The Research Of Government Supervision To Natural Monopoly Of Industries

Natural monopoly industries are the industries where the increasing returns to scale. They have a huge fixed cost big enough to make long run average cost decline. In areas where natural monopolies come up, by only one enterprise can fully satisfy all needs of the market with regard to the products. Therefore, once an industry is defined as a natural monopoly, free competition is considered to be inappropriate, and the Government’s public power must be involved.In the process of establishing and perfecting the Socialist market economy in China, natural monopoly industries have aroused widespread concern in the community, becoming the focus of China’s reform between political and economic systems. Within the longitudinal direction, the administrative monopoly has a significant impact in the industries which mean a lot to the people’s livelihood, was called the administrative monopoly of industries. On the one hand, for natural monopoly industry in the state, the state takes the form of a state-monopoly for their development and management. On the other hand, under the influence of the planned economy system in the long term, this management system is increasingly showing its unscientific side. The current fact is either rigidity or disorder. At a long time, our government management method to these industries is "patriarchal" and the biggest problem is combination between government and the industries. Government is the policies maker of both controlling and overseeing the implementation and actual operator of the respective business. The government’s participation in the micro-economic activities is not only wide but also deep. This is one of the causes of low efficiency of China’s monopoly industries. Meanwhile the price formation mechanism is not reasonable and artificially raising up the price and pushing cost eventually led to the monopoly of the industry’s enterprises’difficulty in and out of the normal course of operations and competition.From the writer’s point of view, the consequences of the high level of administrative intervention from the governments and all level administrative departments to water, gas, electricity, telecommunications, banking, securities, oil, petrochemical, transportation, tobacco, steel and other industries are not only low efficiency, poor service, less competition, but also limiting the development and application of new technologies. Thus, the weakness of the natural monopoly of industries can’t be solved only by the market which is famous by the "invisible hand" but by the state and the government’s reform and governance in the management methods and system.This article mainly includes5parts as follows:Part1, the literature review of social science research methods, both at home and abroad on the natural monopoly, industry definitions interpretation and description of administrative monopoly; Part2, using summarized and quantitative research methods to find the summary information (including data), and the comparative analysis of typical natural,monopolies (telecommunications industry) governance policies of the government to point out the shortcomings of existing government policies and strategies; Part3,analysis of history of government regulation of natural monopoly industries in China. In this section, I divided to several key transition years to four stages of government regulation, regulation of Government-by-stage listing and analysis of policies and measures, and finally summed up the above stage government regulatory shortcomings. Part4, through examples and the comparative studying of the analysis of developed countries, this article makes the significance of government administrative monopoly in China. Part5, to use of the systematic and comprehensive view, the paper puts forward the recommendations on specific reform and governance measures.In this paper, the biggest innovation point is to analyze the natural monopoly industries from the aspect of government supervision, not simply talking on the monopoly but on government administrative monopoly of natural monopoly industry in China to study this complex interweaving. In addition, in expounding natural monopoly characteristics, mathematical and statistical analysis methods are also innovations and highlights. Zhang Peipei (Public Adminsitration) Supervised by Huang Junfu...