Research On Privatization Of Public Goods Supply

Public Goods is special goods, the condition of their quality and efficiency plays a very important role not only in the level of welfare but also the economic harmony. Facing the ineffective condition of supply, the government has come to realize the importance of reform. We should make use of the successful experience of abroad and develop the new policies and measures adapted to our country. We have been trying to develop the privatization in the supply of Public Goods in recent years, this Paper is attempt to come up with measures to make our reform more perfect.In traditional theory, it is believed that all Public Goods should be offered by government due to such characteristics as non-competitiveness and non-exclusive private. Just because of the unavoidable "Free-riding", the market system can not supply the public goods effectively. So the supply of public goods exists "Market Failure" However, the theory can not defeat the fact, though the arrangement of government resolve the "Free-riding", it has resulted in a series of problems called "Government Failure", such as the low efficiency of government providing, non-sufficient supply of government, government rent-seeking and so on.. The Public Option theory promoted the possibility of the privatization of supply, the New Administrated Management Theory came up with the opinion that the government should steer the ship not paddle, that is ,the government should divided the process between supply and product, the arrangement that the goods produced by non-government body and supply by government can be adopted. The theory proved the feasibility of the privatization and indicated the clear rode to follow. The successful practice in west countries in 1970s clearly proved the effectiveness of the privatization reform.It has been a long time that the supply of Public Goods was monopolized by government in our country;the low efficiency and the shortage of finance hold the development of economic. Facing with the citizen's growing demands for public goods, the reform of supply is necessary. The development of private sector and the growing strength made the privatization possible. In recent years the growing demand, the potential ability of supply as well as the support of policies promoted thedevelopment of privatization. However, the privatization is not omnipotent. It has the range to apply;it is unfeasible to carry out privatization across-the-board this period in our country. Confined the applicable range scientifically is the guarantee of the successful reform. With the development of theory and practice, the arrangement of privatization became more and more, how to choose the applicable arrangement for our country instead of a blind imitation of developed country is the object of the study. It is undeniable that there are many problems in the process of reform not only in china but also in developed countries, including fixing prize, supervision as well as legislation etc. How to resolve these problems is falling into the objective of for our study. Based on theatrical analysis, the Paper does empirical study on the practical reform. Finally it discusses the relevant policies and measures of how to make use the market system to perfect the supply of Public Goods in modern China.