Study On The Reverse Marketization In Public Service

The findings reveal that the “reverse marketization” is becoming a new trend as marketization after the development peak in the 1990 s so that the public service marketization reform has entered a post- marketization era.For the past few years,some China’s cities has also emerged this phenomenon gradually.This diachronic investigation on the “reverse marketization” would contribute to the strategic positioning and concrete implementation of public service outsourcing policymaking for China’s government.Based on the investigation of D county sewage treatment plant "reverse outsourcing ", We found the transaction costs and incentive structure in the bureaucratic organization are the main reasons for the "reverse outsourcing ", and the incentive structure of government bureaucracy plays a more fundamental role.In some sense,marketization can save the internal production costs.However, it also contains extra transaction cost.If government can not create an effective system to lower the transaction cost,than it will be likely to choose “reverse outsourcing”.Nevertheless,government officials do not really concern with costs as private enterprises.Government officials’ behavior is based on the environment and the system they work. In other words,their behavior is influenced by the organizational performance incentive.In this case, from the microcosmic aspect, street-level government officials’ behavior is influenced by the organizational performance incentive;From the macroscopic aspect, the local government chooses to outsource or self-govern the sewage treatment plant,which are all influenced by the fiscal incentives.And transaction cost works should be based on this incentive system.All in all, the fiscal incentives is the key factor influencing on the “reverse marketization”.