Research For Privatization Of Net Public Utilities

Because public utilities contacts with people's ordinary life closely and it is of nature monopoly, it is operated by government in our country. Because of malpractice of system, public enterprises have been on the loss, and they are lack of money, independence and initiative, and also lack of sense of service. So, net public utilities' needs the system of competition to change.With economy's development, natural monopoly of net public utilities is being weaken, for example, because of increase of society's need to net public utilities, the market scale is expending, so the product is possibly done above the average cost. One enterprise can no longer products them all. For example, with the advent of the ways of finance creation, the capital obstruct of private enterprise' enter is reduced. Because the need of the public utilities is steady, the profit is steady. And the profit absorbs the private's capital. All these make it possible that private capital can operate the net public utilities. The privatization of net public utilities is very meaning to the system reform of market economy and it's the trait of market economy. The reform of our country must break out monopoly. At the condition of our country's entering WTO, the laws of our country must adapt to the international rules, the protection to our enterprises will be limited. So our net public utilities face the competition of foreign company. In the result, we have to do privatization to enhance our market competition. In addition, the privatization of net public utilities can help us balance public finance. So we must take advantage of Capital Market, Franchise Bidding, BOT, PPP and so on to privatization of net public utilities.Because the products of net public utilities is people's ordinary life's need, and the portion of its net is of monopoly, in order to protect the benefit of consumers, we...