The Reform and Governance of State-owned Economy Based on Classification Method
Huang Qun-hu
Abstract
Huang Qun-hu
Abstract
This paper points out that reform of state-owned enterprises in China,after experience ofdecentralization,innovation and the three stages,has made great achievements,but also faces a more complex situation and a lot of problems.In new period,the main goal of reform of state-owned enterprises should not be privatization of state-owned sectors.Also,it is not to establish an incentive system that lead state-owned enterprises(SOEs) to solely pursue their own development and growth.Since there is a large gap between mature behavior pattern requested by ideal socialist market economic system and actual actions of existing state-owned enterprises,the authors think that,the state-owned economy in China faces challenge to enhance sense of mission.From this viewpoint,the problem of conflicting is stated in this paper.A considerable part of state-owned economy were plagued by conflicting missions,that means,the state-owned enterprises pursuit both profit mission and public mission.One of most important task in next step reform of state-owned enterprises in China,is to solve conflicting problem.To achieve this goal,the authors suggest that,the state-owned enterprises should be divided into three types :general business SOEs,public policy SOEs and specific functional SOEs,each type should have a specific missions portfolio and matching governance system and reform measures.
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This paper points out that reform of state-owned enterprises in China,after experience ofdecentralization,innovation and the three stages,has made great achievements,but also faces a more complex situation and a lot of problems.In new period,the main goal of reform of state-owned enterprises should not be privatization of state-owned sectors.Also,it is not to establish an incentive system that lead state-owned enterprises(SOEs) to solely pursue their own development and growth.Since there is a large gap between mature behavior pattern requested by ideal socialist market economic system and actual actions of existing state-owned enterprises,the authors think that,the state-owned economy in China faces challenge to enhance sense of mission.From this viewpoint,the problem of conflicting is stated in this paper.A considerable part of state-owned economy were plagued by conflicting missions,that means,the state-owned enterprises pursuit both profit mission and public mission.One of most important task in next step reform of state-owned enterprises in China,is to solve conflicting problem.To achieve this goal,the authors suggest that,the state-owned enterprises should be divided into three types :general business SOEs,public policy SOEs and specific functional SOEs,each type should have a specific missions portfolio and matching governance system and reform measures.
Key concepts: China, Corporate governance, Economic system, Incentive, Business, Market economy, State owned, Profit (economics)