On Governmental Responsibilities During Privatization And Synergy Regulation

Privatization is that the product production and the service more depend upon the market and the governmental function is reduced, which is a rebound to the governmental over expansion and excessive intervention to the market, has manifested the return of the market value. Privatization has broken the traditional balance between the public domain and the private domain, and causes the public domain rapidly to transform to the private domain. The market plays a more and more vital role, and the scope of governmental function is reducing day by day. But the inherent flaws of privatization and the problems which appear during privatization indicate that the scope of governmental function being reducing day by day requests the government to play an important role ,and finally urges the government to be limited and promising. The successful and unsuccessful privatization reforms emphasize that the government during privatization should act suitable roles and undertake the responsibilities corresponding with these roles. However, there is no such standard theories that what responsibilities the government should undertake and how to undertake so far. Lack of such standard theories is one of the main reasons why privatization is often criticized during the display of huge function and influence. The research about this aspect is very important to the reforming countries whose market system is very imperfect, because these countries request governments to play a more powerful role. The research methods of induction and deduction has been mainly used in this article which had comprehensively analysed the inherent flaws of privatization as well as the problems which appears in the privatization, and discuss systematically the government role and corresponding responsibilities. Taking this as the foundation, this article tries to form a mode of synergy regulation to enrich privatization theory.The text is divided into four parts. The first part mainly introduces the basis of the privatization theory, the privatization goals as well as the reform core of privatization. The basis of the privatization theory indicates that privatization emphasizes the market value although, it certainly has not denied the governmental functions. Privatization only changes the ways the government undertakes the responsibilities, and the government and the private sector should establish one kind of partnership. The privatization standard goal lies in the improvement of the efficiency of production and service, promoting the public interest, but in the reality varied privatization goals actually are attached to private interest. And this means that we must establish a more widespread frame of regulation.The second part mainly elaborates the privatization achievement as well as the inherent flaws of privatization and the problems appearing in privatization. The successful privatization effectively eliminates the low efficiency, reduces the waste, improves the national financial condition, optimizes the industrial structure and causes the production and the service to satisfy the public demand well. However, privatization also can produce the behavior of "casts aside the fat", weaken the grass-root democracy, cause serious corruption and unemployment, and this precisely needs the government to play an important role.The third part carries on the comprehensive elaboration to the governmental role and responsibilities during privatization. We should not take the government failure as the reason to completely give up governmental intervention. we should effectively balance the government and the market, and the privatization can be considered as the new balance between the government and the market in the new historical condition. The government has the responsibility to avoid unreasoning privatization, choose eligible private enterprises and the privatization way. The government must cultivate a strong private sector, take measures to guarantee and to prompt them to participate in the privatization, guarantee privatization to bring in positive results, make up its flaws, eliminate its native effect.The fourth part intensively elaborates synergy regulation which is suitable to privatization. Privatization whose core is efficiency creates preconditions for fair and transparent regulation, and requests the regulation based on the efficiency to change into the regulation based on the public responsibilities. At the same time, it is very difficult to restrict"the economic rationality"of the enterprises and the government when there is only the government to be the regulator, and this often results in regulation failure. However, the synergy regulation that emphasizes the concerned people's participation and their mutual restriction may effectively solve this problem. Based on the benefit restriction and equilibrium and the power relative balance, the synergy regulation can control the regulator omni-directionally and continually, and provides possibility for the fast response and effective realization of public benefit consequently.