Research On The Reform Of State-owned Enterprises In The Context Of Globalization

The purpose of this paper on the reform of state-owned enterprises(SOE)is to dispel the doubt of the development prospects of the state-owned system in Neoliberal economics in the era of globalization.The argument that public ownership is necessarily inferior to private ownership is untenable.It is dangerous and unfair to regard the existence and development of state-owned enterprises as the shackles of China's economy.By reviewing the history of the development of state-owned economy in China and comparing with the successful cases of SOEs in other economies all over the world,this paper finds out the theoretical basis and practical path for China to insist on deepening the reform of SOEs and making them stronger and bigger.State-owned enterprises exist not only in European countries with socialist traditions,but also in the privatization-oriented United States.Academic circles often hold that the proportion of state-owned economy in the West is much lower than that in China,but many free market economies,such as Singapore,also have a high proportion of state-owned economy.SOEs exist in wide ranges of industries in these countries' national economy,but why can they achieve economic success? These issues cannot be explained merely by privatization theories.Therefore,it is irresponsible to impute all economic problems to the state-owned system.Looking back through history,many economies failed to achieve economic development through radical privatization by accepting neoliberal economic theory without basing on their own pragmatic conditions.In the 1980 s,Latin American countries,Philippines and other economies fell into a long "middle income trap".And these countries have lost the chance of industrialization.On the contrary,the newly industrialized countries with a higher proportion of state-owned economy(e.g.South Korea)have achieved poverty alleviation and catch-up in the same period.Problems existing in SOEs are not directly related to ownership.Many identical problems are shared between SOEs and private enterprises,especially in large private enterprises with a large number of shareholders.Therefore,simply changing the ownership of enterprises will not solve the problems of SOEs.From the experience of successful SOEs in the West,we can see that by establishing a modern business management system,reducing government intervention,and improving laws and regulations,the problems of SOEs can then be solved or avoided.From the analysis of French state-owned economy,we can see that the French government not only recognize the contribution and status of SOEs without introducing radical privatization,but also maintains the competitiveness of enterprises through effective reform.As a result,the French SOEs increased their ability in acquiring core technology of the country.German SOEs have also played an irreplaceable role in the post-war recovery of the economy and the realization of national industrialization.Interestingly,after several rounds of privatization,Germany began to re-nationalize its power industry recently.The SOEs in Nordic countries are an important part of supporting their high welfare economy,and they are at the forefront of the world in technological innovation.Singapore and South Korea in Asia are more typical cases of using SOEs to achieve economic success and industrialization.Even in the United States,which fully believes in privatization,there are a considerable number of SOEs,spreading from military,financial,real estate industries to public utilities.All these show the rationality and necessity of the existence of SOEs.Although the reform of SOEs is not a new research,most of the current studies only stay at the level of micro-governance of enterprises,and do not directly point out the theoretical basis and source of confidence for strengthening the state-owned economy from the perspective of internal and external linkages of globalization and the law of historical development.Only by jumping out of the framework of the western economic paradigm,can we better find the direction of the development of SOEs in China from the perspective of empirical analysis.In the introduction,this paper elaborates the background and significance of the topic,the research trends,the research methods,the basic framework and innovation points of the paper.The first chapter reviews the reform process of SOEs in China,and objectively summarizes the historical contributions made by SOEs in the process of economic development in China.At the same time,it reviews the reasons and process of the birth and promotion of Western neoliberal economics,and clarifies the impact of this trend on China's economy after gradual integration into the global system.In the end,this chapter explains the relationship between industrialization and modernization in the second section of the first chapter.Chapter 2 firstly summarizes and analyses some theories of questioning the efficiency of SOEs,including "principal-agent","free-rider" and "soft budget constraint".It reveals that the existence of these problems has nothing to do with whether the ownership enterprises.Subsequently,this paper lists many "traps" in the process of privatization.Finally,this chapter points out the essential differences between the reform of mixed ownership and privatization.In the third chapter,through the analysis and comparison of the development history of SOEs in France,Germany,Nordic countries,the United States and other economies,this chapter provides some constructive ideas for the reform of China's SOEs.Chapter 4 mainly analyses the state-owned economic composition and the attempt of privatization reform in Korean,Singapore and other Asian economies,trying to find the reform path that can be adopted by China.The fifth,the sixth and the seventh chapters of this paper study and analyze the challenges and possible measures to deal with the reform of SOEs in today's globalized world.The eighth chapter is the summary of the whole paper and the prospects for the future development of SOEs.