Dilemma And Countermeasure To The Privatization Of Public Traffic Industry In China

Since the end of 1970s, many west countries begin to reform their mechanism of producing and supplying public utilities, in order to reply to the public criticism of low governmental efficiency in producing and supplying. The public believe that the better way of producing and supplying public utilities is relying more on private sectors and less governmental sectors. Under this kind of globe influence, china also begin to reform the producing and supplying mechanism of public utilities since the end of 1990s, privatization has become the trend of the reform of public utilities in all countries.To a certain extent, public traffic industry of cities as an important area of public utilities is in the natural of monopolization. At the same time, it is the arteries of the city's economic development as infrastructure of the cities,it is not only to maintain the normal operation of urban functions,but also has an overall impact on socio-economic development. And for a long time, public traffic industry of cities is controlled and operated by government, the mode of operation caused low productivity,poor quality of service and more government financial subsidies. With the development of economic and the elevation of the level of urbanization, the public need more and more bus service, the Government's financial resources have been unable to meet the demand of the general public. So, many cities in china carried out privatization in the area of public traffic industry, the government lead into private capital and break the single supply mode of public traffic in order to improve the efficiency,lighten the financial burden of the government,meet the demand of public. In the early stage of reform, many cities have made good effectiveness: the operational efficiency raised,the company win profitability,Financial pressure of the Government got effective mitigation,social benefits got addition. However, the theory and practice of privatization are derived from the West, it is an innovative system of their administrative reform movement, privatization of public utilities is rising in China, public traffic industry of cities is a Special industry, its privatization is still in the exploratory stage of practice, There is no perfect system and Off-the-shelf experience. With the deepening development of reform, the company can not provide effective bus services, the capacity and quality of service declined, the general public and some scholars began to oppose the privatization of public traffic, they think that the private sector should return public traffic to the State, the reform of privatization stranded.The article is based on the current status of privatization in the public traffic and apply the theory of public goods, According to the theory of public goods and the specific characteristics of public traffic industry of cities, it appertain the scope of quasi-public goods and has obvious competitive and exclusion.Exclusion means that it can effectively avoid"free rider"and make up for the cost of the production process; Competitive means that it can bring about diversified the source of funding and more the operator. Moreover, because the demand elasticity of products is small,the number of passengers is stable, it is expected to get great profit. So, profit can stimulate the private sector and social institutions to operate public traffic industry. The above contents demonstrate theoretically that breaking the traditional mode and using the Market-oriented way are feasible. Development of the private economy and enlargement of progressive reforms are all the reality driving forces of the public traffic industry privatization.The public traffic industry privatization has a theoretical and practical feasibility, the reasons that it is at the plight of the reform in our country are the Government's awareness of the mistakes,company employees'thinking of the obstacles,inadequate competition in the course of business,imperfect monitoring mechanism, according to empirical analysis。Temporary failure can not totally reject the privatization of the direction of reform,Our main task is to find the root of the problem and find effective solutions。After all, the privatization has made eye-catching achievements in the area of public traffic project in foreign countries, especially in Hong Kong.In this paper, I put forward some views and suggestions about how to break away the dilemma: first, the privatization is still the direction of public traffic industry reform, we should not be so anxious in the course of reform, the keys are that update our concept,remove awareness of error,improve the environment and provide legal support for privatization. Second, the key is effective competition, we must break the monopoly and avoid excessive competition. Third, the reform of regulation is indemnification, it asked the government to set up independent regulatory agencies,define their the responsibility,strengthen the quantity and quality of regulation, and the public should supervise the regulatory agencies and the operator in order to avoid the occurrence of corruption.The author hopes that the analysis of the status in public traffic industry can provide some useful value for resolving the supply problems of public traffic services.