Title:
THE OPTIMIZATION OF PUBLIC SERVICE SUPPLY FROM THE PERSPECTIVE OF MULTIPLE OBJECTS AND ANALYSIS ON THE MECHANISM AND EFFECTS OF PPP INNOVATION

Authors:
Jia Kang, Ou Chunzhi *, China

Abstract:

The efficiency that the optimization of public service supply aims to improve refers to comprehensive performance, which is different from the single efficiency or direct efficiency of managerialism. Often at the expense of publicity, efficiency is given priority and primacy. This behavior is acceptable in business, but not in public affairs. PPP innovation involves governance challenges related to how to keep the government’s public value orientation and appropriate scale. For the “multi-subject” innovation that uses PPP as the institutional supply, it is necessary to clarify and deepen the theoretical understanding of why PPP is necessary and how to realize its standardized development in the face of challenges.  Currently, financing function of PPP has attracted the attention of the academic circle and been particularly popular in the reform and development practice of local governments. However, how to understand, explain and use its “management function” correctly to ensure the public goal, optimize the public service and improve the efficiency of public service supply (comprehensive performance) is the key that we need to think deeply about. Based on the analysis of the positioning of efficiency and publicity and the mathematical theory that government exclusively cannot achieve the best public service, this paper conducts original theoretical analysis and demonstration that the introduction of PPP can reduce the costs of public service supply and improve the performance. It demonstrates that the introduction of social capital to participate in the public service supply can optimize the results of the trade-off and combination between the direct efficiency and comprehensive public targets. It investigates and analyzes further the effects and mechanisms of PPP innovation, and puts forward comments and suggestions.