Analysis Of China's Urban Water Reform And Ideas

City water utility is so important that it is called "the blood of a city". But China's city water utility has been underdeveloped so that it becomes the "bottleneck" of China's economy. For a long time, some innovations have been carried out in the field of water utility by some local governments, but the result is hardly satisfactory. We can't tell the pure public goods from the quasi-public goods so that we regard water utility as the pure public goods . Based on this misunderstanding, the water utility is thought to be run fully by the government to ensure the realization of its public welfare. So a fully state-owned water utility system has been established under the guidance of this theory.From the facts, we can draw the conclusion: the traditional system of water utility is inefficient, therefore any reform without changes on the whole system can hardly solve the "bottleneck" problem. To achieve effective reform, we must replace the traditional system with the market system under strict regulation.Open-mindness , reform and innovation are the guidance of this thesis. it is illustrated from three aspects : the re-recognization of the government's role in the water utility; innovation on the regulation system and on the investment and finance system.Under the guidance of the public goods and natural monopoly theory, the thesis focuses on the overall system of water utility by both the positive and normal analysis. The thesis does not focus on a specific part of water utility or that in a specific city, but on the overall water utility.This thesis has three chapters as follows: the great significance of China's reform on its water utility, the current situation of China's water utility, the orientation and measure of China's water utility.Chapter one demonstrates the great significance from four perspectives. First, the reform is the embodiment of the thought " all for people " because it determines the improvement of people's living standards directly. Second, the current water utility hinders the sustainable development of China's economy, so it must be reformed. China is advancing into a new stage charaterized by industrialization and urbanization, which is heavily hold back by water utility, so the situation must be changed. The water enterprises are highly scattered in the nation and highly monopoly in a certain city, so reform is the only way to enhance the competitiveness of China's water enterprises.Chapter Two analyzes the current situation of China's water utility . Above all, the thesis demonstrates China's water utility is in a transitional system shown from three respects as the following: first the policies, which forbids private capital's participation in water utility, are being abolished. Second the state-owned enterprises are the leading role in the water market with the little participation of private and foreign capital. Third the demand of water infrastructures is so strong that the government can hardly afford by itself. Then, the thesis points out the problems in the law , regulation ,property rights and investment and finance system. Firstly, a lot of business behaviors can't be supervised as a result of lack of the market-based legal system; Secondly, the traditional regulation system performs unsatisfactorily meanwhile the market-based regulation system has not been established yet .Due to its irrational property structure, the state-owned enterprises are generally accused of poor management ,poor service and heavy loss. There is a wide gap between the demand and the supply of water utility because there isn't proper link between abundant private capital and the main investors such as the government. Chapter Three is the core of this thesis , which puts emphasis on the orientation and specific measures of the reform. Firstly, with the public goods and natural monopoly theory, the products and services of the water utility are defined to the quasi-public goods. So it can be supplied by both the market and th...