Revolutionizing Social Service Delivery in China: The New Policy of 'Contracting Out' to Non-Profit Organizations

Abstract

This paper first examines the political economy of service delivery in China, and finds that the new policy of social service outsourcing (SSO) to non-profit organizations (NPOs) was motivated by the failure of the geographical family-based model of service provision adopted after the work-unit model was dismantled. This failure necessitated social innovation on the part of local officials responsible for service delivery to achieve a ‘well off’ (xiao kang 小康) society and better ‘social management’ (shehui guanli 社会管理) of NPOs emerging in China. These two goals are reflected in the national-level ‘small government big society’ governance reforms (xiao zhengfu da shehui 小政府大社会) and the proposed changes for charities in the 12th Five Year Plan encouraging the practice of contracting the provision of public services to civil society organizations (CSOs).

Keywords: social service, outsourcing, supply side, demand side, incentives, funding