Government And Non-governmental Organization Relationship

Purchase of Service Contracting (POSC), as a new governance tool, has been practiced in many countries worldwide. In today’s China, the emerging of POSC is on the one hand a strategy to reinvent government and promote social construction, and on the other hand a response of increasing public demand, lagged government reform and NGOs developing requirements. In recent years, there are many initiatives of POSC in the local government level in China. The government-NGO relationships demonstrated during those practices would not only influence the governance performance directly, but influence the institutionalization of POSC by shaping actors’ behaviors.Using agency and stewardship theories, this article examines government-NGO relationships during the POSC practices in China. A conceptual framework, which is testified by three contracting-out cases at the municipal and county level, is posited for understanding government-NGO relationships. This article argues that the nature of these interactions is best explained through the complex lens of the strategic institutional interests of both governments and NGO. rather than determined solely by initial assumption of NGO as stewards or opportunist. The government-NGO relationship evolves along with the process of institutionalization. Therefore, some institutionalization-promoting suggestions are provided to build a benign and positive government-NGO relationship.