The Reform Of British And French Public-Owned Enterprises And Its Enlightenment To China

Originally the state-owned enterprises in the world all undertake the economic and social dual goal, inevitably loss their efficiency and effectiveness, or even to bring a heavy financial burden. The rapid development of state-owned enterprises benefited from the rise of Keynes'economic theory. After World War II, Keynes'economic theories met the urgent need of the economic recovery and development and the healing of war wounds. The developed capitalist countries in the West (such as Britain and France) have started large-scale nationalization and made a good effectiveness, while Keynes'economic theory is steadily improving, and brought more than 20 years of prosperity to the western developed capitalist countries.As the developed capitalist countries have pursued Keynes economic policies over a long period of time and the high tide of technological revolution disappeared, it led "stagflation" in the 1970's. Keynes'economc theory was declared bankruptcy, then the neo-liberalism rose and developed. Neo-liberalism streeses free market system and reducing government intervention. British taking the lead in carrying out a series of liberal economic reform policies that aimed at reviving the economy. One of these is the reform of privatization of the state-owned enterprises in a wide range and achieved remarkable success. In its demonstration effect, the privatization quickly spread to France,then spread throughout the western developed capitalist countries. The main objectives of the reform of British and French state-owned enterprises is to improve the operational effectiveness and efficiency of state-owned enterprises, to reduce the government's financial burden, to make state-owned enterprises to participate in market competition and risk-resisting ability, to focus on improving the quality of the national economy. Along with the further development of economic reform, based on the neo-liberal macro-economic policies has not been great. Therefore, after being constantly adjusted, the western developed capitalist countries has begun to enter the mixed economy times which is the combination of the free market economy and appropriate government intervention in the economy. During this time,the privatization of state-owned enterprises have emerged in a corresponding adjustment and reform continued to deepen. The reform of British and french state-owned enterprises is to carry out a shareholding system reform as the main contents of the privatization. In order to promote economic growth and improve the international competitiveness of products, British and french state-owned enterprises step up industrial restructuring and vigorously promote the development of high-tech industries. In the process of the reform of state-owned enterprises,British and French governments play a significant role and have a proper regulation for the supervision to the state-owned enterprises. Undoubtedly, the reform of British and French state-owned enterprises was successful, basically realized the goal of the reform and has achieved remarkable success. (1) clear property rights, improve the operating efficiency of enterprises. (2) the introduction of the competition mechanism. (3) to reduce the financial burden. (4) to promote the optimization and upgrading of industrial structure.Through the study of the reform of British and French state-owned enterprises, we shall to explore some practical experience and the lessons of failure and provide advice and information for China's reform of state-owned enterprises.Through the study of the reform of British and French state-owned enterprises,we found something in common in the process of the reform and there's much in their method that we can make use of. First, the reform of state-owned enterprises in accordance with all laws must adhere to a fair, just and open manner. We must remove the provisions of the old law that block the reform of state-owned enterprises and make new laws and regulations. Second, through the reform of state-owned enterprises, we must realize the complete separation of the government and enterprises and establish a sound corporate governance structure. Thirdly, the reform of state-owned enterprises should be the privatization based on the shareholding system reform as the main content and the economic structure adjustment. Through the reform to achieve optimization of the economic structure, the purpose of enhancing national competitiveness. Fourth, we must establish a sound market economic system and ensure an equal competition environment for enterprises. Fifth, the process of the reform should continue to improve its social security system and so on, so as to avoid the social unrest and intensify social contradictions. The reform of British and French state-owned enterprises is not completely abandoned state-owned enterprises, state-owned enterprises in the public domain, technological innovations, national security and other fields are also to provide services and maintain the country's competitive economic advantage.Of course, in the process of the reform of British and French state-owned enterprises, there are still some problems. First, the sale of shares in state-owned enterprises will underestimate the value of enterprises, resulting in the loss of state assets. Secondly, the privatization of state enterprises resulted in a large number of unemployed, intensifying social conflicts. Third, the loss of part of the social welfare in the process of the privatization. Fourthly, the privatization could lead to the formation of new monopolies. China's reform of state-owned enterprises should be to learn these lessons.At present, China's reform of state-owned enterprises is very important juncture, a collapse of the state-owned economy due to privatization has happened. The result is large-scale bankruptcy of state-owned enterprises, causing massive unemployment problem. In this background, in this paper we analyze the reasons, objectives, methodand ,performance of the reform of British and French state-owned enterprises and make a number of constructive proposals for China's reform of state-owned enterprises. We hope to present an important reference value for the reform of China's state-owned enterprises.