Effects of Government Contracting of Services on NGOs in China: Convergence and Divergence with International Experience

Abstract

The government of the Communist Party of China (CPC) rolled out a national policy to contract out social and welfare services to non-governmental organizations (NGOs) in 2013. This study explores how government contracting of services affects NGOs. We examine three areas: marketization, financial dependency, and autonomy. We find significant convergence of the effects of contracting on NGOs in China with NGOs’ experiences in liberal democratic countries, despite divergent political regimes. Found effects are explained by the combination of the authoritarian government of the CPC with the neoliberal governance structures introduced by contracting. Convergence with international experience despite divergent political regimes is attributed to the neoliberal essence of the policy of contracting of services.