Analysis of the Government's Role in the Marketization of Public Service Based on European and Chinese Cases

Since the end of 1970s, China has started the market-oriented reform, meanwhile gradually introduces market mechanism in the public service area. To some extent, it works for improving public service deliver. However, there are still many debates on the market's function in the public service deliver, especially when some disadvantaged group loses access to basic service. On one hand, some experts mainly argues that the market mechanism can't function positively in public service supply, for market mechanism can't protect the Poor's interests; on the other hand, the others advocating free market mechanism is pro to the marketization of public service. It seems a dilemma for governments' policy makers. Based on European and Chinese cases, this paper argues, with macro-perspective, that it is necessary to make good use of the market mechanism in Chinese public service. Moreover, we have to assure that both government and market play the proper and effective role in public service marketization.