Contemporary Governance Changes And The Third Sector

In the last twenty years, many countries' governments all over the world have carried out a great reform aimed at good governance. At the same period, as the development of political and economics reform and the improvement of citizen's political consciousness an enormous government reform has also take place in China. Although the government reform in China is different from the western countries, the essence of it is to find s system design to improve the citizen's interest and the government's design efficiency, that is to .say to find a system with high efficiency to provide public goods.According to non-excludability and non-rivalness, we can divide public goods into pure public goods, club goods, and common-pool resources. Based on the analysis, many systems to provide public goods can be found, that will overcome the market failure and government failure.Tradition public administration has not broken the way of public goods provision of government regulation and market mechanism, and the importance of The Third Sector to provide public goods has been ignored. As an effective way to provide public goods, the Third Sector can promote the development of government reform. Also it make the transformation of the government's function possible.The Third Sector of western's countries is to overcome government failure and market failure, that is to say to overcome welfare country failure and market competition failure. But The Third Sector in China is maybe to overcome not enough welfare country and market competition. So we shall make The Third Sector function expressed fully, thus an effective government and effective market will be formed.