Studies On Socialization Of Public Services

In recent 20 years, administrative reforms are taking place throughout the western world. Although the content, the mode, the measures of the reforms in each country are different, there appears the same theme: socialization of public services. It represents a foundational innovation of the government administrative practice.The main reasons why the socialization of public services comes up are as follows. Firstly, public services that provided mainly by the government don't function well in the rapidly changing, information-rich, nowledge-intensive society of the 1990s. Secondly, globalization not only provides a spacious arena, but it brings challenges and pressure as well. The governments have to change their administrative system to remain competitive in the new global marketplace and the governments have to struggle to adapt to the circumstance to become more flexible, more innovative and more entrepreneurial. Thirdly, the development of market technology makes it possible that public services can be socialization. The theoretic foundations of the socialization of public services are the following. The most important one is Public Choice Theory. Public Choice Theory is characterized as the application of "economic reasoning" to nonmarket decision-making. As a result, individual self-serving activities will lead to government failure and the best way to resolve government failure is to break down government monopoly so that the public will have freedom choosing goods and services. The second is Managerialism. The main point of Managerialism is that there is no difference between public sector and private sector. So the government should make full use of the theory, the model, the method and the technique of private sector. Principal Agent Theory is the third and it concentrates on concluding contract. The last is Transaction Costs Theory. It believes it is better that some services should be provided by public sector and others be provided by private corporation.In their practical forms, socialization of public services can be such as: marketization and non-marketization. Maketization includes privatization, public-privatepartnership(contracting–out\Franchise\Co-production) and competition.Socialization of public services is a popular theory and movement of governance developed under the particular circumstances. It offers a different view over management reform of the government and the study of public administration. The reform has improved the competition of the western countries. China is a developing country and has been transforming economic system from planned economy to socialist market economy. We should take advantages of useful aspects of Entrepreneurial Government to improve validity of Chinese government reform.