“2010’第五届中德公共管理国际研讨会
第五届中德公共管理国际研讨会”论文
第五届中德公共管理国际研讨会 论文
Study on the Responsibility of Chinese
Government for Purchasing Public Service
Ren Qin
October,2010
1
Catalogue
1
Introduction……………………………………………………...……….……....1
2
Current situation
of
governmental
purchase of
public service in
China…...….2-4
3 Problems existing in governmental purchase of public service………………….4
3.1 Insufficient supply in governmental purchase of public service………..…..5
3.2 Model of unlimited government restricted development of market in public
service………………………………………………………………………………5
3.3 Lack of thorough institutionalized safeguard mechanism……...…………..6
3.4 Many defect in management intensity and method of governmental
purchase of public service………………………….……………………………..6
3.5 Insufficient cultivation for non-profit organization……………………..…..7
4 Survey on responsibility of governmental purchase of public service………..…8
4.1 Role positioning of government……………………………………..………...8
4.1.1 Participant…………………………………………………………………8
4.1.2 Decision maker………………………………….………………………....8
4.1.3 Buyer…………………………………………………….…………………9
4.1.4 Supplier of system…………………………………………………………9
4.1.5 Supervisor…………………………………………………………………9
4.2 Duty of government in purchasing service………………………………......9
4.2.1 Providing public service is the most fundamental and holy duty of
government……………………………………………………………….…….9
4.2.2 Strengthening management is the core duty in governmental purchase
of public service……………………….…………………………..………….10
4.2.3 Promotion for development of non-profit organization is the key duty of
governmental purchase of public service………………………………...13
References:…………..………………………………………………………………14
2
1 Introduction
Since 1980s, western developed countries successively started to reform. During the
reform, each country universally chose governmental purchase of public service
instead of traditional monopolistic supply of public service. Governmental purchase of
public service can be understood as following: to perform its responsibility of serving
public, government pays various kinds of social service agencies through government
finance for purchase of whole or part of public service which supplied by contract ways
and whose type and character was defined by government. In China, governmental
purchase still remains at the initial stage and belongs to a new supply pattern of public
service. According to practice in China, fulfillment of governmental duties is essential
condition and significant guarantee for successful purchase of public service. The
obscure, omission and short of fulfillment in governmental responsibility will possibly
lead to failure in purchasing service. This thesis, first, introduced current situation of
governmental purchase of public service in China, and respectively summarized from
aspects of governmental purchase of public service in geographical distribution in
China and in scale of development, and of public service purchase in main field,
operations, objects, general purchasing level. Second, it analyzed exiting issues of in
aspects that government insufficiently supplied public service; that versatile
government model limited development of public service market; that public service
purchase lacked of thorough institutional safeguard mechanism; that problems existed
in management strength, methods of governmental purchase of public service; and that
non-profit organization was cultivated insufficiently. The thesis emphatically presented
the newly examination and scientific definition of governmental role and responsibility
in purchasing public service. Drawing lessons from foreign scholars’ research
achievement, the author deems that our government should be a participator, decision
maker, purchaser, supplier of system and supervisor in purchasing public service. The
author also holds that governmental responsibility should be defined as that supplying
public service is the most basic and sacred duty of government; that strengthening
management is the core duty of governmental purchase of public service; promoting
development of non-profit organization is the key duty of governmental purchase of
public service.
2 Current situation of governmental purchase of public service in
China
3
After more than 30 years governmental reform, supplying model and structure of
public service in China has experienced enormous change that governmental purchase
of public service has become a significant supply model of service. Development in
public service purchase as well reflected the basic reforming direction of Chinese
government in the process of marketilization economy and social change which meant
the establishment of service-oriented government based on corporations and non-profit
organization. On the basis of specialization and cooperation, government found that
combined public preference and advantage in obtaining resource with advantage of
market and non-profit organization in producing service, by means of governmental
purchase of public service, on one hand, ineffectiveness of micro-management and
incentive mechanism can be overcome of government, on the other hand,
ineffectiveness in resource distribution can be overcome of non-public organization, to
realize the dual-purpose in changing the governmental monopoly in public service, in
advancing the service efficiency of public budgeting resource, and in promoting
development of non-government organization.
Governmental purchase of public service in Chinese mainland first emerged in
Shanghai. In 2000, it was initiatively put forward and carried out in Shanghai.
Experiments had been promoted of home-based care for the aged relied on facilities for
the elderly in twelve blocks of six districts including Luwan district. Up to now, it is the
first time that governmental purchase of public service entered practical field in China.
From then on, practice of it has been in the ascendant that several cities has spearheaded
and explored in various service field of it including Beijing, Shanghai, Shenzhen,
Hangzhou, Nanjing, and Wuxi and so on. Recent years, it has been gradually extended
nationwide and widely applied in several field of social public service by government at
all levels and it demonstrated localization, large-scale, and diversification in
development tendency.
From the aspect of region, Chinese local governmental purchase of public service
has prompted from large and medium-size cities in developed region to inland cities in
less developed region. Government at all levels has become implementers and driving
force from provincial and autonomous government to residential district committee.
From the standpoint of scale of development, governmental purchase of public service
has rapidly developed in fields of service of home-based care for aged and of public
health service in community. Constant increase of governmental purchase in
investment, project, and benefit target has become a crucial practice approach for
continuously satisfying increasing social need in public service and improving quality
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and efficiency of public service in China.
From the perspective of main field of
public service purchase, it mainly located in rural public service, such as government
purchases public service for peasants in Anhui and Hubei province; sanitation
department responds for cleaning and maintenance of public facilities in Shenzhen city;
public health service in urban community, for instant, Beijing mode, Wuxi(in Jiangsu
province) mode and Weifang(in Shandong province) mode; social security service, for
instance, community service for the aged, employment service and birth control service
in Shanghai, Shenzhen, and Nanjing; community service for the aged possessed with
distinguishing feature in Beijing and Tianjin; service in social undertaking, for instance,
Changsha mode in cultural and gymnastic service; public service purchased by guild,
for instance, industry survey, business consulting, technical service, response to suits
and litigation of trade dispute, research of industrial generic technology, industrial
electronic commerce and industrial public information; besides, public service in
charitable aid and judicial adjustment, for drag addict and problematic youngsters.
From the aspect of purchasing ways, it mainly included purchasing project, purchasing
post and purchasing guild service. Primary objects are non-governmental organizations,
including some transformed from public institutions and legally registered, some
cultivated and integrated by government, and some established by organization and
individual. From the standpoint of general purchasing level, purchase level of public
service means how much proportion purchase has occupied in all financial expenditure
of public service. It is lack of detailed record of external purchase of government in
existing public financial record and statistical data. Furthermore, there isn’t ready-made
data which shows how much government purchased public service from exterior in
each year. According to the study of Chinese scholars, however, external purchase of
public service has been in a high level. Demonstrated by the research data, from 2001 to
2004, 20% to 30% of public service of production and delivery has been accomplished
by individuals who indirectly employed by government and about a quarter of financial
expenditure on salary was paid to person out of the governmental system in average.
Supposing that average income of externally employed person was equal with
personnel in institutions, such sum of expenditure amounts to the expenditure of
employing more than eleven million “full-time invisible employers”. Producer for
external service covered widely, including traditional autonomous organizations such
as rural residential committee, growing community service organization, non-profit
organization, non-governmental organization, and private, collective service
organizations or state-owned ones which disconnected with government.
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As a creative form of supplying public service by government, governmental
purchase of service embodied the need of government transformation and change of
governmental function which means government transformed from omnipotent
government to limited government with separated administration from society and
clear governmental responsibility; advanced efficiency and quality of service, reduced
cost of service by means of introducing competition mechanism and conducting
marketization operation to break down the monopoly position of government in
producing public service, consequently to realize the improvement of service benefit;
realized
a
win-win
situation
among
government,
profit
institution,
and
non-governmental organization that supplying public service by purchase can make
government concentrate on his own duty to avoid “offside” and “omission” and provide
non-governmental organization with large market and development space to provide
condition for cultivating and expanding Chinese non-governmental organization. In
China, governmental purchase of public service, although, are still new emerging thing.
Production of public service has already deeply and widely implanted in social system
of labor division. Specific influencing factors will constantly increase the proportion of
expense on purchasing public service in governmental expenditure of demutualization
restructuring of public institution, of human capital aging and mobility barrier of
institutional personnel, new increase of need for service. Therefore, it has been in a
irreversible rising trend of governmental purchase of public service.
3 Problems existing in governmental purchase of public service
The way that public service provided to society has transformed from government
providing it by itself to governmental purchase from society. Consequently,
management function, management method and management tool has been influenced
and changed which led to reconsider its role, scale of duty and behavior area of
government. What’s more, it is process for governmental adjustment which will
certainly influence the governmental behavior of purchasing service. At present,
problems can be concluded as six aspects existing in governmental purchases of public
service.
3.1 Insufficient supply in governmental purchase of public service
First, public service purchased by government can hardly meet the social need in
number. It represented as low proportion of amount of money in budget and small scale
of purchase capital. Take Guangdong province and Tianjin where acquired remarkable
effect in reform of local budge as example: governmental purchase budge realized 3.66
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billion yuan in Tianjin in 2004, in which purchase of immaterial service took up 2.1%
of gross amount of practical purchase; expenditure on project purchase was 10.6 billion
yuan in Guangdong province in 2004 which took up 47.23% of total scale and
expenditure on service purchase was merely 1.8 billion which took up 8.11% of total
scale. Second, generally speaking, purchase scale was quite limited. Service for the
aged and undertaking part function of government department was the main part.
Nevertheless, it is seldom purchasing in leading field of public service such as public
health, education, culture. Third, object scale of purchase was narrow. Most
organizations are organized by administrative institution or government itself. And
many government just authorized its subordinate non-profit organization to undertake
some of its function, organized some non-profit organizations and directly mange them
and entrust them to provide service. Consequently, there was less open and competitive
purchase.
3.2 Model of unlimited government restricted development of market in public
service
Under condition of planned economy, almost all the things belong to social work
has been undertaken by government, such as public benefit activities, social service,
social welfare and social assistant, from organization structuring, financing to
implementing specific work. Promoting by the inertial thought that government is
embracive, government will first turn to administrative power rather than market
mechanism, when new need in public service appeared, because administrative
monopoly can mobilize social resource, realize intention, avoid risk more directly and
rapidly and as well as make government lack of motivation to improve management
and promote quality of public service. As a result, governmental scale increasingly
expanded and eliminated the existing necessity of professional social work. At present,
this situation has not fundamentally changed. Government and its public institution
mastered most of resource in field of public service and don’t willing to hand over some
project in social service to social organization. Meanwhile, because it is lack in number
and scale of social organization and it is hard to satisfy different need of social service,
market for social work and service in the true sense haven’t been formed in China.
3.3 Lack of thorough institutionalized safeguard mechanism
It is a new mode of government to provide public service by purchasing it. It is
also a new way to introduce market and competitive mechanism and diversifying
producer of public service into field of public service, and to combined government,
market and civic society together. This new mode absolutely required a whole set of
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new and equivalent policies, regulations and supporting measures. But, at the present
stage, it remained at a beginning stage. In system supply, an operational mechanism and
control system hasn’t been established which can clearly define the variety and scale of
governmental purchase. First, it was lack of relevant laws. Now, the only law is
Government Procurement Law of the People's Republic of China which is relevant with
it and was enacted in 2003. The scale stipulated by the law includes goods, project and
service. But, according to the law, the understanding of service was limited to logistic
services operated by government itself and public service wasn’t included in the
procurement scale and was lack of corresponding protection. There wasn’t social
organization acting as object of purchase. Deficiency of law led to large arbitrariness
and low efficiency in local governmental work. Second, it is lack of systematic and
clear standard for governmental purchase of service from social organization as
following: scientific orientation of relationship between subject and object of purchase;
detailed and definite content and scale of purchase; clear ways of purchase and its
limiters; specific evaluation criterion for result of purchase; expedite relief way when
dispute happened after purchase behavior and so on. Third, supervision is not
normative. Mainly based on internal supervision of government, and without a
independent third-part for supervision, authenticity and fairness can’t be ensured of
evaluation information from supervisory institution.
3.4 Many defect in management intensity and method of governmental purchase
of public service
These defects mainly manifested in four aspects. First, low transparency, such as
society was not clear about what kind of service local government need to buy. Second,
insufficient competition, such as direction method was more frequent used than bidding
with high marketization while choosing supplier of service which result in that public
institution within government system win the biding most of the time. Third,
old-fashioned ways of monitoring and assessing which can’t reflect the true feel about
service. Forth, overlarge space of freely pricing in checking price of service which
result in increase in relevant financial expenditure after purchasing service and new
formation of rent-creating and rent-seeking.
3.5 Insufficient cultivation for non-profit organization
Object of purchase, although was not limited to non-profit organization which
actually was the main supplier for public service purchased by government because it
possesses function of providing public service and can gain trust of public much more
easy. Non-profit organization has been increasingly valued in recent years in China.
8
Whereas, it has been a challenging task to cultivate and make non-profit organization
become a vigorous power in governmental purchase of public service. Since middle of
1990s, Chinese non-profit organization has a rapid development which also has
problem in insufficient number and scale compared to the demand of governmental
purchase in public service. There were two indicators to indicate the problem. The first
indicator is number of social organization in each 10 thousand people. In countries with
advanced social organization, each 100 person own an organization. In 1997, there are
1.6 million non-profit organizations in America which means 70% of citizen at least
belonged to one non-profit organization and a quarter of individuals are members of
more than 4 organizations in the third sector. But in China, each 10 thousand person
merely owned 1145 non-profit organizations which was the similar situation in Egypt
and was just 1/90 of proportion in France and which was not only far below the
proportion in developed countries, but also below that in some developing countries
such as India and Brazil. The second indicator is amount of investment. In western
countries, 30% of fund invested by government. In China, average expenditure was
191.97 million yuan of Chinese organization which was 0.46% of GDP, according to
nationwide survey accomplished by NGO research center of Tsinghua University in
2000. Such amount was much less than several countries and hasn’t been
fundamentally improved. Insufficient investment of government has restricted the
development and social organization and has its ability on undertaking supply of public
service from government confined. Therefore, social organization was lack of
competitiveness in implementing many projects of public service and capacity in
mobilizing social resources and even relied on government. On the other side,
professionalization level of supplying public service needed to be improved of
non-profit organization because of its weak power and insufficient professionals and
social credibility.
All the problems mentioned above has manifested that governmental purchase of
public service hasn’t been on a standardized way of development in China, and that in
purchasing public service, government confounded its role and duty. Governmental
purchase is a way of providing public service, as well as a comprehensive
representative of new public management theory, governance theory and idea of
service-oriented government. In the process of constructing a service-oriented
government, government transformed from omnipotent one to limited and efficient one,
to responsible and response one; transformed from one-way management to
cooperative governance which make the task and environment of public administration
9
has a revolutionary change and deeply reformed the governmental behavior. Thus, we
should pay more attention on many factors which influenced development of
governmental purchase in China, in which the crucial factor was reconsidering and
scientifically defining governmental role, scale of responsibility and behavior area
while discussing and acquiring knowledge on behavior law of governmental purchase.
4 Survey on responsibility of governmental purchase of public service
4.1 Role positioning of government
Responsibility always connects with certain role. To make clear the duty of
government in purchasing public service, it is necessary to analyze the role of
government in public service. American scholar, Emanuel • Sawa Si, who engaged in
study of management of public service over a long period, deemed that distinguishing
producer from supplier of service was of vital importance and was the fundamental of
defining role of government. He also held that the ideal role of government was
affirmant for demand of public goods and service, wise purchaser, experienced
examiner and assessor for all purchased goods and service; effective collector for fair
tax and careful payer. As to role positioning of our government, the role of government
can be defined as participant, decision maker, buyer, system supplier and supervisor.
4.1.1 Participant
As a participant, it is the duty of government to supply public service in high
quality and efficiency to citizens. Therefore, service purchase can’t separated with
effective participation of government which need to change the joint character of
producer and supplier, separate production function from supply function and engage in
providing public service as a buyer.
4.1.2 Decision maker
As a decision maker, government should know demand from public, draw up
development plan, reasonably conduct design of system and arrangement, and shape a
system frame that different system can jointly perform including government, market,
non-governmental organization, and family.
4.1.3 Buyer
As a buyer, government should be responsible for the people who act as an
investor by using revenue from tax payer to purchase service. While investing in a
project of public service, government should carefully take importance, pertinence and
effectiveness into account and choose the most capable and efficient organization to
undertake the duty. What’s more, a strict fiscal system is necessary which brings fund
10
for purchasing service into annual governmental plan of procurement, implement
united management, and ensure use of funds as ear-marked and transparency,
normalization and systematism of finance.
4.1.4 Supplier of system
As a supplier of system, the enforcement of governmental purchase of service
should base on maturation of market, sound laws and regulations, and developed and
strong non-profit organizations. Thus, government need to take on the responsibility of
system designing and supply in order to create excellent institutional environment for
enforcement of purchasing service and reduce indeterminacy factors in process of
producing and providing service.
4.1.5 Supervisor
As a supervisor, government should prevent public interest from infringement
caused by producer of public service pursuing benefit and take responsibility for
effectively supervising and controlling the producing process of public service.
Moreover, it is need to determine assessing standard for price of service and to establish
reserve of assessment experts, so as to regularly assess service project of provider, set
up a comprehensive assessment system combined with prior assessment, process
supervision, and evaluation after execution which ensure service project to be regulated
from the stage of setting, to the stage of supply, and to the stage of evaluation by
thorough mechanism.
4.2 Duty of government in purchasing service
Governmental purchase of public service leads to governmental retreat from part
field of public service which doesn’t mean government can shirk duty in these fields.
After clear defined governmental role in purchasing public service, governmental duty
should turn into a manager in higher level and broader sense.
4.2.1 Providing public service is the most fundamental and holy duty of
government
Providing public service was the most fundamental and holy duty of government
and the significant source of rationality of government existing. Therefore, government
can’t shirk the responsibility in whatever condition or way. Purchase for public service
merely implies the internal structural adjustment of governmental obligation and
transformation on ways of performing duty, but not reduce, transfer or vanishment of
the duty. To fulfill this obligation, firstly, government should provide sufficient fiscal
investment which suit for the social demand. Since supplying public service was the
fundamental duty of government, funds for purchasing public service should be bring
11
into fiscal budget and corresponding policies, regulations, and law should be
promulgated so as to support governmental purchase with fiscal system. Secondly, it is
necessary to establish supporting fiscal policies, to set up account for special funds in
accordance with regulations, and to transfer funds to successful bidder of service
producer in specified length of service in ways of budge of local government. Specified
funds for purchasing service must spend on fixed public service. Thus, fiscal transfer on
purchasing public service at random can be turned into institutional expense.
4.2.2 Strengthening management is the core duty in governmental purchase of
public service
Years of practice abroad manifested that management was of vital importance to
governmental purchase of public service. If there is bad management, there is bad
consequence. Government should concentrate on making a regulation and process
management.
Firstly, it is necessary to carry out laws and regulation or normative policy for
governmental purchase of public service. At the moment, there is no rule to follow
while government purchasing public service, whereas, sound legal environment is the
crucial guarantee for enforcement of governmental purchase. Thus, government was
required to carry out relevant new law and regulation and adjust, amend and
complement them according to implementary situation. Government could choose
either to specially carry out them, or to revise government procurement law to realize
the purpose by bringing governmental purchase into the extent of jurisdiction. It should
be clearly defined in the normative policy the fundamental problems such as
purchasing qualification of subject, content of purchase, object of purchase, capital
source, regulation of purchase,
management and supervision of contract and
assessment, to make behavior agent of governmental purchase of service and relevant
activities regularly operate under certain rules.
Secondly, it should pay more attention on process management of governmental
purchase of public service. The process should include identification, purchase and
performance of service project.
Identification of service project implies to definite the object of governmental
purchase and to make sure which public service suitable for purchase. It is essential for
government to comprehensively know and collect relevant information about demand
on social service, to carry out integrated planning on basis of consulting integrated
planning of social development and fiscal plan, to determine the project, quality and
amount of service which should purchase from society so as to make work out
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reasonable fiscal scheme in income and expense and consequently to ensure effective
supply of social service. In theory, project of public service that government wasn’t
capable of managing or shouldn’t have to manage should be accomplished through
governmental purchase and produced by non-governmental organizations. Based on
experience from abroad and practical situation in China, scale of government purchase
of public service can be determined as gradient purchase and gradual promotion. The
first step starts from municipal services such as cleaning roads, cleaning, maintenance
of urban landscaping, repair and maintenance of pipeline and refuse collection, and
public service in community such as social assistance, veteran placement, counseling
psychology, meditation of dispute, and service for the aged. Along with accumulation
of experience and wide approval from government and society, public service can be
broadened into fields of public health, non-basic education, cultural service and
exploration of job. Then, it can be broadened into trade sector such as statistic analysis,
confirmation of aptitude, project assessment, business consulting, technical service and
lawsuit of trade dispute.
Purchase of service project implies to establish normative purchasing system.
Producer and buyer should sign a formal contract in accordance with service in which
quality, standard, expense and responsibility of default are clearly demonstrated. The
contract could regulate the operational procedures of application (or bidding),
examination and approval ( signing a contract), provide and settling account in
purchasing service. Normative procedures could ensure the successful implementation
in later period. It is a comprehensive process that government purchases service which
contains complex problems in management in which transparency and competiveness
was the key. An open and competitive procedure should be adopted by government for
choosing qualified organization to be the supplier. By way of biding, expenses on
purchasing would be worthy.
Performance of service project implies that main content of management is
performance of contract of service project. After signed contract by government and
producer of service, relationship is clear between contracting partied about right and
obligation. It ensures enforcement of project that producer of service normatively
perform contract and quality of service. Drawing up plan for contract violation can
avoid loss of fiscal capital. Conclusion of contact for governmental purchase could
make foundation and content of commitment, service funds, effective time of contact
and right and obligations clear so as to ensure effective performance of service project.
Thirdly, management of assessment and supervision should be strengthened. As a
13
supervisor, government needs to set up a system of evaluative criteria for regular
examination and evaluation of service project and to set up a comprehensive evaluative
system on performance with prior assessment, process supervision, and evaluation after
execution in order to ensure service project to be regulated from the stage of setting, to
the stage of supply, and to the stage of evaluation by thorough mechanism.
A scientific, just and professional system for evaluation should be established by
government to assess supplied service. The system mainly includes subject, content,
criteria and type of evaluation. Governmental department in charge should establish an
institution for evaluating service project in which assessors should include
governmental department in charge, industry administrating department, professionals,
and representatives of service object and the third party. Governmental department in
charge should also draft indicator system for evaluating service, try to detail all the
parameters of service quality and finally improve professional degree, fairness. The
fundamental content of assessment includes service standard, service quality and
service effectiveness and so on. Assessment criteria mainly include capacity of supplier,
standard of service quality, measuring standard of service and standard of service
achievement and so on. It is helpful to set up various types in order to carry on
diversified evaluation.
In the process of purchasing public service, supervision is indispensible. Subject
of supervision should be diversified which include independent supervisory organ of
third party, law office, audit firm, professional research company. Those institutions are
independent and professional which remain objectiveness and fairness. Moreover, the
public and media supervision more directly reflects achievement in purchasing public
service by government. And professional supervision will supervise problems occurred
in governmental purchasing from a macro point of view. The content of supervision
includes supervision on practical situation of supplying service to take action, to warn,
to make corrections within a fixed period or even terminating a contract for
nonperformance behavior in contract period, and supervision on service quality to sign
responsibility contract on service quality and to implement producer responsibility
system while signing purchasing contract with service producer. Besides supervision
on service producer, internal supervision of government is also essential. Financial
department should supervise on capital for service purchase, especially on purchase
process. And purchasing department should supervise quality and amount of service.
Supervisory types could be various. Performance evaluation can be adopted. It is the
popular way to supervise by performance evaluation whose core is establishing
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performance evaluation system.
Finally, it should attach importance on risk management. Risk possibly exists in
purchasing service, such as out of control, unfairness in choosing procedure. As far as
cooperating with the private, political risk and commercial risk and some other risks
could possibly happen. Many foreign scholars study on this, such as Keitel’s research
found that governmental purchase of public service can’t easily be developed and
promote competition and that it was not easy to find supplier of social service,
especially qualified non-profit organization. Risk evaluation and precaution is the
essential duty in governmental purchase of public service. In governmental purchasing,
it should build a risk-proof frame based on responsibility, improve supporting policies
and set up system of risk avoidance to ensure effective and fair supply of public service.
4.2.3 Promotion for development of non-profit organization is the key duty of
governmental purchase of public service
In theory, object of purchase could be any organization, individuals or even other
government. According to experience abroad, excellent non-profit organizations with a
great variety goods and reasonable structure were the key selects of purchasing public
service by government. Services produced by non-profit organizations provided half of
the service in America. Obviously, they are main supplier of public service purchased
by government. If government expects to supply efficient and superior public service, it
should place non-profit organization as important partner in accordance with the
requirement proposed by our government and practical situation of encouraging
participation of non-governmental organizations to provide public service. And it is the
key duty to cultivate and promote development of all kinds of non-profit organizations
of governmental purchase of public service.
Firstly, government should support non-profit organizations, especially with
policies and funds. In policies, government should enact special law for non-profit
organizations and define their role. In capital assistant, government could provide
capital or financially assist them through tax exemption, bring encouragement on
financing of non-profit organization into public finance system and set up developmet
funds for non-profit organization.
Secondly, it needs to pay equal attention on encouraging development and
supervision management and to create a nice legal environment. It is helpful to
intensify management and supervision on non-profit organization to normalize and
institutionalize them. A series of relevant laws and rules should be established
according to the socialization tendency of non-profit government such as forms of
15
cooperation between non-profit organization and government, definition of their role
and functions, financing mode, contract drafting and requirement for market
assessment which ensures operation of service purchase with legal guarantee.
Thirdly, it is of importance for government to build amicable partnership with
non-governmental organizations. Non-profit organization is social organization which
is independent of government. It never exist relationship as leader and subordinate
between non-profit organization and government, whereas, non-profit organization
owns independent right for decision, operation, and self-development and accept
supervision from government. Thus, relationship between government and non-profit
organization should seek balance among support, management and independence
which means government provide non-profit organization with political and financial
support as well as ensure their independence and provide opportunity for their
professional performance and professional value. In funds, government offer funds to
organizations as well as make them own the right to use. In administration, government
should give essential support in the process of organizations providing service such as
provide essential supporting material to community and residential and coordinate each
department and units to participate in the activities and so on.
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