This essay attempts to explore the transformation from traditional bureaucratic structure to governance structure of public sectors by David Lake's Relational Contracting Approach, analyzing the movement of "anarchy-hierarchy" continuum of global governance structure by its transaction costs-expected costs of opportunism and governance costs : actors may choose more anarchic relations when expected costs of opportunism decreases or governance costs increases and more hierarchic relations when expected costs of opportunism increases or governance costs decreases, then it concludes this continuum model some critiques.