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SCOPSCR presentation

SCOPSCR presentation. September 2013. High level interest. Li Keqiang on July 31 chaired a State Council executive meeting to study the social forces that promote government procurement of public services and discuss improving the situation as follows

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SCOPSCR presentation

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  1. SCOPSCR presentation September 2013

  2. High level interest • Li Keqiang on July 31 chaired a State Council executive meeting to study the social forces that promote government procurement of public services and discuss improving the situation as follows • The deployment is to strengthen urban infrastructure; • It provides innovative ways for better public services; and • It is to the benefit of the masses. • It also deepens the reform of the social sphere to a significant measure, but also accelerates the development of service industry, and the service sector. • Building a more service-oriented government is inevitable. • This all moves toward opening up and guides effective social demand, but also promotes change of government functions, promoting effective politics, and separating government agencies from service provision.

  3. What does this all suggest in terms of reforms? • There must be reform of the laws/regulations for NPOs. • They must become proper vehicles for receipt of social services that are down-sized/outsourced into them. • There needs to be a real non-distribution rule for them in order to ensure no bleed over into the private sphere.

  4. How to accomplish this? • Write a new law? Not soon, but must happen within 5 years. • Amend regulations – by December 31, but will they include these issues? Probably not. • But the regulations should address more than registration.

  5. What should they say? • They should deal with self-dealing (by not permitting it). • They should also provide for fiduciary duties, such as integrity for board members, non-competition, etc. • Because there is no common law in civil law countries this must be written down, as in Germany’s “TreuhandGesetz.” • And the non-distribution constraint must be clarified.

  6. There is no substitute for culture • In common law countries there is a culture of fiduciary responsibility, which does not exist in civil law countries such as China. • It needs to be cultivated in China. • This is special problem for China and no outsider can give a pat solution.

  7. Outsourcing • As of now that NPOs to which social services can be outsourced: • Associations; minfei; foundations. • What types of mechanisms are being used? • Contracts, grants, vouchers. • When are some better than others? • Elder care in Shenzhen, for example.Why are market mechanisms better?

  8. Need for acceptance of outsourcing variety in China • Too much emphasis on contracts. • Need for flexibility and experimentation. • Why not try new things in various places? • As experiments in Shenzhen indicate, this works well.

  9. Amending regulations for NPOs Key to Change • While they are expected to be amended to provide direct registration for 4 types of NPOs, they are not likely to address the issues I mentioned. • But Li Liguo said in a recent and prescient speech that eventually corporate governance for NPOs must be addressed. • The Ministry is currently studying these issues in depth and has asked for research assistance.

  10. Research papers at this conference can help • This conference includes many important topics and should add to the discourse within China. • It includes not only local experience but draws on foreign experience. • These issues should receive attention by MoCAfor amending the regulations.

  11. 谢谢

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