The Development Of Chinese Non-Profit Organizations And Innovation Of Public Goods Providing Mechanism

Since the beginning of the 1980s, non-profit organizations in the world have undergone unprecedented development under the background of "global community revolution" . Since the 1990s, Chinese academic field has paid a sustained attention to the development of non-profit organizations, which has become a bright spot in the academic field, and has attracted the attention of more and more researchers.With the improvement of socialist market-oriented economic system of our country and the deepening of political system reform, non-profit organizations have become a rapidly developing sector. This is because, on the one hand, the government can not effectively provide the society with all the necessities under the unified manner. On the other hand, the market has many shortcomings. The sector where the government and the market can not function effectively is the field that non-profit organizations make the most of its functions. The effective functioning of non-profit organizations is both the urgent need of the practice and the difficult question that traditional management theory can't answer. Conducting researches on these issues has theoretical significance of promoting multidisciplinary. It may deepen the recognition to the economic functioning laws of modem society, enrich management science, economics and political science theories, and meanwhile, has great practical significance. According to the research of non-profit organizations, the present theoretical interpretations of non-profit organizations are: (1) the government failure / the market failure theory;(2) the contract failure theory;(3) the third-side management theory;(4) the government, the market and the voluntary sector interdependence theory, and so on.The researches on non-profit organizations in our country started a bit late, and, presently, they focus on case studies and translations. In addition, domestic scholars also actively introduce and use the experience of foreign theories and propose profound explanations to the cause and development of non-profit organizations in China. But we still lack relevant theoretical explorations on non-profit organizations and public goods supplies.Why are rich countries so rich? One reason that has been proved by the experience is that there are more public goods, such as infrastructure and so on, which provide those countries with higher productivity on the processes of production and distribution. Developed countries have always attached importance to the provision of public goods such as infrastructure. Meanwhile, with the economic and social development and the raising of income level, people's demand on public goods, such as health care, recreational facilities, social security, public safety as well as social justice and freedom, etc. is also growing. Accompanied by the growth of material wealth, people's common needs have also gradually increased. These public goods which aim at enhancing people's welfare and maintaining social stability objectively cause the government offer such public goods timely, adequately and efficiently. Therefore, the Western countries offer more and more such public goods and services.In China, for a long time, almost all the public goods are provided monopolized by the government, and the providing ways are simplistic. Since the deficiency of theoretical analysis and understanding, some private items which originally belong to the privates, are treated as public goods and are put into the scope of government provisions, which causes low efficiency of public sectors and enterprises operating these items. The government's low efficient supply of public goods is shown by the low quality and high price of these goods, insufficient supply, untimely response to the people's needs, etc. As the reform is deepening, the government has already been aware of the different nature of public and personal items. The government shouldn't provide some goods that belongs to the privates, but distinguish them clearly, and provide public goods whole heartedly. Providing adequate public goods is not only the government's function but also the restoration of government's functions. Therefore, how to effectively provide public goods to satisfy the people's growing demand becomes a crucial issue.Since public goods are non-exclusive and non-competitive and are difficult to charge, it is hard for the price mechanism to reflect the price and demand, so, the market lacks enough drive to provide adequate public goods. Besides, as it is hard to "get a lift in other cars ", people haven't enthusiasm to show their preference for public goods and to contribute public goods voluntarily. Considering the failures of providing public goods by the market, people realize that non-market mechanisms, that is, collective choosing method, can be taken to provide public goods. This method that has long been believed in may effectively provide public goods. On the other hand, alongside the economic and social development, the malpractice that the government takes up monopoly all the public goods provision is becoming more and more obvious. The government lacks innovation and competitive pressures, so the phenomenon of rent-seeking may exist, which makes people be aware of that the exclusive provision of public goods by the government is not perfect. Correspondingly, the government also realizes the problems of providing public goods by itself. Under the mutual influence of internal cause, the demand, and external cause, finance, the government begins actively to seek other ways to provide public goods. Non-profit organizations can overcome "government failure" and "market failure" in modern society, specifically, is "welfare state failure" and "standard competitive market failure" . But Chinese non-profit organizations may face the problem of imperfect "welfare state" and "free market". Therefore, Chinese non-profit organizations should overcome "government failure" . and "market failure" on the one hand, and realize "effective government" and "efficient market" on the other hand, so that they can construct a public goods provision mechanism suitable for the condition of our country.At present, non-profit organizations play an increasingly important role in providing public goods, but they have a shortcoming, "volunteer failure" . Dealing with the developing situation of non-profit organizations in our country, this essay suggests to putting non-profit organizations in the system arrangement of pubic goods. It also poses the developing mode on how to make the most of non-profit organizations. The mode is socialized service, enterprise-oriented management and market-oriented operation. Besides, the essay proves non-profit organizations on broadening the supplying mechanism of public goods, which is also the major innovation of the essay.