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GuidingOpinionsonPublicServiceReforminPudong（ResearchProjectReport）BytheProjectTeam2IntroductionAsthereformprogramofChinamakesconsistentprogress,ithasbecomeacommonsensethatgovernmentreformwillbethefocalissueinthenextphaseofreform.Animportanttaskingovernmentreformistoeffectivelytransformthegovernment’sfunctions,andmostnotablytoincreasethequalityandefficiencyofpublicserviceprovision.Inthissense,itisanimportantandurgentstrategictasktoestablishasoundpublicservicesystemthatmeetstherequirementsofmarketeconomy.Onthe96thExecutiveSessiononJune21,2006,theStateCouncilapprovedthepilotinitiativeofsystematicadministrativereforminPudongNewArea,andthemajorobjectivesoftheinitiativeincludetransformingthegovernment’sfunctionseffectivelyand,inparticular,deepeningtheadministrativesystemreform.Theinitiativetotransformgovernmentfunctionsanddeepentheadministrativesystemreformiscloselyconnectedwiththeimperativetobuildapublicservicesystemthatiscompatiblewiththemarketeconomysystemandtodeepenpublicservicereform.ThepilotreformprograminPudongwillmakeaprofoundanalysisofissuesconcerningpublicservicereform,developguidingopinions,andthereforegenerateusefulexperienceforfurthereffortstodeepentheadministrativesystemreforminthecountry.I.DefinitionsofPublicServiceandPublicServiceAgenciesPublicserviceisatermwithspecialconnotations,andmeansthedutiesassumedandperformedbylegallyauthorizedgovernmentalornon-governmentalpublicorganizationsandarelatedcorporationsintheproductionandprovisionofpure3publicgoods,mixedpublicgoodsandspecialprivategoods.Intheusualsense,publicservicesincludebasicservices(publicutilitiesandinfrastructurefacilities),economicservices(institutionalprovision,macro-control,informationrelease,regulationandsupervision),socialservices(socialsecurity,education,scienceandtechnology,culture,healthcare,sportsandenvironment),andpublic-securityservices(nationaldefense,policeandfirecontrol).Publicserviceagencies(PSAs),ontheotherhand,canbedefinedasorganizationsthatproduceandprovidegoodsandserviceswiththecharacteristicsofpublicservices.Inthebroadsense,PSAsmayincludegovernmentdepartments.ForthepurposeofthepresentGuidingOpinions,PSAsshallreferspecificallytoorganizations,otherthangovernmentdepartments,thatproduceanddistributegoodsandserviceswiththecharacteristicsofpublicservices.InChina,PSAsarelargelypara-governmentalorganizations(PGOs)withChinesecharacteristics.PGOsareoneofthefourmaintypesoflegalpersonsasdefinedbytheGeneralPrinciplesoftheCivilLawofthePeople'sRepublicofChina(enterprises,governmentagencies,PGOsandNGOs).AccordingtotheInterimRegulationsconcerningtheRegistrationandManagementofPGOsofChina,PGOsrefertosocialserviceorganizationsestablished,forthesakeofpublicinterest,bygovernmentdepartmentsorotherorganizationsutilizingstate-ownedassetstoconductactivitiesinthefieldsofeducation,scienceandtechnology,culture,healthcare,socialwelfare,andurbanpublicutilities.AsthemarketizationprocessoftheChineseeconomicsystemcontinues,therehaveemergednon-governmentalandnon-state-ownedPSAsprovidingcertainpublic4services,suchasintheeducationandhealthcaresector.Non-governmentalorganizations(NGOs),private-ownednon-enterpriseorganizationsandfundsdefinedintheRegulationsconcerningtheRegistrationandManagementofNGOs,theRegulationsconcerningtheRegistrationandManagementofPrivate-ownedNon-enterpriseOrganizations,andtheRegulationsconcerningtheManagementofFundspromulgatedbytheStateCouncilmayalsobePSAs,astheyareengagedintheprovisionofnon-profitsocialservices.AtthecurrentmomentinChina,PSAisatermwithoutdefiniteconnotationsoraclearlycutscope,andthereisnotyetawell-definedandwell-regulatedtypeofresponsibleconductentities.Therefore,forthepurposeofthepresentGuidingOpinions,PublicServiceReformshallmeanbyfarandlargethereformofPGOs,andinvolveatthesametimetheinstitutionaldevelopmentofnon-profitNGOswithpublicservicefunctions.II.CurrentSituationofPGOsandPGOReforminPudong1.MainCharacteristicsofPGOsInthemanagementmodelof“SmallGovernment,BigCommunity”practicedinPudongNewArea,PGOsshowthefollowingcharacteristics:A.ACompletePublicServiceSystemandaLargeSizeBytheendof2005,PudongNewAreahad555PGOswithatotalplannedorganizationalsizeof36,039membersofwhich33,771membersareinactiveservice.Thereare320PGOsareengagedintheeducationandhealthcaresector,andwith24,356plannedstaffmembers(22,830inactiveservice),theyrepresenting72.1%ofthetotalplannedstaffofallPGOsunderPudongNewArea.Thereare235PGOsof5othertypes(besidesthoseintheeducationandhealthcaresector,or“otherPGOs”),withacombinedorganizationalsizeof11,683members(10,941membersinactualservice),accountingfor27.9%ofthetotalplannedorganizationalsizeofallPGOsunderPudongNewArea.B.AHighPercentageofGovernmentFinanceJustlikeinotherregionsofthecountry,thegovernmentofPudongNewAreaassumesfullresponsibilityforthesetupofPGOs,decidesthecontentandlevelofpublicservicedevelopment,andprovidesallnecessaryinvestment.Atthemoment,amongall“otherPGOs”thanthoseintheeducationandhealthcaresectorinPudongNewArea,thereare173government-financedorganizationswithacombinedstaffsizeof6,131members,ac