From Wikipedia, the free encyclopedia
Chinese system of outsourcing public services
In the
People's Republic of China
, the
Chengbao system
(
Chinese
:
承包
;
pinyin
:
Chengb?o
) refers to the private or
individual
contracted operation of
public
assets such as
bus
lines,
hospitals
, and
schools
. These operators pay a fee as well as a percentage of
profit
generated to the state. It is regarded as a form of
intrapreneurship
.
History
[
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]
The Chengbao system was first introduced during the
land reform
in China. In order to get around Maoist-era laws prohibiting land ownership, land was "cheng b?o" or contracted to the public, such as to individual peasants by the state. The system was quickly expanded to include many other assets. Today in China, many public assets and public service companies such as hospitals, schools and even auto companies are contracted out to private operators who operate it with a
profit motive
in mind but return operating expenses and profit to the government. This has the advantage of creating extra value to the contractor, generates funding for the state and public, and improves services for the consumer.
Recently, "Chengbao" or contracting services has also been expanded to the private sector, where large privately owned enterprises allow individuals who aren't employees of the firm operate their assets.
[1]
See also
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References
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