On The Cooperation Between Government And Industry Associations

Deepening the transformation of government functions requested the government to "transfer" or "commission" some trade management functions to industry associations in order to improve the efficiency of public services.According to the inherent characteristics of goods, government and industry associations shall play different role in providing trade management services. This paper proposed that government should be the natural provider of public goods of trade management functions, but which doesn't mean that government has to produce these public goods directly. There are several theories on institutional arrangements of public-goods'provision, and one of them suggests that building "public-private partnerships" between government and industry associations may be an good idea. In other words, government can buy services from industry associations through "Purchase of Service Contracting".Based on the analysis above and some practical experience in several provinces and cities of China, this paper proposed a framework of PPPs between government and industry associations, which including four process:project identifying, project purchasing, project implementation, and project evaluation. The fourth part of this paper analyzed the feasibility and shortage(e.g., human resource management,outlay,coverage, e.g.) of practicing the PPPs between government and associations through a case study of Hangzhou, and tried to give some suggestions on institution-building and supporting-guiding perspectives.