With Economies In Transition, The Natural Monopoly Of Government Regulation Reform

Abstract In 1970's, the western governments began to bring competitive forces to natural monopoly industries which results in a global reformation tide of government regulation. Since reforming and opening, Chinese natural monopoly industries'reformation has made some progress, however the issues of government and enterprises'mixture, government monopoly and poor efficiency have not been fundamentally solved. Studying the Western countries'experiences, exploring the regulative system adapted to the economic transition period and improving the regulative ability of the Chinese government have important theory value and urgent practical significance.Because of the economic transition period, the reformation of government regulation in China is not only a deregulation process like the western countries', but a dual process. It is reformation of planned economy as well as reconstruction of new government regulation. On the basis of comparative analysis, the thesis explores the existing problems and the reasons in Chinese natural monopoly industries, and then suggests the concrete measures of reconstructing the government regulative system in China. Accordingly, the contents of this thesis are listed as below:The introduction part has introduced the reasons of study, the references, the written ways, and the fundamental frames as well as the studying methods.The first part introduces the basic theories of regulative reform of western countries. First of all, the thesis gives the definition of government regulation, and explains the defectiveness of government regulation in natural monopoly industries. On the basis of it, the thesis on one hand explores the evolution of natural monopoly theories, from the natural monopoly based on the economies of scale to strong and weak natural monopoly. On the other hand, the thesis discusses the competition theory under a regulative framework, including the theory of franchise of regulation, the theory of yardstick competition and the theory of contestable markets.The second part summarizes the experiences and enlightenment of Western countries. On the basis of the introduction of the reforming conditions in the United States, the United Kingdom and Japan, the thesis sums up the common characteristics of the western countries. Then, it takes telecommunication industry as an example to introduce the reforming progress of Chinese natural monopoly industries. Finally, on the analysis of the commons and differences between China and western countries, the thesis sums up the enlightenment to China.The third part makes further analysis of the problems and reasons in Chinese natural monopoly industries'reformation. The reformation of government regulation system in China has got some achievements, however the absence of effective reforming measures results in the problems such as the excessive administrative monopoly, short of independent regulative organization, short of mechanism of public participating and supervising. Then, the thesis analyzes the reasons of those problems.The forth part is based on property right and competition which suggests the reforming thoughts of Chinese natural monopoly industry. This part begins with the separation of the natural monopoly business, and then divides the reformation of government regulation into four levels: reorganization of the state-owned enterprises, introduction of competitive forces, interconnection and reconstruction of the government regulation system. Meanwhile, because of the particularity of the government regulation, evaluating system of it and risk-evading system should be developed.