Variations on Contracting Out Social Services in China’s Cities: The Case of Beijing, Shanghai and Guangzhou

Contracting out social services is China’s main welfare approach in recent years. This study compares the practices of commissioning social services in three China’s economically developed cities, including Beijing, Shanghai and Guangzhou. It was found that local government agencies, regional branches of national mass organizations, and lower level government agencies are commissioning non-government organizations to deliver welfare services. Moreover, Bejing and Shanghai use hub organizations to commission NGOs to launch small-scale projects, while Guangzhou uses open-biddings to contract its social services. Third, the contract period in Beijing and Shanghai is one year, which is limited by their annual financial year. On the other hand, the Guangzhou government offers three years contract to NGOs. It is suggested that multiple purchasers in a region need to coordinate their contracting activities in order to minimize wastes and avoid creating inequalities.