Research On System Convergence In The Conversion And Reformation Of The Productive And Operational Public Utilities

China has been gradually advancing the reform of public utilities since the1990s, along with the further deepening of the reform of economic system and the transformation of government functions. Nevertheless, the general scheme of the reform of public utilities which was at the national level had not been issued until March2011. It is indicated that the public utilities will be divided into three types as administrative ones, productive and operational ones and the ones which provide public service. Furthermore, different measures of reform and management will be taken according to the characteristics of each type. As thus, the productive and operational public utilities will be reformed into enterprises. Actually, the reform of the productive and operational public utilities had started several years before the release of the general scheme, which however, was rather limited to individual industry. Such reforms were void of top-level design and overall planning. Moreover, the related theoretical research is lad far behind the practice.This research tries to get rid of certain limitation of previous individual study. Focusing on system convergence, it intends to discuss the fundamental issues and universality in the conversion and reformation of the productive and operational public utilities. From the perspective of New Institutional Economics, the research suggests that the essence of the conversion from public utilities to enterprises is institutional change. The theoretical reason why we discuss system convergence is the motivation to reduce the high cost of institutional change. Based on a comprehensive analysis of how each system changes, the research is seeking for effective ways of system convergence to reduce transaction cost.The dissertation includes four parts besides introduction and conclusion. The first part explains the significance of system converging in the conversion and reformation of the productive and operational public utilities. From the perspective of reformed institutions, involved employees and the macro level of the reformation, this part observes the effect of system convergence which is promoting and deepening the general reformation of public utilities. The second part clarifies the content of system convergence. Combing with practical experience and the role analysis, it is decided that the content of system convergence should be divided into two levels. One is about the transition of institutions’ identity, including the conversion of property right and governance structure. The other is about the transition of employees’ identity, including the convergence of personnel management and endowment insurance system. The third part indicates the problems and difficulties of system convergence that we are facing in change of property rights system, transformation of governance structure, interim of personnel management, and convergence of endowment insurance system. Strictly, such summary originate from theoretical analysis, as well as experience and lessens. The fourth part proposes corresponding recommendations to achieve a smooth and effective system convergence, in accordance with the problem analysis in the third part.