Study On The Risk Problem In Privatization Of Urban Public Utilities In China

Since last1980s, western countries had implemented privatization reform in urban public utilities. With the global trend of public management, China began to explore the privatization reform in urban public utilities. Throughout the reform process, privatization has made great achievements in alleviating financial pressure and increasing productivity. However, the nature of public utilities and limited circumstance brought many risks in reform process. Therefore, the study of the risks and how to prevent them has its practical significance.Based on the literature review, this paper defines urban public utilities and privatization. Then the article analyzes current situation of privatization reform in China. This reform is driven by internal and external factors and has different effects in different filed.In third part, the paper tries to find out the factors which block the reform in three aspects. During reform process, the government and private capital will face the risk in entry section, process section and result section. Maybe it can explain the difficulties in impelling the privatization process.This paper takes the privatization reform in UK as a typical case, introduces the measures to deal with the three kinds of risks. From the experience of UK reformation, the article proposes three ways to cope with the risks. Since risk is inevitable, it’s necessary to restrain the cooperation behavior of both sides. As conclusions, to impel reform process, the government and private capital should cooperate under common premises, the government must build a network of regime and choose appropriate reform ways.