National demand on social services has been increased as new types of social issues are growing such as worldwide recession and rising number of nuclear family. Against them the government started to expand diversified social services programs and as a result it led to the sudden budget increase. It is noticeable that this kind of expansion in social services can have a nation''s budget system under pressure.
Especially Korea in recent days has actively developed new social services programs. It also extended their scope and expand beneficiaries of those programs under the slogan ''Elimination of welfare blind-zones'', which impedes efficient and effective budget use.
The increase of program budget naturally carries over into enlargement of services delivery system. The quality of delivery system such as using a form of contracting-out, QUAGO(Quasi-Governmental Organization) can influence on the enlargement. Financial properties such as program''s budget, grants will also have an impact on it as well. Thus, based on new institutionalism perspective, this study verified how institutional characteristics of each social services program have influence on performance.
This study verified factors influencing on performance by building 8 years of panel data, looking at 210 programs in social services area which had been conducted by Korean government. Time range of data is from 2008 to 2015, which is from 2nd year to 4th year of SABP(Self-assessment of Budgetary Programs).
322 cases of panel data were studied and they were all carried out under complete enumeration method, not by sampling method. And each program has different recipients and different functions so it could be difficult to generalize the result. Therefore, cases were analyzed after being sorted into health·welfare sector and education·culture·sports sector. This will be helpful to understand functional characteristics of social services and set up strategies for them.
First, in the theoretical part, performance of public sector, performance management model and its system of Korea will be discussed. Especially SABP, which is one of the Korea''s performance management systems, is the main object of this study. Second, main evaluation indicator of SABP will be treated, making a logical connection with delivery system of program and financial characteristics.
Third, the policy instrument which are mainly used as the property of 11 kinds of delivery system will be explained. In this part, The appearance of contracting-out, regulation, QUAGO will be described and not only strengths and weaknesses of them but also related issues will be discussed in a policy and economic level.
Forth, classification of delivery systems of Korean social services will be carried out and those classified will be used as the form of variables in the analytic model of influencing factor. The existing classification is so macroscopic that it only focuses on recipient and functions. In this research, the whole service process from central government to final agencies are classified using bottom method. This made it possible to design 11 kinds of delivery systems and they can be classified as ''central government direct delivery type'', ''central-local government cooperative type'', and ''QUAGO support type''.
Therefore, in this research the characteristics of delivery system include intermediate delivery agency,　QUAGO, final agency, choice method with regulations, and complexity of delivery system. Also, financial characteristics are consist of various types of budget account(general account, special account, fund, budget of program and grants).
In addition, control variables which can affect performance of program are set. These include the age of program, the type of delivered services or goods, and a presidency.
The dependent variables are the overall score of SABP and the level of achievement of measurement index 4-1. Each of them is defined as narrow sense and inclusive sense.
They are each set as the variable and analyzed through panel regression. Panel regression will choose FE(fixed effect) model and RE(random effect) model by consulting the result of hausman test. Unless both of effects obtain significance of results, they will be analyzed through OLS(ordinary least square). Heteroskedasticity will be detected from each analysis model and robust analysis will be used if it is detected.
As seeing the result, first, program age affected both of the achievement level(in health·welfare, education·culture·sports sector) and the overall score(all sectors). Second, the contribution proportion of previous year''s total budget affected positively on the achievement level and the overall score(in health·welfare sector). Third, The type of intermediate delivery agency affected performance of program. Forth, the proportion of grants for local government program in previous year budget affected negatively on the overall score(in education·culture·sports sector). Fifth, the face to face type, one of the delivered services types, affected both of the achievement level and the overall score(all sectors). Sixth, voucher type, one of the delivered services types obtained statistical significance in the achievement level(in education·culture·sports sector) and the overall score(all sectors). Seventh, the variable ''18th president'' obtained statistical significance in the achievement level(all sectors). Eighth, program support function of QUAGO has statistical significance in the overall score(all sectors). Ninth, it was found that the complexity of delivery system is the factor which improves the achievement level(in education·culture·sports sector). Tenth, programs of fund type showed positive impact on the achievement level of program. Eleventh, the proportion of grants for people in previous year''s budget improves the achievement level(in education·culture·sports sector).
Overall, in the achievement level area it is found that the budget effectiveness of intermediate delivery agency and final agency, the ineffectiveness of goods and services types are the main influencing factors. In the overall score area the ineffectiveness of grants for local government and the effectiveness of goods and services types are the main influencing factors. Thus, it is verified that the financial characteristics focusing on budget generally influence on performance of program. The result substantially accords with existing researches.
Policy implications, based on the analysis results, are as follows.
First, the use of QUAGO for the improvement of performance is very important. Especially institutional improvements eliciting an active role of QUAGO which supports each program, and a separation into delivery role and support role are needed. It is considered to be appropriate for QUAGO to perform monitoring, analysis and evaluation in a practical level. Outside experts including civilians needs to focus on institutional reform such as monitoring and evaluation design, procedures, methods, and feedback system.
Second, the grant is also one of the influencing factors. Programs with grant represent huge share of total social services programs. But the actual alloted proportion of grant support by both central and local government shows more statistical significance than the specified criteria of grant support. The fact that only the actual proportion of grant support, not the specified percentage, is meaningful shows that a competent authority needs to take a close look at this gap. For local government particularly, forced sharing of budget can cause resistance and financial aggravation. Thus it is necessary to estimate the allotment ratio by using elaborate analysis model in multilateral perspective. When it comes to the program which utilizes a public delivery system and private delivery system at the same time, there should be a discussion to unify all the delivery systems into one effective system by estimating performance according to the amount of the grants from both sides.
As a national budget and social service budget have been increased, it is generally believed that this trend is to continue. Therefore, various policy instruments should be looked into for the effective delivery of goods and services on the standpoint of institution and structure. Also, if it is an unstoppable flow of rising budget, it should be focused on the sustainability of a nation and policies from the wide perspective. It is desirable to be led to thoughts such as the growth of related market, role reestablishment of QUAGO, and re-examining of grant allotment ratio.