The Research On The Lack Of The Government Responsibility After Public Serveic Contracting Out

Public service contracting out has been one of the most importantinstitutional arrangements in the wave of reinventing government inwestern countries. It has advantages to improve the public service qualityand efficiency, to decrease production cost, and to help the transformationof government in public service.With the development of society and economic， our countrygovernment faces the conflicts between the growing demand of citizensfor the more diversification, specialization and refinement public serviceand the fact that the low efficiency and high cost in the production ofpublic service by government. Local government in China has activelyexplore the innovative ways of public service, in order to realize thechange of government function and meet the growing demand for publicservice policy goals. The results of local government’s practice andexploration has attracted the great attention of the Party Central Committee and the state council, the public service contract out started asa national level policy to promote the change of government function andbecome an important way to push forward the reform of governmentinstitutions.The fact cannot be ignored is that the “outsourcing failure” couldhappen in the public service contracting out, which lead to the damage forpublic interests, private monopoly and the decrease of the quality ofpublic service, and so on and so forth. The role of government in publicservice contracting out would turn into contract managers, supervisors,and assessor. And the absence of the government’s responsibility is theroot cause of the “outsourcing failure”, including the absence of thegovernment’s management responsibility, supervision responsibility andwarranty responsibility in the management of contract.My paper will base on the principal-agent theory analysis the role ofgovernment in public service outsourcing contract, the responsibility ofgovernment, and the relationship between government, citizens and thecontractor, which combined with case of Shenzhen that reveals thevarious reasons in government responsibility missing from two aspectsincluding theory and practice. The reasons include objective reasons suchas the lack of institutional supply, supervision mechanism and evaluationmechanism, and the subjective reasons such as public official are lack ofcontract management consciousness and ability or government officials’ self-interest behavior as a rational economic person and so on. In the endof paper, under the experience of western countries (including the UnitedStates, Britain, Germany), the article will clear the role and responsibilityof government in the principal-agent relationship between citizens,government and contractor to suggest the path of perfecting thegovernment responsibility in order to avoid the government responsibilitymissing result in the issues that led to the "outsourcing failure" from twoaspects of theory and practice to reference.