The Study Of Policy Tools Of Promoting Zhejiang Private Capital’s Participation In Municipal Public Utilities Supply

The Zhejiang province plays a leading role in China in terms of the development of the private economy, and the local private capital exerts an ever-increasing influence on the national economic and social development. To ensure that it only works in the good way and facilitate the sustainable growth of the economy, the government has to make proper guidance and supervision. China has formulated a number of policies aimed at encouraging and guiding the development of the non-public sector since2002. However, they have not worked all so well, due to lax implementation as well as the lack of conformity, and speculation prevails, in real estate, garlic, beans, to name just a few. Therefore, studies on the role of private capital in public welfare have to be made, for example, from the perspective of how policies affect private capital’s involvement in urban public facility constructions. Such studies shall also fundamentally improve the design of policy tools in public-private cooperation in these areas, and yield great significance the healthy development of private capital.Policy tools are means, technologies or channels taken by the government to attain certain goals, which can be divided into three types with respect to mandatory tools, incentive tools and voluntary tools. When promoting market-driven public utilities and bringing private capitals into the management of public utilities. China has experienced three stages of transformation and development, which are from mandatory tools to the introduction of incentive tools and then to the mixed use of the three kinds of policy tools. Zhejiang, as a province with a rapid development of economy, has also experienced two stages at which mandatory tools give priority to the mixed use of three kinds of tools. Nowadays, a reform of marketing orientation in public utilities has made satisfactory achievements in Zhejiang province. Otherwise there are still many problems in policy tools when the government of Zhejiang province where largest capitals are run by non-governmental enterprises, directs non-governmental capitals to public utilities. In fact, problems are mainly focused on lower aggregate investments, strongly profit-pursuing beliefs, a lack of incentive and fair measures in the price system and powerless government behaviors. And the causes are largely distributed in the deficiency and dislocation of laws, legislations and policies, vagueness of government roles, malfunction of supervisions and managements, a failure of "game playing" for the public between non-governmental capitals and government counterparts in China and so forth. Therefore, we ought to reconstruct and rebuild a policy model that facilitates non-governmental capitals to engage in municipal service supply. Besides, newly improving mandatory tools, changing governance capacities and making great use of incentive and voluntary tools are also significant moves for mutual benefits of non-governmental capitals and public utilities when we provide government supports.