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By Yu Dong, Research Institute of Social Development, DRC

Research Report, Special Issue, No.13, 2018 (Total 1580) 2018-6-29

Abstract: The reform of public institutions in China has entered the stage of overall promotion. Some local governments have carried out pilot projects, and the main difficulty is how to reform Class B non-profit public institutions. In public institutions, there’s no clear definition between non-profit public institutions and for-profit public institutions, and such a particular will be there for a long time. Given the above-mentioned fact, the overall approach for the reform of Class B public institutions is that, under the precondition of equal financial resources, some Class B public institutions, which mainly provide grassroots public services, will be transformed into non-profit organizations, thus realizing the further reform of public institutions and contributing to the rapid development of non-profit organizations. Some policy options are made as follows. Based on the principle of corporate classification, the registration of legal person of Class B public institutions should be changed after the right relating to land, office building and capital is confirmed and the information is made known to the public. At the same time, we need to establish an effective incentive and restraint mechanism, a benchmarking personnel system and a salary system. We need to improve corporate governance structure, strengthen external supervision, and optimize the purchase of services.

Key words: reform of public institutions, Class B public institutions, non-profit institutions