From 2006 to 2010, Horizon Research Consultancy Group has released the “Report on Index of Public Assessment on Chinese Public Service" annually, continuously tracing the development of Chinese public services over these five years: The Chinese public feels Chinese public services are developing stably although they confront new pressures their livelihoods; the PAPS index of 2010 reached 67.8 points (hundred-mark system), a modest increase over 2009.

1. Facing New Pressures from People’s
Livelihoods, Public Services Remains Stable
Review on Public Assessment of Public Services in the 11th Five-Year Plan Period
JAN.2011

2. Features and Social Significance of Research
 Evaluated by people: Public services are  To the public: To expand channels for
evaluated by citizens that use them; the public to express their demands for
public services and to increase public
 Evaluated subjectively: The assessment
involvement in decision-making on
is based on the premise that the public
public service policies.
service satisfaction can be quantified;
 To government authorities: To
 Evaluated continuously: The study is
provide reference for authorities in
continuous and will be adjusted with
terms of service delivery, products, and
newest development of public services, so
strategies for promoting efficiency and
as to establish a scientific public service
quality of public service;
assessment system.
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3. Study Methods
Establishment of Establishment of Index
the index system weighting system measuring
 15 cities including Beijing, Shanghai, Guangzhou, Wuhan, Chengdu, Shenyang, Xi’an, Qingdao,
Cities Tangshan, Changsha, Zhengzhou, Shenzhen, Kunming, Harbin, and Lanzhou;
 7 small towns including Zhuji in Shaoxing of Zhejiang, Changle in Fuzhou of Fujian, Dengta in
Liaoyang of Liaoning, Xinji in Shijiazhuang of Hebei, Linxiang in Yueyang of Hunan, Pengzhou in
Small towns
Chengdu of Sichuan, and Xingping in Xianyang of Shan’xi;
 Chose administrative villages from Zhuji in Shaoxing of Zhejiang, Changle in Fuzhou of Fujian,
Dengta in Liaoyang of Liaoning, Xinji in Shijiazhuang of Hebei, Linxiang in Yueyang of Hunan,
Rural areas
Pengzhou in Chengdu of Sichuan, and Xingping in Xianyang of Shan’xi; and choose 2 natural
villages from each administrative village for survey.
Sample size  4,783 effective samples;
 The results have been weighted according to local population scale, and the sampling error of this
Data processing survey is 0.84% in a 95% confidence interval.
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4. Introduction to Horizon Public Service Index System and Weighting
Public Public Public Medical Social
Education Employment Environment Agriculture
security transit utilities & health security
Primary and Agricultural
Electricity Medical service secondary Employment Environmental
Public order Road conditions Social insurance production inputs
education information service hygiene
services
Tap water Employment training Environmental Agrotechnology
Food and drug safety Public transportation Public health Social welfare protection
Social assistance Employment
Taxi service Residential gas
opportunity
Postal service Services for
Entrepreneurs
Cultural, sports &
entertainment
services
Urban
weighting 0.15 0.13 0.14 0.14 0.12 0.11 0.11 0.09
Rural
weighting 0.10 0.08 0.14 0.15 0.11 0.13 0.09 0.07 0.15
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5. What does the Horizon index for public assessment of
public service mean?
Satisfaction
·Satisfaction represents the degree of match
100 High points：services
between the service experience and user provided by public
expectations. When the expectations are lower points departments match and
than the service experience, they will feel satisfied. satisfy the public’s
Otherwise, they will feel dissatisfaction. demands.
The study of satisfaction focuses on the matching
degree and personal feeling of service user, hence:
·Satisfaction measures points given by service
objects in terms of their perception.
·Factors influencing the satisfaction are the quality Low points：services
perceived by service users and their expectations provided by public
departments neither match
before accepting the service;
nor satisfy the public’s
·Different service users may show different levels 0 demands.
satisfaction in different service processes or under points
different environments.
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6. Main findings from 2010 Index and 11th Five-Year Plan period.
1. The three driving forces improving the overall level of public services in the 11th Five-Year Plan
period are social security, public utilities, and environmental hygiene governance;
2. Although gaps between urban and rural areas have narrowed, employment, social security and
medical care still remain weak in rural areas;
3. Polarization exists in different groups in cities and towns, mainly in employment and social security;
4. The price of public service products consistently generates public concern, and the key issue is
pricing transparency;
5. The development idea and reform concept are the prime driving forces improving public service,
demonstrated by medical care, environmental hygiene governance, and transportation;
6. Investments based on conceptual shifts also drove improvement of public services, demonstrated
by social security;
7. Confronted with pressure from people’s livelihood, public service entered a period of high demand;
8. New trends of public service demand should be probed to find out new growth recognized by the
public.
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7. 1. Public services developed stably in the 11th Five-year Plan; social security,
public utilities, and environmental hygiene governance were the driving
forces
Index points of 2006-2010 PAPS:
2006 2007 2008 2009 2010
67.9 67.8
65.2 66.4
63.2
Figure: Comparing primary indices for Chinese public service from 2006-2010
Public security Public transit Public utilities
Medical & health Social security Elementary education
Employment service Environmental hygiene governance Agricultural production service
80
71.3
76.9
72.2
73.5
70
67.0 69.5
70.9
66.7
63.6 64.2
60
61.2 58.7
55.4 57.2
50
43.9
40
2006 2007 2008 2009 2010
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8. 2. The urban-rural gap has narrowed, but employment, social security,
and medical care remain weak in rural areas.
Figure: comparing secondary indices of public services
in rural and urban areas in 2010
Food & drug safety Areas of advantages 4.4
Residential gas 1.6
Electricity 0.2
Environmental hygiene -0.1
Road condition Balanced areas -0.7
Figure: Comparing public service indices Primary and secondary education -1.0
in urban and rural areas from 2006 to Tap water -1.3
2010 (points) Postal service -1.3
Public health -1.4
80
Environmental protection -2.5
Medical service -3.1
69.0 70.0 69.1
67.5 Social welfare
70 69.5 -3.4
66.8 Entrepreneur service -3.6
66.7 Areas of
64.8 Public order -4.1
60 63.0 disadvantages
60.7 Cities and towns Social assistance -5.8
Rural areas Employment opportunity -6.2
50 Social insurance -6.9
2006 2007 2008 2009 2010 Culture, sports & entertainment service -8.3
Employment training -12.5
Employment information service -14.8
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9. 3.1. Polarization emerged in different groups in urban areas, mainly in
employment and social security.
Figure: Comparing public service indices among different Figure: Comparing assessments of employment
occupational groups in urban areas from 2007 to 2010 service among different occupational groups in
urban areas in 2010
People working with gov ernment and non-corporate institutions
Employment information service Employment training
White-collars and f reelancers
75 Employment opportunity Entrepreneur service
Self -employ ed
61.6 62.8
Blue-collars and workers 65 60.1 59.3
57.7
75.0 55.3
Laid-of f 59.9 55.4
59.7 59.2 60.0
School students
55 51.0 55.7
46.1 48.8
52.2 50.7
44.6
70.0 45 46.9
44.3 44.8 37.7
41.7 43.6
35
65.0 White-collars Blue-collars Self - Laid-of f School People
and and workers employ ed students working with
f reelancers gov ernment
and non-
60.0
corporate
2007 2008 2009 2010
institutions
Figure: Comparing primary indices in urban areas in 2010 Figure: Comparing assessments of social security service
among different occupational groups in urban areas in 2010
100
78.7 77.6 73.3 73.2 Social insurance Social w elfare Social assistance
80 71.6
64.6
Env ironmental hygiene gov ernance
61.8
53.7 75
60
65
40
55
20
45
Elementa ry education
0
Employment service
Pub lic utilities
Medical & health
Pub lic transit
35
Pub lic safety
Soc ial security
People White-collars Blue-collars Self- Laid-off School
working with and and workers employed students
government freelancers
and non-
corporate
institutions - 8-

10. 3.2. Pressure on people’s livelihoods and the new economic
environment posed big challenges to employment services.
Figure: Comparing employment opportunity ratings during Figure: Assessment of employment opportunity by
2006-2010 urban residents at different level of education
Global economic
60 crisis 60
50.2 53.1
44.9 46.5 44.0 46.7 51.8
50 47.2
40
40
20
30
0 Urban people with Urban people with Urban people with
2006 2007 2008 2009 2010 a low level of a medium level of a high level of
education education education
Figure: Ratios of occupational groups in urban areas who have never thought about
entrepreneurship and their assessment of employment services
100 Haven't thought about entrepreneurship Assessment tow ards entrepreneur service 50%
44.8 44.3
46.9
80 71.2 70.9 67.3 45%
43.6 56.2
60 41.7 54.3 40%
37.7
40 28.7 35%
20 30%
0 25%
People w orking w ith Laid-off School students Blue-collars and White-collars and Self-employed
government and non- w orkers freelancers
corporate institutions - 9-

11. 4. Public service prices remained a top concern, and the key issue is
pricing transparency.
Figure: Contrast of pricing rationality of different public products or services
4.5
Controlled by Jointly controlled by Controlled by
4.0 market market and government government
3.5
3.0
Cities Small towns Rural
2.5
Theater/music Cinema Taxi Fuel gas Water Electricity Bus Science and Library Park ElementaryMedical care
hall Technology education
Figure: Pricing rationality of different public products or services Figure: Percentage reporting local hearings
from 2006 to 2010 on tap water and electricity pricing
Taxi Fuel gas 10
Water Electricity
4.5 Bus Science and Technology Museum
7.9 2009 2010
Library Park
Elementary education Medical care
8
4.0
6
3.5
4 3.0 3.2
3.0 3.0
1.8 1.6 1.9
2.5 2
1.0
2.0 0
2006 2007 2008 2009 2010 Cities Small towns Rural Overall
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12. 5.1. Shifting concepts was the driving force for improving public service:
medical care.
Figure: Comparing indices of basic medical care We should adhere to the tenet of serving the people’s health with health care
service from 2006 to 2010 undertakings; regard safeguarding the people’s health as the center, and take the
100 entitlement of basic health care services to everyone as the fundamental aim and
outcome; make sure that the principle of commonweal nature be complied with
80 66.2 69.2 69.0 68.8 throughout the entire process, from designing the reform program and
65.9
establishing the health system to constructing the health care service system;
60
ensure that the basic health care system be a public good provided to the entire
40 population; emphatically resolve the prominent problems to which people strongly
react, and strive to achieve the goal of ensuring that health care services be
20 available to the entire population.
--Opinions of the CPC Central Committee and the State Council on Deepening
0 the Health Care System Reform in April 2009
2006 2007 2008 2009 2010
Figure: Feelings of urban and rural residents toward change in
Figure: Comparing’ assessments of specific items of medical fee burdens after implementation of new
medical care service from 2008 to 2010 medical care reform program
78.3
79.4
2008 2009 2010 Small
76.5
Cities Rural Overall
75.6
75.3
75.3
74.9
80 towns
74.3
73.9
71.4
71.5
70.5
70.3
75
69.4
68.9
Greatly increased 9.0 0.2 0.2 2.4
70
63.1
Somewhat increased 11.4 4.9 3.2 5.6
61.2
61.3
60.9
60.5
65
59.3
60 No change 46.8 57.1 43.5 47.2
55 Somewhat decreased 29.1 33.9 48.9 40.9
medical skills
Convenience
Medical care
medical ethics
Transparency
environment
Rationality of
medical staff
of charging
attitude of
charging
of see a
Service
Level of
Level of
Greatly decreased 0.4 1.6 1.4 1.2
doctor
Source: Survey on Living Quality of Chinese Residents in 2010 by Horizon Research
Consultancy Group (Horizon Research
- 11 -

13. 5.2. Shifting concepts was the driving force for improving public service:
control of environmental hygiene.
Figure: Comparing ratings of environmental Figure: What is the first priority for China,
hygiene governance economic development or environment protection?
Priorrity should be adsolutely laid on
economic development
5.8
100 Economy first :
22.9%
Both environment and economy are
80
69.5 70.9 important, but with economy as priority.
17.1
63.6 64.2 66.7
60
Both environment and economy are
important, but with environment as priority.
43.3
40
Environment first :
29.973.2%
Priority should be laid on environmental
20 protection absolutely
0
2006 2007 2008 2009 2010年 Refused/not clear 3.8
0% 20% 40% 60%
Economic development: shifting from an extensive mode based on resources to a new one based on technological innovation.
Investment: RMB 1,400 billion was invested in environmental protection in the 11th Five-Year Plan. It will be doubled in the 12th Five-
Year Plan, reaching to RMB 3,100 billion with energy saving and environment protection industry listed first among the
“seven gold flowers” of top rising industries. –Mail Business Newspaper
- 12 -

14. 5.3. Public service needs long-term planning—demonstrated by bus
service.
Figure: comparing transportation modes of residents Figure: Change in quantity of motor vehicles in Beijing
in cities and small towns
Stimulati Controlling
12.7 ng auto traffic jam by
Walk policies
21.8 (10 k) Public market
500.0 476.0
transit first
28.1 400.1
Bicycle/electric bycicle
52.8 400.0 350.4
312.8
287.6
47.4 300.0 258.3
Bus/metro/coach 212.4 229.6
12.2 169.9 176.5
200.0
3.2 Cities
Private car 100.0
1.8 Small tow ns
0.0
0% 20% 40% 60% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Note: It is multi-chose, with the total adds up over 100%
Figure: Satisfaction of urban and rural residents with Figure: Development of China’s public transportation
road traffic from 2006 to 2010 (points) by time period
Cities Small tow ns Rural Quantity of existing public buses (10k) Taxi quantity (10k)
80 Passenger carrying capacity (100 million trips)
78.1
75.6 93.0 96.0
75 77.1 100.0 600
88.0
71.4 75.0 555 500
69.3 80.0
70 466 400
67.4 70.3 60.0
65.2 280 372
65.9 64.7 250 300
65 67.2 40.0 31.3
28.0 24.6 34.5 200
63.5 59.4 20.0 9.0 100
60 62.2
4.5 2.0
0.0 0
55 Before 1985 1985-1992 1992-2002 2002-2006 2007
2006 2007 2008 2009 2010
Source: National Bureau of Statistics
- 13 -

15. 6.1 Investment based on concept shift was driving force to improve
public service—demonstrated by social security.
Figure: The largest concerns of Chinese urban public from 2006 to 2010
2006 2007 2008 2009 2010
Lay-off and employment 2 6 5 3 1
problems （32.5） （17.4） （22.2） （29.3） （35.6）
5 3 6 2 2
Reform of medical system
（22.8） （24.1） （16.7） （32.5） （33.6）
3 2 3 1 3
Reform of housing system
（29.3） （28.6） （29.5） （33.9） （29.4）
1 4 4 5 4
Social security problems
（37.9） （20.9） （24.4） （22.8） （21.1）
Source: “Survey Report on Living Quality of Chinese Residents” by Horizon Research Consultancy Group
Figure: China’s investment in social security (including Figure: Comparing indices of social security across
employment) from 2003 to 2009 urban and rural residents from 2006 to 2010
Government investment Growth rate 100 2006 2007 2008 2009 2010
(亿元) (%)
8000.0 7607 160
6804 80
67.8
65.8
65.8
7000.0
64.0
63.4
120
59.9
58.9
57.0
55.1
6000.0
53.8
5447
53.6
51.7
51.3
60
47.0
5000.0 4394 80
39.5
3787
4000.0
3186 16.0 24.0 24.9 40 40
2712 18.9 11.8
3000.0
17.5
2000.0 0 20
2003 2004 2005 2006 2007 2008 2009
Cities Small towns Rural
- 14 -

16. 6.2 China’s investment in public services remains far below
international standards.
Figure: Comparing public expenditures ratios between China and the United States in 2003.
China USA
Administrative civil service 37.6 12.5
Economic construction 11.6 5
Public service and social
25 75
management
Others 25.8 7.5
Total 100 100
Figure: Comparing expenditures on education, medical care and social security across China and other countries in 2007
Countries with per Countries with per capital
China capital GDP below USD GDP between USD 3000 and
3000 USD 6000
Education 14.7 13.6 13
Medical care 3.9 8.6 12.1
Social security 10.6 20.5 28.9
Total 29.2 42.7 54
Source: Quoted from Contrast of Financial Layout Structure and Public Service Between China and America by Zhou
Tianyong in Caijing Magazine
- 15 -

17. 7. China has entered a period of high demand for public services and
has confronted huge pressure on livelihoods at the same time.
Figure: Change of per capita GDP of China from 2000 to 2010 (Unit: USD)
4500 4000
3736
4000 3415
3500 USD 3000 2815
3000 2426
2500 2127 Based on international experience,
1860
2000 1590 when per capital GDP in a country
1300 1417
1185 exceeds USD 3000, it will usher into
1500
a period of high-demand of public
1000
services.
500
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: National Statistical Bureau of the People’s Republic of China.
Figure: Trend of macro indices of Chinese residents from 2006 to 2010
4.4 4.31
4.13 4.13 4.1 Evaluation on personal financial situation
4.2
4.27
4 4.03 Evaluation on national financial situation
4.02 4.09
3.87
3.8 3.8
3.85
3.76 3.78 Confidence on government managing economic affairs
3.73
3.6 3.67 3.63
3.67 3.71
3.68
Confidence on government managing international affairs
3.46
3.4 3.26 3.2
Confidence on government managing social affairs
3.2 3.11 3.11 3.07
3
2006 2007 2008 2009 2010
Source: Survey on Living Quality of Chinese Residents form 2006 to 2010, Horizon Research Consultancy Group
- 16 -

18. 8. Trends of public service demand were clear and new areas of growth
were discovered
People wish to improve their livelihood and public services.
Figure: Which should be the focus of the 12th Five-Year Plan?
Cities County towns
30
28.4 People’s livelihood and
25 24.1
wellbeing
22.1 Economic
20.5 19.8
17.9 18.8 17.9 development
20
22.5 21.3 16
15.3
19.9 13.7 14.1
15.4 10.3 9.8
16 9.2
10 14.5
13.6 6.2 13.6 6.4 6.2
11.8 11 6.5 5.7
4.7 2.4
2.2
7.4 7.3 5.4 4.8
1.8 1.9
0
Improvement of
Development of new
Adjustment of income
Economic mode and
Development of
Circular economy
financial sysem
Rural moderniza
Feform of fiscal and
intellectual property
Reform of social
Reform of judicial
security system
Medical reform
Educational reform
Reform of housing
Population/household
Job enlargement
Hi-tech development
Planning of economic
Balancing urban and
emission reduction
industry upgrading
rural development
urbanization
Low carbon and
regions/strategical
development
Protection of
tax system
strategy
system
distribution
security
energy
register
right
layout
Improvement of people’s livelihood and public service is fundamental to the 12th five-year plan.
11th Five-
“Double GDP Per Capita from 2000 to 2010”
Year Plan
12th Five- “Ensuring and improving people's livelihood should be the aim and
Year Plan
fundamental end ┅┅” - 17 -

19. Conclusion:
It is important to be clear about the trends of public service demand, and to match our
concept with it. The key point to improve future public service is to implement the
concept;
It is important to be clear about the boundaries between public benefit and marketization.
So it is necessary to integrally take account of history, cost, and the public’s benefits and
ensure that a majority of people beneft in the long term.
To develop public services internally and externally both in a balanced way, it needs to
be done in phases and with priority, also communication and sharing of development
experience and lessons should be enhanced to avoid twists and turns.
- 18 -

20. About HorizonKey

21. HorizonKey
Who Are We?
HorizonKey is part of the Horizon Research Consultancy Group founded in 1992, one of
China’s first research consulting firms. The Group is a consumer-oriented, data-driven marketing
and management solution provider. Today, it is China’s most prestigious domestic marketing
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The whole group is a seamless research & consulting services chain
With sustainable R&D investment , cooperation
Horizonkey.com: with international institutions, and accordance
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group cultures with the international professional standards,
Horizon Group has grown to become a brand by
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Horizon Research:
Case -based China-fit solutions to international clients.
project studies
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Projects selection customer -driven
advisory consulting solutions
- 20 -

22. HorizonKey
Who Are We?
Horizonkey is an international marketing research company specializing in
social and cultural research.
Founded in 1999, China’s only private marketing research company based on opinion
polling and studies of society and culture.
Honored by ESOMAR and ARF with awards for best research practices
Trustee member of ESOMAR and other academic associations
Rapid dissemination of latest research to over 800 local and international media partners
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 Horizonkey’s employees consist of young and conscientious local and international trained professionals. They
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them have had four or more years of experience in professional social and culture research or policy
study.
- 21 -

23. HorizonKey
Our Values
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For the last ten years, HorizonKey Our deep understanding of Chinese We believe understanding change
has provided connections between society offers a unique perspective in China and around the world
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consumers, simultaneously seeking allows us to share “Key” moments reveal underlying patterns and
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rest of the world. techniques to solve new problems.
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24. HorizonKey
The Horizonkey difference
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habits.
- 23 -

25. Horizon Research Consultancy Group (Horizon Research
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