Research On Public Corporations

One important indication of the development of modern democratic society ruled by law is that public affairs have increased dramatically. Therefore, it is necessary to standardize the system of administrative subject so as to ensure decentralization, democracy and rule of law. Public corporations system, a form of decentralization which is based on public affairs, has been widely existing in countries with high degree of democracy and rule of law. Currently, with the gradual establishment of market economic system in China and the society's increased demand for public services, government-sponsored institutions, which were formed in the period of planned economy, can no longer meet the requirement of the new era. To successfully construct a service-oriented government and harmonious society, it is essential to reform government-sponsored institutions. Since government-sponsored institutions in China share lots of similarities with public corporations in western countries in nature, objective, function etc, the research on public corporations can provide government-sponsored institutions with valuable theoretical and practical reference. The paper first elaborated general principles of public corporations in western countries; it then made comparison between public corporations and government-sponsored institutions; based on this, the paper reclassified government-sponsored institutions, that was, reverting administrative government-sponsored institutions to administrative organs, assorting profit-making government-sponsored institutions to enterprises, thus establishing the administrative subject status of public interest institutions; finally, the paper shed light on the conception of reforming public interest institutions according to general principles of public corporations.