Study Of Problems In China’s Outsourcing Of Public Services And Solutions

Outsourcing of public service which arose in Britain and the United States and other western countries, is a welcomed system arrangement in the public service marketization reform. By outsourcing contract, the governmental production of the public service is entrusted to the private sector or non-profit organizations,to control the size of government,reduce public spending,improve the efficiency and quality of public services.After the reform and opening up, great changes took place in China’s economic and social,and the government monopoly model was unable to meet the people’s diverse and advanced needs for public services. For the global wave of reform and domestic economic and social transformation, Outsourcing of public service was introduced into China,and got the local government to follow and promotion soon.In recent years,china’s outsourcing of public service has achieved preliminary results,but also exposed some problems in practice. In order to make the outsourcing mechanism to provide greater utility in public services, reflecting on these problems and putting forward the corresponding countermeasures, is very important in the further development of the outsourcing of public service.Many domestic scholars studied this problem,but their studies are mostly based on the analysis of a specific case.So it is very important to explore the problems in the nationwide outsourcing of public service and coping strategies.This article attempts to make efforts in this regard.Overall, the paper main body part is focused on "what, why, how, how do" these four issues to unfolded. First, introduce the concept,field and operational processes of the outsourcing of public service. Secondly,describe the arisen background and Current situation of China’s contracting for public service. Third, combining the market failure theory,principal-agent theory and transaction costs theory with the practice of local government,starting from the operation process of the outsourcing, explore the problems existing in the decision-making,implementation and evaluation stage of China’s contracting for public service with dynamic perspective.These problems include excessive outsourcing of public services,inaccurate contract pricing,lack of market competition,lack of government regulation,imperfect assessment mechanism etc. Finally,for these problems,present that optimize the macro-operation conditions for outsourcing of public services by improving laws and regulations,improving government management capacity and promoting market competition,and sound the micro-operation mechanism for outsourcing of public services through standardizing the outsourcing contract design,conducting an open and transparent contract bidding,implementing effective supervision and management and establishing a scientific evaluation of incentive mechanism,to promote the sustainable development of China’s outsourcing of public service.