On Private Capital Investment In Urban Infrastructure

Urban infrastructure is the physical carrier for cities' existence and development, the premise for normal operation of economic and social activities and one of the most important factors to perfect the urban modernization. The increasingly fast urbanization process requires more and more infrastructures.Urban infrastructure has the characteristics of public goods or quasi-public goods. Because of its huge construction scale, long construction period and even the few profit in the short term, government has always been playing the dominant role in this scope. As our economic foundation is weak and the infrastructure is backward, we should invest large-scaly to construct or reconstruct the urban infrastructure, which surely needs powerful capital as the guarantee. But now we are in the primary socialism phase with weak economic power and finance, so we cannot afford to construct the high-standard infrastructure to meet the requirement of modernization. At the same time, thousands of millions of nongovernmental capital has no way to go, and is prohibited from urban infrastructure, which causes the flowing capital not be effectively deployed and resources be wasted. Nongovernmental capital is a part of social capital and should have the same treatment with government capital and should be given the qualification to participate in the infrastructure construction and operation. In that case, all the social recourses can be effectively utilized. Practice shows that to draw nongovernmental capital to the infrastructure is feasible as well as necessary which conforms to the requirement and trend of social development. So we should give the nongovernmental capital the national treatment and draw it to the urban infrastructure scope.This thesis composes of two parts: preface and text. The preface presents the research background and significance which serves as the preparation for the following text.There are 5 chapters in the text:Chapter 1 introduces the concepts of infrastructure and urban infrastructure, its characteristics of public goods and natural monopoly, the effective supply mode of urban infrastructure with pure-public and quasi-public characteristic, which is the theory foundation for the following chapters.