Hunan Province Changde City Public Utilities Privatization Problem Research

The Prevarication of Public utility is a tidal current all over the world. Alongwith the development of science and technology and expansion of Social arrangement,natural monopolization is weakened, at the same time, new competitive fields iscreated. For the sake of effectively collocating public resources and capabilities, theprivate enterprises are allowed to enter the fields of public utility in some countries.In our country, the privatization of public utilities sprouts from the first theutilities own development, the contradiction between supply and demand. After thereform and opening up, the social production and economic activity has been the rapiddevelopment of the huge demand, while the original monopoly operated by the publicsector facilities can not meet the rapid expansion of the market demand, so that theprivate capital in the field of public utilities have to survive space conditions. Thetraditional theory and the traditional concept of the utilities tend to invest in large,long life cycle, is a money-losing proposition, inability to engage in private, and donot want to operate, and can only be handed down by the government and operated bypublic enterprises. The fact utilities, although the profit margin is not high, generallyaverage profits, but the broad market, stable profitability, business risk is relativelysmall. With the deepening of reform, the implementation of the strategicreorganization of state-owned economy and exit, and the Privatization of PublicUtilities has been the general trend.In this paper, the theoretical overview and empirical analysis closely integratedsummary of attempts from both theoretical and practical aspects of the reform of theexisting utilities privatization.This paper is divided into six major topics of the background, significance,domestic and foreign academic research status, first introduced in Chapter1Introduction part, to explore major issues and research methods. Chapter2Theoretical analysis of the relevant concepts defined and elaborate description of theunderlying theory and the guiding ideology. Changde City Chapter3introduces thesituation of Changde City utilities privatization reform, especially the effectiveness ofthe reform, the existing problems and reasons. Chapter4describes the Westernpractice of reform and four-practice mode. Chapter5of our utilities privatizationreform put forward five suggestions to successfully promote involve thinking and understanding of legal policy, the transformation of government functions, theregulatory system, and market system. In conclusion, our practice of privatizationreforms a summary and need to think further study.