Study On Profitable Institution Reform

There exists a complicated situation for the institutions in China. During the whole process of institution reform, profitable ones are undergoing the most severe and arduous period. Originally institutions were divided into, according to the form of budget, full-support, balance allocation and self-financing and currently into non-profit and profitability, which has taken a long time. But the new division shows that our country gets clearer idea and direction for the reform of institutions. The reform of profitable institutions began in the mid-1980s and many national and local policy documents were issued in the two decades and the central government and local government made helpful explorations in theory and practice, compiled the reform classification standard of management and employment system and property rights system to advance institutions to the enterprise way day by day. The practice of reform is influenced in various ways and some difficulties can't be settled because there is big space between the characteristic of profitable institution and the target of system reform. There are several factors which will increase the difficulty of reform, for example, delaying the reform by some person who have conservative values, unscientific measures will stimulate the potential contradictions, the imbalance of region and trade as well as the lag of time. By the study on these difficulties, this article puts forward that profitable institutions must fully realize their deficiency in market economy system and under the premise of believing the right direction to restructure to enterprise deeply understand such questions as concept and system and survival etc. We can promote the enterprise reform practically and effectively by some useful methods, for example, deepening the reform of the employment and the property system, establishing a modern enterprise system, strengthen the internal management, improving market competitiveness, perfecting a complete set of measures, eliminating the worries of workers. At the same time, the government, responsible for the maintenance of social full peace and development should correctly and really knows the difficulties of profitable intuitions in their transition into enterprise, faces the reality realistically and assists these institutions which restructure to enterprise in relieving their historical burden, allows the steady transition and respects their own decision-making power to help the profitable institutions stepping into the way of market economy and promote their healthy and sustainable development.