For there exists such problems as hidden preferences, contract difficulties and the free-rider phenomenon, the market (private sector) does not have adequate incentives to provide public goods and services. Due to its distinctive properties, government provision of public goods has certain advantages over other approaches in terms of avoiding free-rider and externalities, but the monopolistic government supply of public goods would inevitably result in low productivity and efficiency. As a matter of fact, both the market and the third sector can effectively provide public goods to meet growing public needs for public services. The relevant theories and practice of public goods provision indicate that the principle of optimal resource allocation should be followed on the basis of the reality that government, market and society need to be further improved. Great attempts should be made to seek for a multi-channel coordinating mechanism on supply equilibrium between government, market and third sector to provide public goods and services more effectively so as to maximize public interests.
