income and repurchase, or beared the loss of principal, issued Local Government Financing Vehicles(LGFVs) debts, and even disguised government purchasing services, which have make the PPPs alienated into a new financing vehicles. This paper defines the concept and scope of local government implicit debt, analyzes the tool characteristics of PPPs, the necessary and sufficient conditions for debt governance function of PPPs, and the formation mechanism, manifestation and evolution path of local government implicit debt. Then several countermeasures of implicit debt governance and risk prevention strategies under PPPs are put forward, including clarifying the relationship between the government and the market, promoting PPPs debt governance through win-win cooperation, improving PPPs laws and regulations, strengthening PPPs performance management, and improving PPPs risk sharing mechanism.}, year = {2018} }
TY - JOUR T1 - Local Government Implicit Debt Under China’s Public Private Partnerships: Scope, Formation and Governance AU - Lizhen Li AU - Xiumei An Y1 - 2018/11/19 PY - 2018 N1 - https://doi.org/10.11648/j.jim.20180705.11 DO - 10.11648/j.jim.20180705.11 T2 - Journal of Investment and Management JF - Journal of Investment and Management JO - Journal of Investment and Management SP - 133 EP - 142 PB - Science Publishing Group SN - 2328-7721 UR - https://doi.org/10.11648/j.jim.20180705.11 AB - Public-Private Partnerships (PPPs), as an important mean to establish a standardized local government debt financing mechanism, relieve the pressure of local government debt, resolve the fund shortage of urbanization and promote supply-side structural reform, has increasingly become the main mode and source of China's infrastructure investment and financing. It has made an important contribution to the increase of supply scale, quality and efficiency in public services and infrastructures. But with the rapid promotion and widespread, local government provided illegal guarantees of fixed income and repurchase, or beared the loss of principal, issued Local Government Financing Vehicles(LGFVs) debts, and even disguised government purchasing services, which have make the PPPs alienated into a new financing vehicles. This paper defines the concept and scope of local government implicit debt, analyzes the tool characteristics of PPPs, the necessary and sufficient conditions for debt governance function of PPPs, and the formation mechanism, manifestation and evolution path of local government implicit debt. Then several countermeasures of implicit debt governance and risk prevention strategies under PPPs are put forward, including clarifying the relationship between the government and the market, promoting PPPs debt governance through win-win cooperation, improving PPPs laws and regulations, strengthening PPPs performance management, and improving PPPs risk sharing mechanism. VL - 7 IS - 5 ER -