How to look at the pros and cons in China's government procurement system

Government procurement, refers to the state organs at all levels, institutions and organizations, the use of financial funds to purchase the centralized purchasing directory formulated in accordance with the law, or the procurement of goods, works and services above the limit standard behavior. Government procurement not only refers to the specific procurement process, but also procurement policy, procurement procedures, procurement process and procurement management in general, is a system of public **** procurement management, is a government behavior. This paper discusses the advantages and disadvantages of government procurement, focusing on the disadvantages, and puts forward suggestions on how to improve the government procurement system.

The advantages of government procurement:

First, government procurement to improve the efficiency of the use of government funds

Second, government procurement is an important economic means of macro-control

Third, the government procurement in line with the objective requirements of the internationalization of the economy

Fourth, government procurement is an important step in the fight against corruption and advocate honesty

The main problems existing in the government procurement :

I. Problems of entrusted agents in government procurement

"The procurement process generally forms a four-level chain of entrusted agents such as 'taxpayers - the government - the finance department - specialized government procurement agencies - procurement officials'."

The initial taxpayers, who do not have managerial and decision-making powers and therefore cannot make decisions for profit by entering into contracts, want to enjoy the welfare improvements that come as a result of government procurement. Procurement officials, as the ultimate parties in this principal-agent chain, have a decisive role in procurement decisions. As rational economic beings, they naturally want to maximize their profits by using their authority as much as possible, thus creating a conflict of interest with the agent (the taxpayer) and a principal-agent problem.

The game analysis of government procurement

While China's government procurement has tried its best to improve the supervision mechanism and evaluation mechanism, and through the bidding and tendering openness to avoid corruption, bribery and other phenomena detrimental to the economic efficiency of the procurement process, but due to the "two libraries of construction is not perfect (technical experts and suppliers)", the supervision mechanism is unsound and other issues have not been resolved at all, the competitiveness of the market has not been solved. However, due to the "imperfect construction of the two pools (technical expert pool and supplier pool)", inadequate supervision mechanism and other problems have not been fundamentally solved, the competitive nature of the market has not been fully realized. This directly leads to the existence of imperfect competition in the government procurement market, thus contributing to the formation of oligopoly, and then produce all kinds of gaming behavior. Therefore, the final Nash equilibrium of this game matrix is that both sides choose to collude, at this time, the procurement officials to obtain rent-seeking opportunities, the supplier can get a monopoly to obtain a premium income. Since collusion benefits both parties, they then form an interest ****somebody, thus self-protecting themselves ****same against the taxpayers. This explains why corruption and bribery of procurement officials are common.

Three, government procurement in the analysis of social welfare benefits

The government as the main provider of public **** goods, in order to play the utility of public **** goods, it must distort the market's original equilibrium point. At the same time, in the reality of economic society, to meet the government procurement optimal solution of the harsh conditions is simply impossible, thus the emergence of the government public **** goods procurement activities in the process of inefficiency and the results of the activities of the non-ideal, i.e., the government failure, which makes the government procurement can not achieve an ideal state.

Improvement of the government procurement system:

I. Strengthen the understanding of the government procurement system.

First of all, to strengthen the publicity of the awareness of the government procurement system, to improve the understanding of the government procurement system. Although the government procurement system in the West has a fairly long history, but in China is still new. Whether all parties can establish this system of urgency, necessity and its important role in the market economy conditions to form a unified and profound understanding of the subjective impact on the establishment of China's government procurement system.

Two, the clear establishment of a unified government procurement agency.

Combined with the actual situation in China, the centralized purchasing project in government procurement should be a full-time agency such as the government procurement center unified organization procurement. The government procurement center is formed by the government and under government authorization has the responsibility of organizing the administrative institutions major and centralized procurement affairs, and directly carry out the procurement business department. The Government Procurement Center shall carry out its business in strict accordance with government procurement regulations and other relevant procurement policies. Government Procurement Center in accordance with the actual situation can be some of the bidding affairs entrusted to social intermediary organizations.

Three, strengthen the supervision in government procurement.

Government procurement behavior is an economic activity, involving economic interests, there will be people to take risks. For some irregularities in the government procurement system, we must be strict control, can not be allowed to develop freely, otherwise the government procurement system will become part of the road to wealth for those in power. Therefore, we must strengthen the supervision of the government procurement system and promote the establishment of government procurement supervision mechanism. First of all, we have to set up an internal supervision and control mechanism in the government procurement department, and let it gradually form a supervision system with the government procurement departments which has both interconnection and mutual constraints. Secondly, we should further strengthen and re-examine the ex post facto supervision after the government procurement activities, so as to keep every gate well and eliminate the irregularities in the government procurement. Finally, but also gradually increase the strength of social supervision and public opinion supervision, accelerate the construction of government procurement work in all aspects, the whole process of supervision mechanism. Hidden in the government procurement system under the illegal activities can not hide.

Four, the construction of professional teams in the procurement sector.

In the face of strong policy, involving a wide range of government procurement activities, the need for procurement staff to master the knowledge of the social sciences and natural sciences. According to the characteristics of government procurement work and the current situation of the procurement team, at the current stage, the procurement staff should firstly learn the professional knowledge of government procurement as well as learn the basic theories and techniques of government procurement, learn the international and domestic experiences and lessons of government procurement, and learn the policies and legal knowledge about government procurement. Then, they should apply what they have learned to the actual operation, and only when they encounter problems in the actual operation can they gradually make up for the defects of their own business ability. And regular induction training for procurement staff, at the same time, you can invite expert teachers to provide guidance and communication for procurement staff, introducing the basic content of China's contract law, the form of the contract and the relevant requirements for signing the contract, as well as the bidding and tendering procedures, the preparation of the bidding documents, bid evaluation methods. Strengthen the comprehensive business capacity of procurement personnel. Strive to build China's government procurement team into a professional strong business capacity of the team.