China considers reform of public institutions

0 Comment(s)Print E-mail Xinhua, April 16, 2012
Adjust font size:

China is striving to make its public institutions more "public-welfare oriented" and reduce the country's financial burden by transforming some of them into businesses, according to a circular issued on Monday.

Similar to government departments but contrary to private businesses, public institutions in China are financed by the national budget and do not have earnings. They cover sectors such as education, science, culture, health, agriculture, forestry, water conservation and media sectors.

As the number of workers in public institutions is far greater than the number of civil servants, it's becoming increasingly challenging for the central government to finance such a huge group.

Moreover, the development of public institutions lags far behind social development, with ambiguous functions in some of them, according to the circular that contains guidelines from the Communist Party of China Central Committee and the State Council.

According to the circular, an efficient, clearly-defined and regulated mechanism for public institutions will be established by 2020.

It noted that public institutions are "the main part of economic and social development that provide social services" and "an important force of the socialist modernization drive." The reform aims to enable public institutions to offer more quality social services.

Public institutions with administrative roles should be turned or merged into government departments. Those have business operations will be gradually transformed into enterprises. Those providing social services will retain their status as public institutions, with the public-welfare nature to be strengthened, according to the circular which outlines a reform plan.

Efforts should be made to conduct assets inspections, financial auditing, capital rating and debt verification before transforming public institutions, the circular said, adding that national assets must be registered.

Labor contracts and social insurance of public institution staff should also be changed accordingly, with retired employees retaining their original status, the circular went on to say.

A transitional period will last about five years for each public institution to ensure smooth switch, it said.

The circular stressed the public institutions' role as social services providers, saying that efforts should be made to promote equalized social services between rural and urban areas and among different regions.

Meanwhile, enterprises, social organizations and individuals are encouraged to donate for social services, and "voluntary services should be greatly promoted," the circular said.

Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from