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On the Research of Chinas sports enterprise privatelyoperated reform of necessity and countermeasuresZhan Zou,Ronghua Liu 2,Li- li Ding 3,Li Li 4, (1.Institute of PE,Southwest University of Science and Technology, Mianyang Sichuan 621010; 2. Department of P.E, China University of Geosciences (Wuhan) 430074;3.institute of foreign languages,Southwest university of science and technology institute of foreign languages; 4.Institute of PE, Jianghan University, Wuhan 430056)Abstract: It is an inevitable requirement for Chinese sports career to be privatized since Chinese sports has developed to a certain stage. This paper by using the method of literature, logic analysis to analyses the necessity of privatization reform of Chinese sports career, and explores its reform aim, mode as well as influencing factors. It also points out that it is a gradual process to develop sports privatization. And during the privatization process, competition mechanism should be introduced, privatization ways should be flexibly chosen, and government supervision of the reform should be strengthened to promote the development of sports career.Key words: sports career; privatization; reform; necessity; countermeasuresPreface:Under the traditional planned economical system, the whole social organization is divided into several basic parts including administrative units, public institutions and enterprises. The public institution,as one of the fundamental social organization forms has its own social position, characteristics, objective, functions as well as its managerial methods different from that in administrative units and enterprises. The “ career “in Chinas traditional management systems specially refers to the “social undertakings” without production revenue, whose expenditure is disbursements from the national treasury , mainly includes departments and units of education, science and culture, sports and health and sports institution is its basic part.At present, the sports management system in the world shows a tendency of convergence, with the developed countries strengthening governments instruction and improving national financial investment in competitive sports field along with developing countries that have begun to advocate diversification of investment to sports public service in the mass sports fields. In terms of sports resource allocation, the western developed countries identify and allocate sports products and services in accordance with the general sports market scale, make the sports products and the value of sport service market oriented. The western countries are upholding the policy of macroscopic regulation and control on the sports to achieve the self-regulation and development from the aspects on its fuction,objective,and policy .The Chinese traditional sports cause is built on the planned economic system which is highly adapted to centralized and unified system .To some extent, it has its real rationality to exist and the historical necessity, and also has played important role. Howerver,we cannot continue to use the definition standard of “ social cause “ which formed in the traditional planned economy system in the socialist market economy nor can we completely copy the so-called public product definition standard popular in the western developed countries. At this time, what the social common need is the objective standard to define the function scope of national sports undertakings under the socialist market economy. It has to meet common needs of society and gets financed by the state. And if it is not fulfilling this condition, it should not to be held by the government. The corresponding sports organizations also cannot continue to keep it within the management system of the national public sports institutions. Instead, they shall go into the privatization reform, to face the society and market.1 on privatizationAll countries are on a road to nationalize and privatize at the same time as a whole. Privatization is a dynamic concept meaning that the government depends more on the private organization or market mechanism to provide goods or service, while less depends on government itself to satisfy the public. Privatization Reform is aimed to suppress the direct interference from government and to improve the efficiency of social resources allocation, and then to establish private sectors which can exert great pressure on government through the ownership reform, so that to speed up the reform process of government on property security protection, contract implementing, enterprise running environment improvement. And the result to do so is the commodities or service and its related system once produced or manufactured by public sector and private sector jointly may completely be supplied by the private sector only.2 Necessity of privatization reform of sports undertakings in ChinaSports management system in our country is based on the soloist planned economic system .We have to admit that our past sports system, to some extent, satisfied attend to the demand of the society. In a long period, hunting for the gold metals is the psychology of the mass as well as the function presentation for the government to develop sports. It can be called as the public products or the standard public products. However, at present the situation is the fat organizations in the sports institutions with low efficiency, low qualities of public sports commodities and services, high operation cost existing, capital shortage or development lagging behind, etc. Therefore the reform of the institutions is a must for achieving sustainable and sound development of Chinese sports institutions and public sports services. However, privatization is being called on as a new method for sports undertakings reform. As you can see below: 2.1 Privatization can reduce the cost of the operation of sport undertakings Sports management system in our country is founded by our government in full or balanced financial support, and the budget is kept by administrative methods with a certain quantity,which prepares a common psych of “waiting, depending and asking” .For the public institutions provide some products monotonously, they take little consideration into the the cost of the sports products or service.Natuarally,the consumers and tax payers and the mass have to bear the extra costs of the sports products. And this problem can be solved by the appliance of privatization .Our abundant practice prove that costs of products and public services provided by the private sector in a way of an outsourcing contract is lower than the budget cost of non-governmental institutions.And the privatization from USA can support this idea with saving 25percent of the expenditure even below the preserved estimate.2.2 Privatization can improve the managing operation efficiency of sport causeIn a long time,the low efficiency of our sports institutions management has become a fact.At the same time,due to the monopolized supply of public sports commodities, the quality and efficiency are not considered seriously, which can be handled properly by the way of privatization.Property will get clearer with monopolization been broken down,so that to embrace a new competition layout in an overall way, and to improve the efficiency.Therefore,the privatization can improve its internal efficiency.2.3 Privatization can stimulate the participation of nongovernmental capital and advance the sport cause reform.The capital source of sports cause is monotonous, which limits the development of sports cause, meanwhile affects the service and quality of public sport commodities. The participation of nongovernmental capital can make it up those defects of capital shortage and to break the monotonous capital source situation, to form a diversified investment body in order to further the reform and sustainable development of public sport undertakings.3. Privatization reform objectives of public sport undertakings in China In 2011,in the “ twelve-five ” year -plan of sports development ,our government pointed out in the overall objectives of sports development that we should deepen the reform of physical undertakings, speed up development, raise the standard of Chinese sports development and benefits, improve the structure and quality, promote the good and fast development, while speeding up the improvement of public sports service system, improving the level of public sports services. In march 2010, on the development of sports industry guidance, the State office of the State Council emphasized on accelerating the formation coexistence of different forms of ownership as basic principles and main objectives ,fully participating in economic patterns ,co-building sports industry so that to form a combination set of sports public services and marketing services, and to achieve harmonious development of sports and sports industry.Privatization is a general orientation for the reform of sports undertakings. We think the objectives will be:Firstly, on the basis of redefining the functions of the national public sports under the market economy condition, we should put some sports projects and functions of the institutions into the market, to make it develop into privatization, through gradual adjustment, shrinkage and conversion of the ranges of sports functions of the State, so as to fundamentally change the situation that the country arranged all sports careers.Secondly, separate national Sports ownership, management, and operation rights, reclassify, adjust and standardize rights, responsibilities and interests relationships within government agencies and sports units. To improve management efficiency and improve its vitalization by innovating the operation mechanical. Establish modern sports managerial systems which can adapt to China socialist market economy and the law of sports development phase.4 Carry forward privatization reform of public sport undertakings in China Privatization reform of public sport undertakings in China is just in the starting process. This reform is a complicated project referring to many respects, hard to get it perfected with a little effort. We can only achieve it step by step for its complication and processes.4.1 Carry forward privatization reform of public sport undertakings step by step with planPublic sport undertakings in China enjoy its unique national conditions and historical backgrounds and it is a giant but complicated and systematic project which decides its complication and processes. Privatization reform of public sport undertakings in China is just in the starting stage. Therefore, we can only achieve it step by step avoiding rush leap and big conflicts, in order not to affect reform itself and social stability.4.2 Fully introduces competitive mechanical in the process of privatization.In principle, monopoly imposed by the government should be removed. If the Government is efficient, then there are natural advantages as barrier for others to access .So the government has no need to strengthen this out by using the legislation privilege. Therefore, the limitation for entering is more essentially a reflection of lacking efficiency, rather than the claim to prevent overlapping production, and sunken cost proof .For entrepreneurs can never have less strategic vision on the operation than government officials. Under conditions of free competition ,if overlapping production and sunken cost phenomena appear, it just means the sunken costs of overlapping production and competition are much smaller than that from competition and potential competition. In fact, we ,most often, can find this in the state - owned economic sectors which are boosting a strict examination and approval system. Therefore, in the privatization of public sports , we should introduce a competition mechanism to the supply of sports products and services to break the state monopoly, to improve the quality and efficiency of public sports services.4.3 Choose the best approach flexibly according to the actual situation Privatization can be achieved through a variety of ways, and delegation is the most common way for privatization, which means in this case the government delegates the actual production activities to the private sector, but what and how much will be provided is decided by the government. The formats of commission authorizing usually includes contract, franchise, subsidies and remove of administrative access. Take the privatization processes and practices throughout Europe and the United States as example, it is not hard to find that operation of privatization even the simplest one is the result of privatization of comprehensive use of a variety of ways. Therefore, the privatization of public sports career should be based on its own characteristics . In the process of privatization of public sports, we should consider about the reality, flexibly choose the best path for privatization so that to effectively advance the process of privatization reform of public sports.4.4 Establish supervision mechanism, and strengthen the supervision functionThe problem for government to meet after privatization of public sports career is how to supervise.Because the function of the government has already transformed from paddling to steering, from athletes and referees into a single judge role. The importance of governments supervision is decided by the purpose of privatization. If the government did not do what they should do,or the government intervention is in the absence , public sports service and the quality of the products provided by the private sectors will get affected greatly ,which will finally damage the social public interests.And it goes against the original intention of privatization of public sports enterprise. Therefore, we must establish a perfect supervision mechanism, and strengthen the supervision and administration of the government function.5 epilogueThinking about the privatization of our countrys sports enterprise, the core of the problem should be placed on the choice of competition and monopoly. To introduce market and competition in the public institutions will be put on the first priority. Privatization means cancelling the monopoly in public service provision. Therefore, the essence of the problem is not on the public or private
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