In the People's Republic of China

People's Republic of China

China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

, the Chengbao system refers to the private or individual

Individual

An individual is a person or any specific object or thing in a collection. Individuality is the state or quality of being an individual; a person separate from other persons and possessing his or her own needs, goals, and desires. Being self expressive...

 contracted operation of public

Public property

Public property is property, which is dedicated to the use of the public. It is a subset of state property. The term may be used either to describe the use to which the property is put, or to describe the character of its ownership...

 assets such as bus

Bus

A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300 passengers. The most common type of bus is the single-decker bus, with larger loads carried by double-decker buses and articulated buses, and smaller loads carried by midibuses and minibuses; coaches are...

 lines, hospital

Hospital

A hospital is a health care institution providing patient treatment by specialized staff and equipment. Hospitals often, but not always, provide for inpatient care or longer-term patient stays....

s, and school

School

A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...

s. These operators pay a fee as well as a percentage of profit

Profit (accounting)

In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...

 generated to the state. It is regarded as a form of intrapreneurship

Intrapreneurship

Intrapreneurship is the act of behaving like an entrepreneur, except within a larger organization.-Definition:In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean "A person within a large corporation who takes direct responsibility for turning...

.

History

The Chengbao system was first introduced in China during the land reform

Land reform

[Image:Jakarta farmers protest23.jpg|300px|thumb|right|Farmers protesting for Land Reform in Indonesia]Land reform involves the changing of laws, regulations or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution,...

 in China. In order to get around Maoist-era laws prohibiting land ownership, land was "cheng bao" or contracted to the public, such as to individual peasants by the state. The system was quickly expanded to include many other assets. Today in China, many public assets and public service companies such as hospitals, schools and even auto companies are contracted out to private operators who operate it with a profit motive in mind but return operating expenses and profit to the government. This has the advantage of creating extra value to the contractor, generates funding for the state and public, and improves services for the consumer.

Recently, "Chengbao" or contracting services has also been expanded to the private sector, where large privately-owned enterprises allow individuals who aren't employees of the firm operate their assets.

See also

• Economic reform in the People's Republic of China
• Socialist market economy
  Socialist market economy
  The socialist market economy or socialist market economy with Chinese characteristics is the official term used to refer to the economic system of the People's Republic of China after the reforms of Deng Xiaoping. It is also referred to as socialism with Chinese characteristics...
  
  
• Public–private partnership
• Independent contractor
  Independent contractor
  An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when...
  
  
• General contractor
  General contractor
  A general contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and communication of information to involved parties throughout the course of a building project.-Description:...
  
  
• Build-Operate-Transfer
  Build-Operate-Transfer
  Build-own-operate-transfer or build-operate-transfer is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract...