Study Of Chinese Private Investment In Urban Public Utilities

Because of the natures and characteristics of the urban utilities, governments of all countries usually take specific ways to invest in it and manage it. In china, it has been the government who has invested in, operated and managed the urban utilities. But due to the limitations of government's financial fund and the inefficiency of governmental investment, the supply of urban utilities has been insufficient which has influenced the improvement of urbanite's living standards and development of the city also. With the fast development of the urbanization and the constant improvement of people's living standards, people have higher and higher demand for the development of urban utilities. In recent years, with the deepening of our economic institutional reform, the growth of the non-governmental capital's scale, the development of science and technology and people's deeper understanding of the urban utilities', the reform of china's urban utilities has been carried on. Although we have made big progress in the urban utilities reforming, many problems have appeared. Combining the trends of theories of the urban utilities' reforming, in views of the main reasons of the existing problems appeared in non-governmental investment in course of the reform of urban utilities, through the analysis and reference of the experiences of the national public utilities reforms in market economy, it has been proved that relevant institutional construction and innovation of the non-governmental investment in urban utilities are needed in China.There are five sections in this article:The first section: Introduction. It states the research background, summarizes the views of researches of this question both domestic and international, and expatiates on the main view of this text.The second section: The conditions of china's non-governmental investment in the urban utilities. It puts forwards the conditions when non-governmental fund is invested in urban utilities from the perspectives of supply, demand and policy environment etc.The third section: Analysis on the main problems of non-governmental investment in urban utilities. Firstly, the main problems we have faced in the non-governmental investment in urban utilities are analyzed, especially the problems of the policy environments, the competitive mechanism and the credit of the government. And thenthe origin of the above-mentioned problems are analyzed, especially the restriction of the idea, constraint of laws and regulations, the slow-transformation of the government's functions, and the supervisory system etc.The fourth section: International experience of the non-governmental investment in urban utilities. Through the analyzing of the experiences and lessons of such country's urban utilities reforms as England, the United States, Japan and France etc, the author gets the experiences that we should absorb in the process of the urban utilities reform in China.The fifth section: Institutional guarantees of the non-governmental investment in urban utilities in China. It analyzes the institutional innovations which are needed when urban utilities attract the non-governmental investment. These innovations include setting up and perfecting laws and regulations that are related, setting up fair market competition mechanism, improving government supervision in urban utilities, and establishing the credit system of the government etc.