The Division And Cooperation Network Of Public Service:Theoretical Analvses And Empirical Evidence

As the vision of Chinese government reform, Service-oriented government is not only meant to strengthen the government's public service functions, but also meant to be an innovation of the public service system. The division of public service means the government shall give full play to the unique function of the market in allocating resources as well as the absolute function of the society in integrating resources while strengthening public service functions and financial responsibility. By improving the professional advantages of providers and producers, transaction cost could be reduced and appropriate supply mode could be chosen, which could help forming a virtuous cycle of division and cooperation among the government, market and society, leading to the promotion of the construction of public service cooperation network.The distinction between public service providers (planners) and producers is the logical starting point for public service division theory. Government, market and society each has its own advantage in the system of public service. In most cases the government is the provider (planner), and non-profit organizations are often producers of public service, and the production of public service can be outsourced to market players by government. The different arrangement of service providers and producers shall cause a number of mixed modes of provision in practice. The difference among the externality, the homogeneity and the measurable ness shall cause different ways of service provision.Division is the impulsion for the growth and development of public service, and the absolute complexity of the public service production promotes the evolution of the division. There are numerous contract governance in the division of the public service, with the contract incompleteness (incomplete contract) universally existing. The evolution of the public service division comes from the choice of provision system which could help reduce the transact cost. During the spiraling rising process of the contradiction between professionalization and transact cost, government, market, and society gradually achieve a new division balance by repeated games.Except the primary public service division of the provider and the producer, there is the secondary division of public service widespread in the mixed modes of provision which is different from economic sectors. Two complex divisions of public service will connect the distributed,heterogeneous demand with decentralized, heterogeneous supply for docking, which make it possible to improve the efficiency and fairness of the supply. The primary and secondary division could provide the access to the government, society and market and gives full play to the professional advantages of the administrative mechanisms, market mechanisms and social institutions, improving the total social welfare.The evolution of division is an irreversible process from simple to complex, which shall happen from the simple to the complicate and finally will result in the formation of public service network. The primary division of public service makes the public service take the evolution route from government vertical integration to horizontal outsourcing, while the secondary division of public service leads to the evolution from horizontal outsourcing to the public service network. Collaborative network of public service, which could be taken as the third order, distinguishes itself from the planned order and spontaneous order. Information technology, credibility, responsibility, hub organizations and administrator are the key elements of public service network.