Applications And Risk Prevention Of The Means Of Privatization In The Reformation Of Municipal Public Utilities

Along with the reform of city's public utilities, means of privatization are wildly applied in all fields of public utilities. The introduction of means of privatization is good for transforming government functions, alleviating financial pressure on the government, expanding the financial channels for the construction of infrastructure, and improving the quality of public services. However, because of the characteristics of city's public utilities, such as natural monopolies of public utilities, public welfare, and inflexible of the price mechanism, it is difficult to use the means of privatization. This paper begins with the concept of the means of privatization. It analyzes the current situation, risk and countermeasures of using these means of privatization. It uses the public choice theory, public goods theory, the proxy-agent theory and the transaction cost theory as the theoretical foundation, against the background of the reform of city's public utilities internal and overseas.Six chapters compose this paper. The first chapter defines the concept and characteristics of city's public utilities, the privatization of city's public utilities, and the means of privatization. The second chapter analyzes the theory about means of privatization, which used in the reform of city's public utilities. The third chapter firstly introduces the reform of the privatization of city's public utilities at home and abroad. Secondly it describes the current situation and performance of means of privatization, which used in the reform of city's public utilities. The fourth chapter mainly analyzes the economical risk, social risk, and political risk during the use of means of privatization. The fifth chapter is the macroscopic analysis of those risks prevention, such as to perfect concerning legal system, mechanism of supervision and universal service system. The sixth chapter is the last chapter. It mainly discusses the micro-level of the use of the means of privatization. It takes three means of privatization (Contract, Franchise and User fees) as examples to analyze the scope, mechanism and specific countermeasures.In the end, this article describes the framework and reviews the main pionts and conclusion.