Study On Non-state Capital Investing Infrastructure And Public Utility

Although China's infrastructure construction has been developed rapidly and its place and role in economic development and social stability have been improving continuously since the reform and opening up to the outside, it is still relatively weak for a developing country and can hardly meet the demand of the high economic growth. The scaled investment is urgently required for developing infrastructure. However, the governmental capital has been the only investment source of infrastructure up to now because of many reasons. It has greatly restricted the development of infrastructure and social economy of China.Only the governmental capital can hardly meet the development of infrastructure. The increase of the infrastructure investment must be paced with the speed-up of the reform on infrastructure investment and fund-raising system. The reform is crucial not only to the development of infrastructure itself, but also to the benefits of every citizen and the smooth establishment and realization of the market economy. The Third Plenary Session of the 16th CPC Central Committee put forward for the first time that the non-governmental capital is permitted to enter the fields of infrastructure, public utilities and others that are not prohibited by the Laws and regulations. The adoption of this policy would be positive to the construction of infrastructures and public utilities and would provide more opportunities for the non-governmental capital to invest in infrastructure. It is just against this background that this paper does a comprehensive, systematic and deep research on the topic of non-governmental capital investing in infrastructure.The paper elaborates from the theoretical perspective the implications and features of infrastructure as well as the approaches on realizing the effective supply. The objective and methods on infrastructure privatization in the Western developed countries are introduced in this paper; the changing process of China's infrastructure investment and fund-raising system is reviewed; the status, problems and contributing factors of infrastructure investment are concluded; the necessities, feasibilities and entering path alternatives are analyzed; the investment scope of non-governmental capital in infrastructure and the barriers existing in people's concepts and system are demonstrated and the viewpoint that the government shall make the unified and overall plan, set up the policies, introduce the information, organize and coordinate, provide services and legislative protections for the non-governmental capital to enter the infrastructure field is put forward in the final part.The viewpoints of this paper include: the first, the comparison analysis on the infrastructure privatization in the western countries indicates that the different objectives on infrastructure privatization determine the different methods on reform. However, there is still similarity existing among different countries. That is, all the reforms are advanced on the basis of legislative framework. Borrowing the western experiences, the paper holds that the objectives of the marketization of China's infrastructure shall not be unitary, but be comprehensive because of the complicated background with many problems and conflicts. That means the reform shall not only focus on releasing the fiscal burden, but also focusing on increasing the investment on infrastructure and furthermore, improving the service quality and operating efficiency. Therefore, in order to achieve a comprehensive objective, China's infrastructure reform can only be implemented by letting the non-governmental capital enter this field through releasing supervision and control. The second, a new opinion on how to divide the investment scopes between non-governmental capital and governmental capital in infrastructure is put forward after analyzing the investment theory on public goods, quasi-public goods and private goods. The paper holds that the investment subjects, operation model, fund-raising channel and ownership of an infrastructure...