Study On Social Costs Of State-owned Enterprise Reform From The Perspective Of Social Policy

In the past forty years the reform of China state-owned enterprise has released the great vitality of social production,which achieved remarkable economic records and realized the breakthrough creation and accumulation of Chinese national wealth.But with the deepening of market economy reform,the social costs of state-owned enterprises reform also showed cumulative growth from scratch.Not only they showed the loss of wealth and the early depletion of natural resources,like the state-owned assets were lost in the process of shareholding reform in state-owned enterprises and the gap between national income was greatly expanded,but also showed the intangible value damage,such as the survival and development of laid-off workers,and the general adoption of the market principle for social consuming and public service result in the rise in price.The social costs of China state-owned enterprises reform seriously reduced and damaged the welfare of ordinary people,and worsen social justice.Reviewing the development of social costs of China's state-owned enterprises reform,on one hand,we can see that social costs of SOE reform is the inevitable outcome of market economy development,it means that the promotion of economic performance inevitably affects the welfare of the third party or the public,which is the problem of social costs cannot be eradicated.On the other hand,the governance practices of state-owned enterprise reform social costs tell us that in the real social the social costs of the state-owned enterprise reform can be governed by the government to establish a reasonable social policy system.From the origin and development of theory,social costs of China's state-owned enterprise reform is not a new research proposition.From “salary eroding profits” to "state policy burdens",from Prof.Zhang to Lin,because the scholars respect and worship of the "invisible hand" of spontaneous adjustment mechanism and exclude the mechanism of interference from the "visible hand”,social costs of China's state-owned enterprise reform was handled as a problem according to the scarce resource allocation and regarded as a risk factor that impact on the performance of enterprise benefits in the development history of the research.However,the social costs of the reform of Chinese state-owned enterprises has never disappeared.This thesis inherits the social costs researched by Titmuss,and on the basis of which is clearly the state-owned enterprises should be measured in the social system.To focus on the interpretation of the social costs of state-owned enterprises reform,which core view is "the damage made by social costs can only be effectively prevented by social policy",about the causes and solution of social costs in a more comprehensive and profound explanation.Social Policy consider that the social costs is closely related to social policy which social costs is the motive force of social policy generation and development,and only social policy can effectively prevent the damage caused by the social costs of daily living.Therefore,the social costs of state-owned enterprises reform in China can be divided into three stages: in the first stage,the social costs of state-owned enterprises reform gradually incubated between 1978 to 1991;in the second stage,all of social costs in China's state-owned enterprises broke out between1992 to 2002;in the third stage: the social costs of the state-owned enterprises reform in China has gradually stabilized(since 2003).In terms of social change,at the incubation stage of social costs of China's state-owned enterprise reform,the regime is stable,economic and cultural is being liberalized,and social resources began to flow freely.In this social context,the economic policy that giving state-owned enterprises more power and expanding their own management rights has been implemented.These economic policies that separate the management rights and ownership of state-owned enterprises provide a breeding ground for social costs which resulted in the economic and social interests of state-owned enterprises began to diverge.The social policies of the same period didn't come out until the late 1980 s which is compensatory and lagged.This kind of social policy cannot properly handle the second stage state-owned enterprise reform social costs.Although the political and economic development in the second stage is stable,the economic policy of state-owned enterprise reform caused the explosion of social costs of state-owned enterprises.On one hand,there are a lot of irregular operations in the process of property rights change of state-owned small and medium-sized enterprises,it caused a serious loss of state assets.On the other hand,enterprises seek to maximize their own economic profits and avoid their responsibilities.Not just laying off workers at work to reduce their labor costs,and many enterprises although introduced worker,is not for worker pay society insurance premium in accordance with the law.In this case,the economic benefits brought by the reform of state-owned enterprises have become the increase of the polarization between rich and poor in China.China's Gini coefficient climbed above 0.4,and the city has a new social poverty group-laid off workers.At the same time,the rising prices of urban social goods and the lack of public services indirectly consolidate the polarization of income and further harm the interests of the disadvantaged groups.Aiming at social costs of China's state-owned enterprise reform,the government began to take active measures to formulate targeted social policies that expand the coverage of the unemployment insurance system,establish and improve the social insurance system for enterprise employees,and establish a minimum living guarantee system for low-income urban residents.At the same time,the lack of public service and the gap of the social service market actively promote the social service institutions to the market which belong to the state-owned enterprises.The "Social Policy" was first written to the central committee of the communist party of China(CPC)central committee in 2006.After that,social costs of China's state-owned enterprise reform began to stabilize under the regulation of social policy.Reducing excessive capacity of the state-owned enterprises reform is mainly in the coal and steel industry this round,the coal industry alone involves about 1.5 million jobs,it accounts for 26% of the total employment in the existing coal industry.At the beginning of the reform,central government and local governments set up special funds matching policies respectively to manage and control social costs of reform.For example,the central government has distribute 100 billion yuan to settle staff,in the process of reduce excessive capacity of coal and steel industry enterprises through internal diversion mode to settle staff by local government,finally bring about no layoffs or afford steady post subsidy of fewer layoffs,and enterprises who participate in unemployment insurance and pay full unemployment insurance in accordance with the law shall be given steady post subsidy in accordance with the no more than 50% of the total unemployment insurance that the enterprise and its worker actually payed last year.We could say that social policy of this stage is the evolution of the second stage.The government has begun to introduce social policies in advance to prevent and control social costs of China's state-owned enterprise reform.In this thesis,integrating the damage and benefit of labors into the category of inspection and govern of social costs,by analyzed a typical case of the social costs of contractual reform of K company which is affiliated J coal corporate in H Province.This thesis provides solutions and practical cognitive logic to the social policy be aimed at a series of conflict of interest among early retirement employees,front-line employees and young employees with the economic performance of the enterprises.The social costs of China state-owned enterprises not only breaks through the perspective of traditional economics research,but also enriches social policy research,and is a theoretical research with practical significance.In this thesis,the development history of social costs of China state-owned enterprise reform raised again:”the social policy is the only effective measure in preventing the damage of Social costs which is constantly changing.” In order to provide policy suggestions and appropriate solutions for social cost through the analysis of representative case that the social policies can properly govern the social costs of China state-owned enterprise reform in new era.To construct social policy system that should be fully mobilize and bring into full play the forces of all parties from the perspective of the subject,should be integrated different interests of the enterprise(market),government and society in control effect.Only such social policies can safeguard China's economic and social stability.