The Study On The Solutions To The Problems Of Transferring The Enterprises Ensured By The Army To Local Governments

To carry out the instruction of socialization of the logistics ensuring system of the PLA by Jiang Ze-ming, the general office of CCCPC (Central Committee of the Communist Party of China), the general office of the State Council and the Military Commission of CCCPC have made "Suggestions on Transfer work of Enterprises Ensured by the Army" on September 13, 2000. The transfer work Starts from September, 2001 and ends in September, 2002. From then on, the enterprises ensured by the army will be managed by the local governments.The transfer action is to meet the demand of perfecting market economy system, the modernization of the army, the development of the enterprises ensured by the army andstraightening out the management system. It is the inevitable result of history and logic. The number of enterprises transferred to local government is 297, with 209 thousand employees and 88 thousand retiring workers. The total assets are 24. 25 billion Yuan and 1.464 million mu at the end of 1999.After the transfer, the enterprises cannot adapt to the changes in a long time, which reflects in the following aspects: the size of the enterprises is relatively small, with weak competitive power; the structure of products is single and it is hard to develop new products, the enterprises cover a narrow market and have weak power to widen it; the enterprises have rigid systems and mechanisms; the enterprises get big deficit and loweconomic efficiency; the management departments divert quickly leading to lots of contradictions; the ideas of management lag behind time. All those real problems are factors which affect the exist and development of the enterprises directly, which affects the lives and work of the 300 thousand workers and the nation's unity and Stability.The cause to the problems can be judged from objective and subjective sides. The objective causes include: the transfer from plan economy to market economy; downsize the army and transfer to local management. The Subject causes include: idea, mechanisms, system and facility factors. The enterprises have to adapt themselves to the objective environment because it is hard to be changed. For the subjective factors, the enterprises must investigate them and find out solutions.The solutions to the problems can be concluded as: considering market as the leading factor, development and reform as two wings, transferring mechanisms as the energy, integrating operating strength, gaining advantages and creating another splendid situation. The specific measures can be taken as below: enlarging market and occupying civil market; deepening reform and establishing modern enterprises system; Sticking to development and making it better; Straightening out relations and perfecting mechanisms; improving technology and enforcing management; renewing ideas and improving knowledge. The enterprises ensured by the army must keep on reforming and innovating, researching new problems and making scientific decision timely. Thus they can achieve smooth transfer process and sustainable development and split the way to a splendid situation.