Research On The Problems And Countermeasures Of Maketization Reform In China Urban Water Industry

As one of the most important infrastructures in the city, urban water industry plays a key role in promoting economic and social development. With the fast development of the urbanization, urban population will grow rapidly, which would bring great pressure on the development of urban water industry.As a typical natural monopoly industry, urban water industry has long been operated by government. As a result, a series of problems happened, such as the heavy economic losses, the lack of efficiency and the waste of water resources, which have become the main factors in hindering the city’s economic and social development. With the market economy system established in China and the demonstration effect of public utilities reform in Western developed countries, the water market is facing tremendous pressure. Therefore, carrying out marketization reform on urban water industry in China is urgent.Marketization reform of the urban water industry that began in the1980s has broken the monopoly, and is bringing into the competition mechanism, attracting the foreign investment and private capital.The reform even set off a wave around2002. Mercerization reform solved the problems of shortage of funds and low operational efficiency which we have been facing. However, misunderstand the goal of markrtization. Lack of experience and lack the legislation in the process of marketization reform. The marketization reform of urban water industry met a series of problems, such as contempt of the public interest, and the confusion of the government on positioning itself, the over-reliance on foreign capital and so on.With the characteristics of the urban water industry and its products and services, this dissertation analyzes the motives of marketization reform of Chinese urban water industry, reviews the course of the reform and builds the overall context of the urban water reform. First, through analyzing the problems faced by the marketization reform, this study tries to show the current status of our current water market. Next, by introducing and contracting the reforms in the Western developed countries, for example U.K and France. This study tries to explore countermeasures that can be taken from a practical point by the urban water market in the next stage of the reform, such as to clear the objectives and the position of the government during marketization reform, to conduct the macro-institutional environment, which can protect the reform orderly and gradually, to realize the public participation right completely, thereby finally to provide some theoretical guidance and practical consult for the next stage of urban water marketization reform in China.This study divides the comprehensive marketization reform into two stages, and summarizes the new problems and tendencies in the previous stage. At the same time, this study tries to put forward some proposals for the new round of reform. In general, it is practical and innovative of this study.