The Research On The Government-granted Monopoly In Our State-owned Enterprises

When it comes to the economy in capitalist system,A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity.The monopoly is changing all the time.At the beginning of20th century,monopoly exists mainly in the coal industry,iron and steel industry and petroleum industry,till now,the range has expanded to the light industry,transportation industry and many other service-oriented industries.The scale of those monopoly enterprises are expanded,too.They control a series of key industry departments.After the world war2,the form of monopoly organization has been diversified,more and more huge monopoly enterprises have turned into mix-joint enterprises.which directly expanded its range of control and affection.what’s more.strengthen its dominant position in society.The development of monopoly not only help the capitalism to be socialization,but also deepen the parodox of its society,thus to offer huge power and material conditions for the transition period.From the perspective of market entering,the monopoly can be classified to three kinds.that is,The natural monopoly,the market monopoly and the government-granted monopoly.The natural monopoly depends on the low costs,which can lead to economical efficiency of scale.While the market monopoly is basis on the competition,it is favored by society.A government-granted monopoly or legal monopoly, by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group. Public franchise is a representative kind of government-granted monopolies. The government may also reserve the venture for itself, thus forming a government monopoly.in China,the government-granted monopoly appears to be the main kind of monopoly,which coexist with the natural monopoly to restrain our economy.The government-granted monopoly is always divorced from market,which takes advantage of the government forces to garantee its needs,it can leads to a series of problems including the industry monopoly,the price-fixing,the imbalance of income distribution,as well as the corruption problems.all the problems we refer to would affect not only our state-owned enterprises,but also the sustainable development of our economy.The comprehensive economic development level is decided by the improvement of the state-owned enterprises.that is why the government is always holding the dominant right of those key industries,such us the national defense,the hydropower industry,the transportation industry,the communication industry and so on.The researchs on the government-granted monopoly in state-owned enterprises may offer a large amount of beneficial suggestions for our reform.There are5parts in this thesis,in the part one,we introduce the purpose and significance of writing this paper. While in the second part,we discuss the conception,characteristics and the category of government-granted monopoly.At he end of this part,we analysis the relationship between market economy and government-granted monopoly. In the third part,we list the main problem of our government-granted monopoly in stated-owed enterprises and discuss the causes of government-granted monopoly. In the fourth part,we review the past reform of Russia.At the last part of this thesis,we throw out several suggestions from the perspective of public finance.