Market-oriented Supply Of Public Goods

Public Goods, as one of the tools for public benefits of mankind, is an important way used to satisfy the public needs and realize the common benefits of the society. Government mechanism and market system are two kinds of institutional arrangements for allocating social resources effectively. In people's minds previously, the provision of Public Goods exists "Market Failure", just because of such characteristics of Public Goods as non-competitiveness, non-exclusive private. That is market system cannot allocate the public resources automatically thus be impossible to provide Public Goods effectively. Therefore, it is the bounden duty for a government to provide public goods ever since a nation and a government came into beings. However, a government is imperfect in practice. On one hand, the public goods provided by a government avoid "Free-riding"; on the other hand, it results in all kinds of new problems as non-sufficient supply of Public Goods, low efficiency of the government providing, shortage of governmental money, government rent-seeking and so on, which is so called "Government Failure". Facing with the citizen's growing demands for Public Goods, how to efficiently provide them is falling into the common objective for the governments of all countries.Beginning with the basic theories as the nature and classification of Public Goods, firstly, this Paper adopts the main ideas of Public Choice theory and The Liberalism Economists to analyses such questions as the issues resulted from government's monopolistic provision of public goods, the necessity, possibility, internal evidences and conditions of market-generalizing of public goods providing. Secondly, based on the above theoretical analysis, the Paper does empirical study on the new west Public Administration Movement's institutional arrangements, practicalforms and consequential results. Based on this, it analyzes the roles of a government in market by taking into the issues appeared in the marketed public goods. Finally, the Paper does analysis on the present issues of Public Goods provision in modern China. It focuses on the status quo of Public Goods provision, the reasons for non-sufficient provision. The Paper claims that it is a direct way to solve the Chinese problems of Public Goods provision by learning the experiences of the New Public Administration from west countries, decentralizing the authorities between government and market and making full use of market system. And also it discusses the relevant policies and measures of how to use market system to perfect the provision of public Goods in China.