The Governmental Regulation Failure And Reconstruction During The Privatization Of Public Utility In China

As the result of applying the theory of privatization to practice, the privatization of public utility has reformed the system that only the government holds the responsibility for supplying public service, permitting Non-Governmental Organizations to take part in the public service to satisfy people efficiently. The key issue of the privatization of public utility is the introducing of competition and the rational direction.With the expansion of the privatization of public utility in China, the governmental regulation system has been innovated a lot. However, influenced by the past planning system, current regulation failed to meet the high demand of privatization in short time. The failure of governmental regulation such as the invalidation of policy, the mistake in regulation has impeded the development of the privatization. All of these result from the dependence of the regulation organazaiton, the lack of supervision for supervisor and the dissymmetry of regulation information. It is urgent to reconstruct the current regulation system in accordance with the request of the privatization of public utility so as to ensure the development of privatization. The essay consists of four chapters:The first chapter defines the concept of the privatization of public utility, introduces the background of privatization from the point of view of realism and theory, analyses the requirement of the privatization of public utility for governmental regulation in respect to the trait of public utility and the limitation of privatization.The second chapter begins with the origin of the governmental regulation. Then, the essay analyses the failure of governmental regulation and its blight.The third chapter concentrates on the failure of governmental regulation in China, and divides the failure of governmental regulation into 3 types, including the failure of economic regulation, the failure of social regulation and government inner failure. On the basis of the division, the essay discusses the reasons of the failure and studies the case of the regulation of the industry of electric power in china.The fourth chapter response to the problems mentioned in above chapters by putting forward the concept of effective regulation and its four principles, and suggests rebuilding the regulation system in China in conformity to the four principles.