UPPSALA UNIVERSITET Title of Thesis: “IMPROVING THE MECHANISM OF FINANCIAL INDEPENDENCE AT INSTITUTE FOR ETHNIC MINORITY AFFAIRS” Authors: Nguyen Huy Duan (Head) Truong Thi Bich Hanh Sutervisor: Dr. Sven Jungerhdm Local Supebvisor: Dr. Tran Thi Thanh Tu Class: 4B MPPM INTAKE 4 - Group 12 Hanoi, Match — 2010 ABSTRACT |. Name of Thesis: Improving the mechanism of financial independence at tte Institute for Ethnic Minority Affairs.
Degree: Master thesis of Public management program 3. Authors: Huy Duan Nguyen & Bich Hanh Truong Thi-MPPM 4B class (szroup 12) 4.Thanh Tu Tran Thi & Dr.Sven Jungerhem mn. Backgrounds : Tie modern revolution in science and technology with giant step forward: "a day equals twenty years" is impacting totally to every economies, every socidl systems over the world. In order to make science and technology becone background of industrialization and modernization, the Party and State advocate changing strongly the management of science and technology, and giving the power of total independence to public scientific and techrological organizations with the highest level of independence and clearzst mechanism.
Irstitute for Ethnic Minority Affairs, a public scientific non-business unit directly under the Committee for Ethnic Minorities, has assigned the right to finarcial independence and self-responsibility. After few years of implementation, the mechanism has been promoting more positive aspects than previous mechanism. However, the mechanism has shown some disacvantages and some regulations have not been suitable with Decree No 115/2005/ND-CP providing for the mechanism of financial independence and selfesponsibility of scientific and technological organizations. As a result, many problems have arose in implementing process, and the effectiveness of manegement has restricted, which need to be researched, summarized, amerded and supplemented.
Research Purposes The purposes of this thesis is to research, evaluate current situation of the mectanism of financial independence and self-responsibility in the Institute for Ethnic Minority Affairs, to find out the reason and the solution to improve hz operation capacity of the Institute. Research Method This is a qualitative research concerned with state management. The thesis can be applied to manage the Institute by the Committee for Ethnic Minorities. In this thesis we used some researching methods such as: nheritance method, dialectical materialism methods, statistical methods, methods of interview of relevant subjects, method of synthesis and analysis of available information and data.
On that basis, comparing and evaluating results to find out the advantages and disadvantages and to propose complete solutions for the mechanism of financial independence at the Institute. These methods are combined and interwoven throughout the thesis. Main resources are specialized books and magazines, related policies, and annual financial statement of the Institute. Results and Conclusion.
The mechanism of financial independence and self-responsibility is a new and an effective management mechanism to promote the role of the Institute and individuals. The question here is how to be independent and which is the theoretical and practical basis to propose the amendments and supplements of the right to financial independence and self-responsibility of the Institute, and the applicable possibility in the operation of Institute. Through researching process, we have found that the mechanism of financial independence and self-responsibility in the Institute for Ethnic Minority Affairs has enhanced the independence and initiative in financial management. It also has contributed to save cost, increased added-income for the staff.
However, at present, the connection between the management mechanism of structure, scientific research tasks, staff and finance of the Institute has not been clear and logical. Investing in resource increases but scientific product does not increase or increases slowly, not corresponding to sources invested and in danger of repeating the subsidy, lack of supporting from policies to the decentralization of the independence in affiliated units, and restrain staff's work motivation as well as outside sources supporting for the Institute’s activities. Because of that limitation, we proposed solutions and recommendations to related state management agencies to compete the mechanism of financial independence of the unit. Proposal for coming Research: As mentioned above, our study is only on the first step.
In order to have a comprehensive view about this, it’s necessary to have more profound analysis and comparisons with other technology and science organizations. On that basis, it will help to give overall and qualitative recommendations, contribute to modify mechanism and policy of independence in scientific and technological organizations. If we are financed further, we may submit a PhD thesis on this issue. Contribution of the Thesis: Basically, the Thesis has given out a quite overall policy frame of financial independence and self-responsibility in public scientific and technological organizations, the current situation of the mechanism of financial independence and self-responsibility in the Institute for Ethnic Minority Affairs, the causes of shortcomings and limitations in financial management of the unit; then, show out solutions and proposal to related state management agencies to complete the mechanism, and contribute to enhance researching science and technology capacity.
Common terms in the Thesis: Public scientific and technological organizations, mechanism, mechanism of financial independence, payroll, staff, civil servant. The Urgency of Research. 5) 2s Reséakch PHTĐDOSESsssesssiaisssdfiftiiitsdinidiiiiiiisililililstiitissgtEigESSX2Si3g1S8aEuã8ã%T 3. Objective and Scope of Research 7 4.
8 CHAPTER 2: THEORETICAL BACKGROUNDS OF THE MECHANISM OF FINANCIAL INDEPENDENCE IN PUBLIC SCIENTIFIC AND TECHNOLOGICAL ORGANIZATIONS. Overview of public scientific and technological organizations. Characteristics and classification ofpublic scientific and technological Of;2Ai1Z:IffOHS. The role of public scientific and technolog al organizations in the national economy.
The mechanism of financial independence at public scientific and technological organizations. Definition of the mechanism offinancial independence. The contain of the mechanism offinancial independence at public scientific and technological organizations 2. Independence in financial sources.
Independence on using the funds:. A The State’s policy on assigning the right offinancial independence to Buble scientific and technological organizations.2, Awareness of the mechanism of financial independencein public scientific and technological organizations. Qualifications and ability of management staff. The relationship and decentralization between autonomous units and management agencies.
The management of inflows and outflows of funds. Inspection and supervision: CHAPTER 3. CURRENT SITUATION OF THE MECHANISM OF FINANCIAL INDEPENDENCE AT INSTITUTE FOR ETHNIC MINORITY AFFAIRS. Overall of Institute for Ethnic Minority Affairs.
Functions and tasks:. The organizational structure of Institute for Ethnic Minority Affairs : 22 1. The mechanism offinancial management at Institute for Ethnic Minority Affairs. The achievements of Institute for Ethnic Minority Affairs.
The current situation of the mechanism of financial independence at Institute for Ethnic Minority Affairs in the period 2007 - 2010:. Current status of documents providing legal basis for self-financing regime. Sel esponsibility on organization and operation. Financial independence ead 2.
Current situation in the process of organizing and implementing:. On the human resources:. On the finance: 2. Regarding the scientific research.
General assessment of the status offinancial independence of Institute for Ethnic Minority Affairs in the period 2007 - 2010):. The results achieved: 34 Exists and limitatioi oD 2. 200043 SOLUTIONS TO IMPROVE THE MECHANISM OF FINANCIAL INDEPENDENCE AT INSTITUTE FOR ETHNIC MINORITY AFFAIRS. -43 1, The development trend of financial independence and orientation to 2020 2.
Some solutions to perfect the mechanism of financial independence at Institute for Ethnic Minority Affairs. Improving the awareness of the mechanism offinancial independence 44 2. Improving the quality of human resources. Innovating the management mechanism.4, Strengthening and diversifying non-business revenues.
Strengthening to control expenditures, implementing saving policy, and fighting against W@SÍ€ƒHÏH€SS.--e-ce-ce+ces©ssccs+s 2. Setting up the fund actively. Implementing the financial disclosure regulation well. Strengthening the financial inspection and supervision.
Strengthening the application of information technology and computerization in financial management. Recommendations to State agencies REFERENCE LIST SURVEY RESULT ABBREVIATION CEMA Committee for Ethnic Minority Affairs IEMA. Institute for Ethnic Minorities Affairs ND Decree GP Government UNDP United nations development programme ODA Official development assistance OECD Organization for Economic Co-operation and Development LIST OF DIAGRAMS, FIGURES AND TABLES Table 1. Structure of Institute for Ethnic Minority Affairs Table 2.
Status on the management and use of human resources Table 3. The mobilization and usage Table 4. Accepted scientific projects CHAPTER 1: PREFACE 1. The urgent need ofthe Research The modern revolution in science and technology with giant step forward: "A day equals twenty years" is impacting totally to every economies, every social systems over the world.
In the last decades, there has been in the world three typical development models: the highly concentrated planning mechanism such as was in the former Soviet Union and other socialist countries, the market mechanism as the U. and other developed industrialized countries, and the 3rd model that appeared in the developed countries is a mix model combining either the planning and the market mechanisms. In the recent years, there has been in the world two transition/movement with adjustment processes: countries (such as the socialist ones) having centralized planning economy are moving into the market mechanism (the countries in the socialist camp), countries (such as Japan, France, Korea, Taiwan .) with market economy are to strengthen the role of government in coordinating the macro economic development as well as science and technology (S&T). Regardless the type of economic model, most of the countries are considered S&T is an integral part of planning and socio-economic development program.
The forms expressing the S&T development plans usually are the R&D programs, research projects at national level. The mechanism of formation and implementation of these countries are tasked through the mode of selection, bidding, evaluation, assessment transparently, objectively and fairly. Funds are also allocated on the basis ofofficial decision with the formal contract with the selected supplier ensuring the optimal implementation conditions. Through the implementation of programs and projects of Science and Technology, countries will enhance their internal capacity, develop key economic sectors, and improve the competitiveness of products and services.
In the inevitable trend of world economic integration, besides the own capacity, developing countries like Vietnam, apply the achievements ofscience and technology and grasp new knowledge compulsorily to develop the 5 economy rapidly. Recognizing that problem, Viet Nam has set the goal: "To concentrate on building science and technology of our country toward modernization and integration, to strive to achieve average advanced level in the region in 2010, for the purpose ofscience and technology really become the foundation and motivation for promoting industrialization and modernization of the country"''. To achieve that goal, the Party and State advocates to change strongly in the management of science and technology, to make a fundamental change in management of science and technology in accordance with the socialism-oriented market mechanism, the characteristics of scientific and technological activities, the requirements of international economic integration, in order to improve markedly the quality and efficiency of scientific and technology performance; strengthen and use effectively the science and technology resources. Ministry of Science and Technology has submitted to the Government a major breakthrough policy in science and technology activity, which encourages public non-business units to switch to operate according to the mechanism of independence and self-responsibility under Decree No.I152005ND-CP , Decree No.96/2010/ND-CP amending and supplementing Decree No.115/2005/ND-CP and forming science and technology enterprises under Decree No.
Guideline and innovation of these Decrees are the State gives public scientific and technological organizations the complete independence on organizational apparatus, payroll, tasks and finance with highest level of independence and clearest mechanism. Institute for Ethnic Minority Affairs is a public non-business unit directly under Committee for Ethnic Minorities with the principal function is basic scientific research to serve for the setting up state management strategies, policies on ethnic minority affairs in Viet Nam. Following the innovation policy of scientific and technological management mechanism of the Government, on 20/08/2008, Minister-Chairman of Committee for Ethnic "The str y ofscientific and technological development of Vietnam to the year 2010 Minorities has issued Decisions No. 15/QD-UBDT on assigning the right to financial independence and self-responsibility for Institute for Ethnic Minority Affairs.
After some years of implementation, the mechanism has been promoting more positive aspects than previous mechanism, enhancing the right to independence and initiative in unit's financial management activity, saving costs, creating additional income for workers.