Contractual Governance:Performance Of Outsourcing Government-Financed Services

With the rise of the new public management movement,a lot of countries has accelerated the reform of government pattern,in order to speed up the transformation of government functions,enhance the administrative efficiency and lower the the administrative cost.China has positively promoted outsourcing government-financed services to adapt to the innovation of social governance system and settle the contradiction of demand and supply in social service and the problem of inefficiency.In principle,the government needs to bring competition into outsourcing government-financed services.Then,the government purchases some social services from civil society organizations by contracts or authorization.The essence of outsourcing government-financed services is to provide social services by contracts and the contract is the voucher of the implementation of government purchasing services.Therefore,the research will analyze the experience of local government's purchasing social services under the contractual governance.The usage of contractual governance demonstrates the innovation in the management of social services.With its good social effect and economic advantages,the contract model could remedy limitations of tradition social services supply,such as inefficiency and limited resource.However,when we enjoyed the benefits of outsourcing services under the contractual governance,we also have to face the ensuing risks.The two parties of the outsourcing provide both rights and obligations by contracts,but the limited rationality,the uncertainty of external environment,asymmetric information and other factors make the contract incomplete.The incomplete outsourcing contracts tends the employer to face the risk of increasing transaction costs,moral hazard and adverse selection.Thus,in the context of contractual governance,how to prevent the service outsourcing risk and improve government-financed services are practical significant.It has practical significance both in theory research and practice in performance of government-financed services under the view of contractual governance.During the process in protection public and improvement the supply of social services,the production of this essay also could be the guidance for public sections to use contractual governance in management practice rationally,rightfully and effectively.To achieve the purpose of avoiding negative impacts and reducing contractual risks.Based on the twenty-five examples of government-financed services in Z city,this research is about to summarize some meaningful experiences through case analysis,panel and questionnaire method.First,we will sum up the effects on government-financed services under the theoretical study of contractual governance.Second,in the context of incomplete contract,the essay will analyze reasons of the generation of incomplete contracts and risks.Then,we will focus on those examples and provide some countermeasure to solve contractual risks.Through the selection of information and field research,we could get some data resources from interview and questionnaire.The problems existing in those examples and its reasons would be exposed and analyzed.Finally,to improve government-financed services,the research will give some advise combining contractual governance theory.