The Role Analysis of the Third Sector in the Supply of Public Services - 中欧社会论坛 - China Europa Forum

The Role Analysis of the Third Sector in the Supply of Public Services

Wang Xiaoli

Southeast Academic Research, 2008, No. 4, pp. 121-126

1) The status and role of the third sector in the supply of public services

1. Status: (1) The boundaries of government and society– under the “law of trichotomy”, the inherent status of the third sector in the supply of public services; (2) The rise of the third sector– during the wave of government reform, the actual status of the third sector in the supply of public services; (3) The model for the supply of public services– in the “diversification” mode, the partnership status of the third sector in the supply of public services.

2. Role: (1) To downsize the scope of government, in order to improve the efficiency of public services; (2) To meet the diverse needs of the post-industrial society, in order to make up for the shortage of public services provided by government; (3) To coordinate the relationship between citizens and government, in order to increase the channels in which the citizens can express their demands for public services; (4) To correct market failures and government failures in the supply of public services.

2) The areas of public services that have the participation of non-profit organisations (Chen Xiaozhen, a master’s degree thesis of Xiamen University, The Study on the Participation of NPO in Public Service Supply, May 2009)

(1) The area of helping vulnerable groups in society; (2) The area of services where purchasers and recipients are separate; (3) The area of asymmetric information; (4) The area of complex and diverse social services.

3) The analysis on the current situation of non-profit organisations’ participation in the supply of public services

1. Overview on the practices of the third sector in the supply of public services in China. (1) To provide the community with a wide range of public services; (2) To participate in micromanagement, to improve the efficiency in the supply of public services, to meet the diverse needs of the community, to enhance the operational mechanism of the government and so forth; (3) To promote community integration and strengthen the residents’ awareness of political participation in the community. (Liu, Yingfei, a master’s thesis of Xiamen University, the model options of the third sector in the supply of public services, May 2007)

2. Problems of the third sector in the supply of public services in China. (1) Its role in the areas relating to the general public’s vital interests is limited; (2) In terms of its function, the third sector heavily relies on the government; (3) The government does not provide funding for the third sector, but entrusts them to provide services; (4) Most social services are still undertaken by the government. (Liu, Yingfei, a master’s thesis of Xiamen University, The Model Options of the Third Sector in the Supply of Public Services, May 2007)

3. “Duality” in the third sector in the supply of public services in China. In China, there are two types of the third sector: the “inner system” and the “external system”. (1) In the “inner system”, the NGO features in the supply of public services are as follows: a) it is incorporated into the overall plan of the supply of public services, and the third sector takes up the responsibility of providing services; b) it has relatively high degrees of social identity; c. resources are relatively secure, sustainable and stable; (2) In the “external system”, the NGO features in the supply of public services are as follows: a) popularity; b) extensity, flexibility; c) positivity; d) the fulfilment of diverse needs; e) the optimal allocation of resources and cost control; (3) The limitation of the third sector in the supply of public services in China: a. it is at the initial stage of development and has incomplete social functions; b) it has a large number of NGO in the inner system, and is not seen as a truly significant public service provider amongst people; c) the third sector has its own problems; d) public awareness is limited. (Guo Daojiu, Duality in The Third Sector in The Supply of Public Services and Its Development Orientation, Journal of Renmin University of China, February 2009)