A Study On Public - Private Cooperation In The Supply Of Public Goods In China

Public goods meet the public needs of people’s life and development. With thesustainable development of economic and society, the public needs of the peopleconstantly enrich and improve.The supply of public goods should be synchronousgrowth. Worldwide, our country is in a stage of rapid development, the speed ofurbanization accelerated, people’s demand for public infrastructure and publicservices is growing rapidly. On the other hand, due to the lack of capital, technologyand management, the public sector can’t satisfy people’s growing public demand,this bring no small pressure to the public sector. In the field of public services,marketization reform is inevitable. Since the 1990 s, public-private-partnership(PPP)gradually became the various countries’ government departments to explore the pathof the reform of public service supply and is widely used in the public service invarious fields. PPP practice in some developed countries represented by the Britishhas been quite mature. Nearly two years, the government has stepped up the reformstrength of public-private partnerships, which opened the prelude of PPP practice inour country.Public-private partnership is the assignment of the right and responsibility inthe public products supply for the public sector.Public and private parties establishlong-term contract relationship for the public goods supply in the design,construction, financing, and(or) management and use their advantages to bettermeet the public demand and achieve the goal of win-win. PPP is the public goodssupply mode which between government monopoly in the supply and privatizationin the supply, introducing social capital through market mechanism, and realize theimprovement of the efficiency of public goods supply. Through the understanding ofthe public product theory, prove the possibility and trend of public-privatepartnerships; Apply cooperation ideas and cooperative economics theory topublic-private partnerships, discusses its feasibility.The different amount of duties of private sector represents the differentparticipation degree of PPP, namely different model of PPP. Public-privatecooperation pattern is varied, the essence of which is the public product supplyrights distributed between the two departments, public or private. Rights to bedivided the thinner, the more models of PPP, the continuous processing of rightsegmentation is the limit thinking of PPP model division. Public-private partnershipaims to improve the efficiency of public goods supply. Public-private cooperationmechanism is the factors affecting the efficiency of PPP, including public-privatepartnership formation mechanism, control allocation, risk sharing mechanism,supervision mechanism, income distribution mechanism, the adjustment mechanismand so on. There is no obvious boundary between the divisions of public-privatecooperation mechanism, they are just different aspects of cooperation efficiency ofimprovement or leakage.Theoretically, the public-private cooperative surplus is the conditions offeasibility of PPP, it means more cost advantage than traditional supply ofgovernment monopoly. Cooperation surplus brings the improvement of the overallsocial welfare, further divided into the interests of the public sector, private sectorprofit and consumer surplus, among them, a modest profit realization of the privatesector is the core, which is the precondition of cooperation surplus allocatedbetween the other two. From the practices of PPP in our country, theory of feasiblecondition is not easy to be satisfied, but easy to break.Our country is in the start stage of public-private partnership, there are manyproblems and difficulties. Problems in public-private partnerships in China include:the abuse of PPPs, government departments take the way of compromisecooperation for the introduction of social capital, which cause waste of publicresources; Public-private cooperation degree is not high, not big enough to leveragethe social capital; PPP models are lack of diversity, and not match to the rich PPPpractice; PPP process is full of chaos, the cooperation mechanism is not sound;Unclear orientation role of the government, which bring damage to the interests ofprivate capital and the public; Private sectors are lack of cooperation experience andnot equally treated. The difficulties in the public-private partnership in our countryincluding: public sector’s cooperative dynamic source; Public sector’s creditconstraints; Skillful use of PPP models and the realization of a modest profit of theprivate sector.Public-private partnership reform in our country is a systematic project. Wemust not act too hastily and draw lessons from foreign mature experience. Weshould base on the actual conditions of our country. Specific measures include, setup perfect public-private cooperation related laws and regulations; Play a guidingrole of the government departments; Build effective monitoring network; Set upreasonable risk-sharing mechanism; Ensure appropriate profits of the private sector;Cultivate a public-private market mechanism and so on.