Overview

China has more than one million public service units（PSUs), with a labor force of around 30 million. Most PSUs were created as public service providers. Non-state involvement in service delivery remains limited in China today. PSU performance is therefore crucial for improving service delivery in the public sector to a level commensurate with China’s stated goals of a “Xiaokang” society and “people centered” development. World Bank conducted a study on China’s PSU reform during 2002-2004. The study was designed to develop an overall strategy for PSU reform in China, drawing on systematic analysis of the current situation and critical assessment of international experience with public services reform.

This course is based on the main finding of the study and focuses on: the role of the government in services provision; review of the reform in China and a diagnostic analysis of existing problems of the existing system; finance, incentive mechanism and performance evaluation of service provision; international experience of service provision and reform. This course is intended to contribute to the development of a PSU reform strategy by 1) providing an alternative way of thinking that may help policy makers think through various issues involved in the development of PSU reform strategy; 2) recommending key guiding principles and direction of reform actions.