Privatization Of Public Services-Some Proposals On The Reform Of The Post & Mail Service Industry In China

In the 1970s, the rise of the public management movement has brought about waves after waves of government reforms. In the public service sector, the role of the government as the service supplier and producer has been frequently questioned. This has given rise to tremendous reforms in the public service sector. In the course of these reforms, privatization has grown into a major trend and has become almost the synonyms for the reform.As one of the public services which are generally or commonly available to the public, the post & mail service industry also faces a lot of challenges from different dimensions. Remarkable achievements were made in the post & mail service industry in China in the past 50 years and the industry started to turn out profits since it was separated from the previous post & tele-communication businesses in 1998. Does the industry itself need further reform? The answer is positive because the shortcomings of the existing post & mail business system are becoming more and more evident today. The quality of the service has deteriorated and the profitability is lower. Especially when China joins the WTO, the post & mail service industry in the country was heavily challenged by the international competition. In order to get itself on the right track in the international market, the industry should first learn to comply with the "rules of the game". This requires a comprehensive restructuring in accordance with the rules of the prevailing market in the country's post & mail service industry. Therefore, reform is the only solutions to the dilemma of the post & mail services in China today. Plans and proposals related to the reform in the post & mail service industry in China have already been made. But whether or not these plans and proposals are reasonable is still under debate today. Some proposed again the "privatization" of the entire industry. In this article, the author is in the view that business mode under which mainly the public departments provide the post & mail services is in conformity with the actual situations in China. For some of the commercial, operational services where there is greater competition, various forms of privatization can be adopted (i.e. out-contracted services by relaxing some of the restrictions). Notably, the proposals and plans presented in this article are not intended for fabricating a best business mode in the post & mail service industry but to give some ideas on how to proceed with the reforms which fit in with the actual situations of this industry in the country.