Privatization Of State-owned Enterprises On The Path And Countermeasures

Privatization of state-owned enterprise developed rapidly in 1980s. Because of its significance to state-owned enterprise reform even the whole national economy, about 100 countries have regarded it as a tool of economic policy. So is China's state-owned enterprise reform. Privatization of state-owned enterprise in china varies from that in other countries for the difference in economic system, ideology and domestic condition. In this paper, we will discuss the samilarity and the difference according to the privatization courses in Britain, korea and east Europe.Privatization of state-owned enterprise includes two aspects. One is that state-owned enterprise is managed by non-state principal part. The other is that state-owned enterprise is bought by non-state principal part. There are two methods to realize the privatization, which contains privatization in management and in property. Privatization in management means that the power of management of the enterprise is given to non-state principal part under the premise that the state holds the ownership. Contract system and Rental system are the two main ways. Privatization in property means that most of the property or the shares of state-owned enterprise are attorned to non-state principal part, such as the individual, other enterprise or foreign business. There are many ways to realize the privatization in property. But we must choose the most appropriate method after analysing the different situation in each area.It is a long and hard way to realize privatization of state-owned enterprise. So we should endeavor to change some ideas, prevent the state-owned assets from losing, develop the social security system, exert the function of the government.