Research On The Reform Of Prison Enterprise Management System In China

As the people’s democratic dictatorship tool and penal institution, prison has the functions of punishment and reform. Under the planned economy system, prison and prison enterprise existed as a unit. Prison took the part of social function since in the remote area, there were school, hospital, and even the court and police station in prison. The system which ensured the reform of criminals and rich materials wealth was beneficial. However, after China’s reform and opening-up policy, the loan and even bankruptcy of the enterprise caused by the lack of funds and labor weakened the function of penalty execution of prison. In 2003, the Ministry of Justice implemented the reform of full financial support, prison and enterprise separation, separate payments and standardized operation. As a result, research on reform of enterprise management system is essential.Based on the theory of management science, economics, transformation of government functions, resource allocation, transaction cost, industrial layout and the analysis of reform experimentation, this essay is to demonstrate the necessity of the prison enterprise reform and reconstruction of property relations and corporate governance structure.This thesis studies on reform of enterprise management system. Chapter one illustrates the dual nature of criminals’ labor. Through working, on the one hand, criminals can reinvent themselves; on the other hand, they can create materials wealth. So it was beneficial to planned economy. Chapter two digs out the problem of lack of funds, backward legislation and prison management. Chapter three puts forward the solutions. Firstly, function of reform is prior to economic benefits. Secondly, practical corporate governance structure and mechanism of mutual independence and mutual coordination are necessary. Thirdly, professional personnel of prison enterprise and industrial layout adjustment relying on regional market are essential. Besides, legal system of prison separation and dynamic financial security system are urgent.