Research On The Private Pattern Of Chinese Public Services

Under the planned economic system of our country at the early period,public utilities serve as a tool for the country to control economicresources. Therefore, public utilities take a much higher percentage thanfolk private enterprises. There is no doubt that public utilities have madegreat contribution to China’s economy in the past. However, theaccumulated shortcomings of public utilities merge in recent years underthe drastic market competition. Compared with folk enterprises, theirhighlights and existence necessity become decreasing. Public utilities arepositioned at an inferior position in the market. In this case, theprivatization must be taken into consideration to adapt to the challengesof the environment.Custer and Rosensweig (Kast, and Rosenzweig,1985) proposed asystem approach from the aspects of information input for governmentpolicies, management awareness, and decision-making affecting theoutput. This paper makes some modifications on the proposed structureand adopts the modified structure as the basis for the study. With respect to policy impacts, this research focuses on globalization trend,pragmatism, policy theory influence, and national policy direction. Theformer two are grouped into the general social environment scope foranalysis and the latter national policy direction is regarded as a specialtask environment for study.This research, by using public utilities as the basis for policy systems,describes the privatization process of public utilities based on thegovernment failure theory and policy failure theory, analyzes the causesof privatization of domestic and international public utilities, and studiesthe forming and development of policies. This paper attaches importanceto the privatization policy forming and development of Chinese publicutilities, as well as problems occurring in the privatization. Moreover,with the guidance of such research methods as literature analysis andin-depth interview, this paper provides a case of Shenzhen Telecom forthe study in terms of the forming, development, and policy state of itsprivatization, summarizes the problems caused by the privatization ofShenzhen Telecom, and proposes a problem-specific solution, involvingenhancing government capabilities, perfecting market matureness, anddeveloping third departments. The conclusion of the research is obtainedfrom four perspectives, namely, the balance between efficiency andfairness, the positive sum game with private economies, the soundinteraction with governance, and the feasibility. Finally, the paper provides a suggestion to enhance government capabilities by selecting aproper privatization mode, improve market development by means ofvarious patterns, and facilitate the development of third departments.