Plight In The Supply Of Public Services, Public-private Partnerships In China And Countermeasures

With the rapid development of economy and society in China, people's needs of public services are also growing. But the government's financial predicament decides the limitations to meet these demands, then the contradiction between supply and demand is more and more outstanding. Therefore, the model of supplied by public-private partnership ("PPP" for short) is becoming the realistic choice to alleviate current contradiction.As an institutional arrangement which can play the advantages of both the government and the market, the PPP overcomes the disadvantages of traditional mode of supplied only by the government or only by the private sector. It's the limited market reform between the two, and aims to the equilibrium state both the government and the market play their respective advantages.In this paper, we analyze and elaborate in more detail the PPP models'development situation in our country, including the theoretical basis, realistic background, etc. On this basis, we focused on the difficulties and problems which faced by public-private partnership in China, and then brings-forward some countermeasures and suggestions on how to respond to further develop. The theoretical basis of PPP model includes the Public Choice Theory, Principal-Agent Theory, New Public Management Theory and the Governance Theory and so on. The realistic background includes the following:the people's demands for public services are growing; the limitations of government financial capacity; the private sector in our country has developed flourishingly. The current patterns of public services supplied by public-private partnership include government contracting, franchising, government participation, government financial aid, etc.This thesis analysis the difficulties and problems faced by the PPP model in China mainly from these four aspects, such as in and out, operation, effect and mechanism. On the in and out level, manifested as the coexistence of legal barriers, administrative barriers, financing barriers, exit barriers; At the operational level, the performance is the lack of professionals, operational agencies, government services and regulation, market competition mechanism and other related elements; In effect level, it reflects the existence of some of the damage the public interest, including the loss of state assets, the erosion of social equity, breeding of corruption and the lack of public accountability.For these problems in PPP's practice, we put forward five countermeasures and suggestions. They are as follows:formulation of operational laws and regulations; formulating relevant policies to implement the supply of public-private partnerships; to clarify the responsibilities of each party boundary of public and private cooperation in the supply; improving the government regulatory system of public-private partnerships; and standardized market cultivation, etc.