China to reform gov't-run public institutions to improve public services (2)

08:47, April 15, 2011      

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China, whose public service sector faces a widening gap between its unsatisfactory supply and an increasing demand, needs to improve the overall amount and efficiency level of public services by reforming government-run institutions, analysts say.

Wu said the reform reflects the government's resolution to address public complaint over a lack of access to public services, "like in fields of education and health care."

The general goal of the reform is to establish a system by the end of 2020, under which non-profit institutions will effectively operate to provide public services that people have equal access to, according to experts.

In the next five years, China plans to complete its transformation of public institutions that perform administrative functions into government agencies, while those conducting for-profit, commercial activities will be transformed into enterprises.

Government-run public institutions left after the restructuring will focus on providing public services in a wholly non-profit way. Meanwhile, the government will improve its oversight of these institutions.

For a long time, individuals recruited by public institutions usually have a "steel bowl." They can receive a regular salary and work at the institutions until their retirement, regardless of performance.

It will be a wholly different scenario after the reform.

"The staff members of public institutions will have no 'steel bowl' in the future, and their salaries will be determined according to their work results," Wu said.
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