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Analysis of Government Regulation in the Process of Municipal Engineering and Public Utilities Market-oriented Reform

Author: SunZuo
Tutor: WangDianLi
School: Shandong University
Course: Public Administration
Keywords: municipal engineering and public utilities market-oriented approach franchise system government regulation heating
CLC: F299.24
Type: Master's thesis
Year: 2009
Downloads: 130
Quote: 1
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Abstract


The city’s infrastructure of municipal engineering and public utilities, have significant influence on its economic and social development, and closely related to people’s livelihood as well as public interests. As the growth of socialist market economy, traditional development model and management system of municipal engineering and public utilities, has increasingly exposed its shortcomings, including lacking innovation, poor service, inefficiency, and sustained loss-making. With both a heavy burden on local government finance, and result in artificially high costs, rigid price increase, in which case, the municipal engineering and public utilities operation mechanism and administration system is particularly in an urgent need to reform. At present, municipal engineering and public utilities market has been fully opened, monopoly in this industry has been broken, and a diversified investment, financing and operation system is gradually taking shape. With utility enterprises continuously improving operational efficiency and government changing its way of management, reform of municipal engineering and public utilities has entered a new development stage. Owing to different characteristics among different public utilities industries, as well as the management system and operational mechanism varies throughout the cities, there are big differences in goals for advancing reform, some problems still exist in actual operation ,related administration system has not yet been perfected. Thus, in order to remove the institutional obstacles, many systems and institutions deeply need to be reformed.Heating is an important industry among public utilities, which not only has general characteristics of utility industries like water supply, gas supply and public transportation, but also has its particularity. As products and service of public utilities basically has the same attributes, research of government regulatory approaches over heating could be taken as an example.Concerned with research methodology of this paper, the writer has conducted interdisciplinary study, using theories of public management, economics, sociology, administrative science, law and other subjects, through application of theory and practice, normative analysis combined with empirical analysis, case analysis and other specific methods, from a management point of view, to analyze Qingdao municipal government regulatory approaches over heating in an all-around way, and aim to offer suggestions on management ways and means of municipal engineering and public utilities market-oriented reform.In this paper, the writer firstly analyzes industrial characteristics of municipal engineering and public utilities, to clarify how to correct market failures through implementation of franchising system and realize systematic innovation in its market-oriented approach. Secondly, based on characteristics of heating industry, analyzes the main problems of all stages in Qingdao heating market-oriented reform process. Thirdly, the writer has systematically introduced government management achievement in supervising Qingdao heating market in the process of market-oriented reform. Finally, the writer has summed up the main approaches and experience in practice over supervising heating industry by Qingdao municipal government, thus to extract some concrete proposals and thoughts for general supervision of the whole public utility industries.Proposed: the introduction of franchising system is an inevitable choice for government regulation in the process of market-oriented reform of municipal engineering and public utilities; perfection of legal system and service and quality monitoring system is the foundation for implementation of franchising; franchising agreement is the basis to regulate behavior between the government and the bidder; a sound policy environment and a scientific pricing mechanism is the protection to guide enterprises and stimulate orderly competition and healthy development; implementation of mass-satisfaction-oriented examination and evaluation system with authorities taking the lead and community-wide participation is an effective means to strengthen government regulation.This study is divided into five parts, mainly including introduction; choice of China’s municipal engineering and public utilities management system in its process of development; heating development and reform of Qingdao city; government regulation over heating industry in the process of market-oriented approach in Qingdao city; thought and suggestions on government management.

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CLC: > Economic > Economic planning and management > Urban and municipal economy > Municipal economic profiles of countries in the world cities > China > Infrastructure and utilities
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