Research On The Management System Of Chinese Urban Infrastructure Privatization

Because of huge investment need, long investment-return period, and close relations to public welfares, infrastructure industries are usually invested and managed by government in many countries for a long period. Until 70's 20th century, under the pressure of high unemployment rate, high inflation rate, and low economic growth rate, UK and other western countries fist kicked off the reform in infrastructure area, which objective is to break the monopoly, open the market, permit private capital in , finally, build mechanism of multiple investment and competition.Like other countries, Chinese urban infrastructure industry has suffered capital shortage and low efficiency a lot. With contradictions between infrastructures product supply and demand became deeper and deeper; our country began the infrastructure privatization reform. Though nearly 10years past, there are still many problems need to be resolved. That's the reason for research on the management system of Chinese urban infrastructure privatization.By summarizing the current research achievement, it was found that they are mainly focus on the features change of infrastructure industry, and the reasons, influences, models and regulations of infrastructure privatization. Their focuses are limited and insufficient, and comprehensive research on urban infrastructure privatization is needed. Natural monopoly theory, property theory, principle-agent theory, and public selection theory can used to analyze the practice of infrastructure privatization, and policy science theory and new public management theory help to guide the establishment of infrastructure privatization management system.Fist, some related definitions of urban infrastructure privatization management system are identified. Urban infrastructure refers to urban economic infrastructure, as opposed to social infrastructure, which means long stand infrastructure engineering, equipment and utilities that is necessary for urban living and production. It mainly contains power, communication, water, gas, public traffic, urban road, and sewage, urban gardening etc. urban infrastructure privatization means increase the participation of private sectors, and decrease that of public sectors in these areas. Further, urban infrastructure privatization management system means the collection of management contents conduct by government in order to ensure the effectiveness of urban infrastructure privatization. On the basis of management content, the framework for urban infrastructure privatization system is established, which contains planning system, organizing system, operating system, and controlling system. The framework shows the content and flow of the urban infrastructure privatization management system. Planning system aims to outline the strategy and objective systems; organizing system aims to organize the infrastructure privatization practice effectively; operating system aims to resolve concrete problems of urban infrastructure privatization practice, and controlling system aims to ensure the whole practice along the set way. Four sub-systems are deeply studied respectively in the following.On the research of Chinese urban infrastructure privatization planning system, current problems analysis shows that there is no strategic planning and clear objectives. Then, on the basis of environmental analysis for the perspectives of economic, discipline, market and mindset, the strategic plan for Chinese urban infrastructure privatization was proposed. Between the selection of sudden change and gradual evolution, analysis of the reason, environment and original state of Chinese urban infrastructure privatization indicates that the combination of the two is preferred. That is, sudden change on the mechanism level, and gradual evolution on the executive level. As for the reform order, by analyzing the relationships between private property and competitive mechanism, competitive mechanism should be built up earlier than the transfer of national property. By analyzing the relationships between private property and regulation, regulation framework should be established earlier. Then, the objectives of urban infrastructure privatization are discussed. On the basis of directing principle of goal theory,"ideal objectives"systems, differentiated from"actual objectives", was established, which contains radical objective, intermediate objectives, and concrete objectives. According to the current conditions,"capital objectives"should not be over emphasized, while performance objectives should be concerned.On the research of Chinese urban infrastructure privatization organizing system, current problems are identified as insufficient legislation, inappropriate institution design, defective work flow, and lack of relative mechanism and measures. In order to organized the practice of urban infrastructure privatization, appropriate structure, mechanism of measures should be built up. Appropriate structure includes specific privation management institute, independent regulation institution, and coordination institution. Collaborations between governments agencies with private sectors should continued along the whole process. Necessary mechanisms need for effective organizing includes interest coordinating mechanism, risk sharing mechanism, information disclosure mechanism, and inspecting and feedback mechanism. Facilitating measures includes completing legislation system, transferring government function, establishing credit system, and build privatization atmosphere.On the research of Chinese urban infrastructure privatization operating system, current problems include limited operating model types, ambiguous operating boundary, and insufficient supporting systems. Then studies are furthered in these 3perspectives. For operating model study, all types are summarized and compared, and the problem of model selection is also discussed. For operating boundary study, the features of infrastructure product and industry are analyzed, which has changed a lot from past. Then factors affecting operating boundary are identified as exclusiveness and competitiveness of the product, externality, competitiveness (Scale economy, sunk cost), profitableness, and public responsibilities. While factors like technology, need, and political affair can change the boundary. Supporting systems include competitive system and regulation system. In order to establish competitive system, natural monopoly business and competitive business should be divided, market structure should be redesigned, competitive subjects should be cultivated, and some competitive reinforcement measures should be taken. Complete regulation system should include regulations on network access and coordination, market entering, price, quality, and equity.On the research of Chinese urban infrastructure privatization controlling system, current problems are first discussed. The control ling content is incomplete, the controlling subjects are limited, and effective information transferring system should be established. According to this, the controlling framework is first built up, in which controlling flow, controlling content and controlling prerequisites are discussed. Process control is discussed from macro and micro level respectively, including content and method design. As important part of outcome control, result appraisal is discussed. According to the objective system established on planning phase, 5 classes of appraisal indexes are proposed: amount index, efficiency index, price index, quality index, and equity index. Dummy variable regression analysis is used to evaluate the outcome. An example that evaluates the outcomes privatization policy brings to water industry amount is presented.At last, established urban infrastructure privatization management system is used to analyze the practice of Changchun city. Problems and suggestions are presented in orders of planning, organizing, operating and controlling.