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Keyong Dong · Na Wei
Transforming China’s
Public Services
A Plan for 2030
Transforming China’s Public Services
Keyong Dong • Na Wei
Transforming China’s
Public Services
A Plan for 2030
Keyong Dong Na Wei
Renmin University of China Renmin University of China
Beijing, China Beijing, China
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Singapore Pte Ltd. 2023
Jointly published with China Renmin University Press
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Preface
v
vi PREFACE
First, what are public services? Public services, in a narrow sense, are
primarily to meet basic livelihood needs in the areas of education, employ-
ment, social security, medical and health care, housing security, culture,
and sports. In a broader sense, the term also includes public services in
areas that are closely related to people’s living, including transportation,
communications, public facilities, and environmental protection, and
those in areas for safeguarding people’s security, including public security,
consumer security, and national defense security. As space is limited, the
book focuses on public services in a narrow sense for basic livelihood needs.
Second, can the market meet the needs for public services? In other
words, can the market ensure that everyone’s needs are met fairly and
efficiently? The answer is negative. For some products and services, espe-
cially public goods, the market is either unwilling or unable to provide it
effectively, which is the economically so-called market failure. In that case,
it should be the government that performs such functions.
Third, what are basic public services? Basic public services are led by the
government, secure the basic needs of all citizens for survival and develop-
ment, and are compatible with the current economic and social develop-
ment. Basic public service is a concept raised by China based on its national
conditions and development stage. It covers every stage of a citizen from
birth to death, and basic services in the areas of education, labor, employ-
ment and entrepreneurship, social insurance, medical and health care,
social services, housing, culture, and sports.
Fourth, what are the characteristics of basic public services? There are
three of them: basic, adaptive, and equal. Basic means that basic public
services meet basic livelihood needs; citizens have the right to receive basic
public services; and it is the government’s function to provide basic public
services. Adaptive means that the service quality of basic public services
should match social and economic development, not lagging or exceed-
ing. The means and methods of providing services should be compatible
with infrastructure construction and scientific and technological progress.
Equal means that most citizens can get equal access to basic public ser-
vices. Its core is to promote equal opportunities, and the focus is to ensure
the people’s access to basic public services, instead of the simple egalitari-
anism. It is a basic right of citizens to receive basic public services. It is a
crucial function of the government to ensure that everyone receives basic
public services.
Fifth, why are basic public services so important? From the characteris-
tics of basic public services, it can be seen that they are conducive to
PREFACE vii
The book was divided in parts for compilation. Specifically, Chap. 1 was
compiled by Li Wenzhao; Chap. 2 by Liu Peng; Chap. 3 by Zhou Guangli
and Liu Hailan; Chap. 4 by Ouyang Wei; Chap. 5 by Dong Pengtao;
Chap. 6 by Wei Na and Yang Yuefeng; Chap. 7 by Tang Jie and Yang
Shenghui; Chap. 8 by Wei Na, Liu Changqian, and Chen Xi.
We hope that the publication of this book will attract more attention
from experts, scholars, government officials, and the general public to this
issue. Hopefully, it will intensify people’s comprehension and understand-
ing of the modernization of basic public services, better build consensus
on this cause, and accelerate the pace of its realization.
1 Modernization
of Basic Public Services: Theoretical Logics
and Path Selection 1
2 Macro
Context for the Development of China’s Public
Services: Analysis and Prospects 23
References259
ix
List of Figures
xi
List of Tables
Table 1.1 Processes, principles, and actors in the public service system 9
Table 2.1 Standard normal unit of China’s WGI in 1996, 2002, 2007,
and 2012 31
Table 2.2 Rank term of China’s WGI in 1996, 2002, 2007, and 2012 31
Table 2.3 Characteristics of the WGI scores of some moderately
developed countries 32
Table 3.1 Fiscal education spending 45
Table 3.2 Public budgetary education spending and public funding per
student and their growth rate in 2012 46
Table 3.3 Regional education spending per student at all degrees in 2011 50
Table 3.4 Comparison of average education spending per student at all
degrees in 2011: Rural areas vs. overall 50
Table 3.5 Comparison of the lowest education spending per student at
all degrees in 2011: Rural areas vs. overall 51
Table 3.6 Pupil-to-teacher ratio at different education degrees in China
(the number of teachers = 1) 51
Table 3.7 Comparison of central and local education spending 53
Table 3.8 Education spending per student at all degrees in 2011 54
Table 3.9 Share of fiscal education spending in GDP in OECD
countries (2009) and China (2011) 58
Table 3.10 Education spending responsibility division among governments
at different levels in OECD countries in 2009 (%) 61
Table 3.11 Standards for the basic public education service system
(in 2020) 67
Table 3.12 Standards for the basic public education service system
(in 2030) 72
xiii
xiv List of Tables
1.1 Introduction
When developing the blueprint and selecting a path for the modernization
of China’s basic public services by 2030, we need to think about four basic
questions. First, where are we? It is mainly about the status quo of and
problems in the modernization of China’s basic public services. Second,
where are we going? The answer should describe the goal and the blue-
print for the modernization of China’s basic public services by 2020 and
2030. Third, what should we do? To be specific, in the course of achieving
the blueprint and the goal, how should we overcome difficulties and find
solutions? What is the priority in resource allocation? And how to find
action tactics? Fourth, why should we act this way? It concerns the theo-
retical logic, historical experience, international experience, and expert
judgment of the above actions, focusing on the question that why these
actions are effective and reasonable. The logical relation of these four
questions is shown in Fig. 1.1.
To answer these questions, we must first identify the nature of the
modernization of basic public services, especially from the perspective of
China in 2030. The importance of the modernization of basic public ser-
vices can be summarized in four aspects: politics, economy, society, and
state governance. The modernization of basic public services is conducive
to (1) enhancing legitimacy, (2) fundamentally implementing civil rights
уъॆ Professionalization
、ቲॆ Bureaucratization
ᐲॆ Urbanization
Ც㜭ॆ Intelligence
ॆޡޜ Publicization
⨶ᙗॆ Rationalization
means that basic public service organizations need to consider benefits and
costs. Professionalization means that basic public service organizations
need to consider the division of labor and efficiency. Bureaucratization is
the organizational basis for the above two features. It requires procedural-
ization, standardization, and impersonalization, and links everyone’s
remuneration with their ability. Urbanization means that basic public ser-
vice organizations need to consider space and scale. Intelligence means
that basic public service organizations need to consider scientific and tech-
nical issues and apply artificial intelligence as much as possible in address-
ing public service supply and production, for example, the revoluton
means Massive open online courses revolution (MOOC) revolution in
1 MODERNIZATION OF BASIC PUBLIC SERVICES: THEORETICAL LOGICS… 5
ཆ䜘⧟ຳ˄᭯⋫ǃ㓿⍾ǃ⽮Պǃ᮷ॆǃ⭏ᘱ઼ഭ䱵˅
・ޜ㓴㓷
External environment (political, economic, social, cultural,
Public organizations
ecological, and international)
᭯ᓌ ⿱・䶎㩕࡙㓴㓷
Government Private NGOs
・ޜ㩕࡙㓴㓷
ޡޜᴽ࣑ 㓴㓷⁑ᔿ
Public profit
Public services Organizational model
organizations
⿱・㩕࡙㓴㓷
≁ޜ
Private profit
Citizens
organizations
䇮䇑ࡉ ⋫⨶⨶ᘥ 䇮䇑ࡉ
Design principles Governance ideas Design principles
㔉䗷〻 ⭏ӗ䗷〻
Provision process Production process
⋫⨶䗷〻
Governance process
᭟᫁փ㌫˄ࡦᓖǃᢰᵟ઼᮷ॆ˅
Support systems (institutions, technology, and culture)
Fig. 1.3 A conceptual analysis framework for the modernization of basic public
services
1 MODERNIZATION OF BASIC PUBLIC SERVICES: THEORETICAL LOGICS… 7
local government. All these payments come from taxes, which means that
if a region needs more public services, taxpayers in the region have to pay
more in taxes. If a public service provided by a local government is paid by
the central government, it will lead to oversupply or undersupply. The
principle of democracy emphasizes that under the principle of fiscal equi-
librium, what kind of public services a region shall provide and to what
extent it shall provide them should be decided by the citizens in the region
through democratic procedures. Public service provision in the region
shall reflect the preferences and willingness to pay of citizens in the region.
The principle of democracy means that the local government should pro-
vide more choices in public service provision and ensure citizens have the
practical right to choose. The principle of social justice emphasizes that
the government, especially the central government, should provide some
basic public services that are conducive to ensuring the basic fairness and
justice and maintaining the basic stability and social equality. For these
basic public services, whether within the direct responsibility of the central
government or the joint responsibility of the central government and the
local government, they are all “hard constraints” and must be provided.
The principle of sustainability emphasizes that the provision of basic pub-
lic services should be sustainable and match the level of economic and
social development of the country or region. Over-providing public ser-
vices may lead to unsustainability.
Public service production should follow the principles of co-production,
efficiency, competition, and diversity. The principle of co-production was
summarized by Elinor Ostrom in the research on policing, which high-
lighted the importance of civic engagement to public security. The prin-
ciple requires citizens to participate in public service production and work
with police organizations to produce public security. Besides policing, citi-
zens’ conscious participation is crucial for better results in education,
medical care, and aged care. The principle of efficiency was advocated by
Herbert Simon in organizational studies. Efficiency means to get the most
at the lowest cost or, specifically, to maximize the benefit at a given cost or
to minimize the cost for a given benefit. The principle of efficiency requires
public service organizations to act at the maximum efficiency and find the
most efficient way to provide public services. The principle of competition
is advocated mostly by economists. They regard competition as a process
of discovery, which can achieve the optimal allocation of resources. The
New Public Management theory introduced the principle of competition
into the public domain, emphasizing that competition between public
8 K. DONG AND N. WEI