Unpacking the State: The Implications for the Third Sector of Changing Relationships Between National and Local Government

The drive to welfare reform has revolutionalized the relationship between the state and the third sector in many countries. But this article argues that, if we are to understand the impact of the changing role of the state on the third sector, then we must first understand the dynamics of the relationship between national and local government. It compares two countries—the U.K. and Italy—where national-local government relations have developed in different directions, and suggests a number of avenues for further analysis of this three-way relationship.     

Heading South: Time to Abandon the ‘Parallel Worlds’ of International Non-Governmental Organization (NGO) and Domestic Third Sector Scholarship?

Since third sector research emerged as a full-fledged interdisciplinary academic field during the late 1980s, a separation has usually been maintained—in common with many other social science disciplines—between communities of researchers who are primarily concerned with the study of the third sector in rich Western countries and those who work on the third sector in the so-called developing world. Whilst internationally focused researchers tend to use the language of ‘non-governmental organizations’, those in domestic settings usually prefer the terms ‘non-profit organization’ or ‘voluntary organization’, even though both subsectors share common principles and are equally internally diverse in terms of organisations and activities. Whilst there has long been common-sense logic to distinguishing between wealthier and poorer regions of the world based on differences in the scale of human need, the ‘developed’ versus ‘developing’ category can also be criticised as being rather simplistic and unhelpfully ideological. As the categories of ‘developing’ and ‘developed’ countries become less clear-cut, and global interconnectedness between third sectors and their ideas grows, this paper argues that we need to reconsider the value of maintaining these parallel worlds of research, and instead develop a more unified approach.     

Research Note: The Future of Third-Sector Teaching and Research in Central and Eastern Europe

This research note addresses issues, concerns, and opportunities for teachers and researchers of the third sector in Central and Eastern Europe, drawing on experiences in Bulgaria, Croatia, Estonia, and Hungary. The paper briefly outlines the development of the third sector in the aforementioned countries, and describes the current state of third sector teaching and research there. It then frames the challenges for the region's teachers and researchers, and proposes an appropriate role for the West, commenting upon the West's relevance within Central and Eastern Europe.     

Third Sector Research in International Perspective: The Role of ISTR

The International Society for Third Sector Research (ISTR) celebrated its tenth anniversary in 2002. Voluntas, now the journal of ISTR, started publishing in 1990. This paper reviews changes in topics, diversity of regions studied, and diversity of authors from ISTR conference papers and Voluntas articles to examine the state of research on the third sector. The findings show that ISTR and Voluntas have increased in the range of content, regions covered, and disciplinary mix. The paper also reviews progress made on third sector research and some challenges that lie ahead.     

In search of the non-profit sector. I: The question of definitions

In this paper we argue that the lack of attention to the third sector historically is primarily a result of the weakness and limitations of the concepts that are used to define and describe it. The purpose of this article is to remedy this situation by developing a general definition of the sector that can be used in comparative research. To do so, the article first identifies four alternative types of definitions that are potentially available and evaluates each in terms of three basic criteria. On this basis it concludes that the most useful definition is the structural/operational one, which includes in the non-profit sector organisations that share five basic characteristics. These are: formal, private, non-profit-distributing, self-governing and voluntary. The basic definition is then tested against the realities of three disparate countries and found to perform quite well. On this basis we recommend the structural/operational definition, particularly for comparative, crossnational research.Lester Salamon is Professor at the Johns Hopkins University,Baltimore, Maryland 21218 and Director of the Institute for Policy Studies there.Helmut Anheier is Research Scientist at the Institute for Policy Studies at the Johns Hopkins University and Assistant Professor of Sociology at Rutgers University, New Brunswick, New Jersey, 08903. He is co-editor ofVoluntas.     

Third Sector Accounting Standard Setting: Do Third Sector Stakeholders Have Voice?

The study examines the empirical evidence of the submissions received from third sector organisations and their stakeholders in response to proposed changes to the New Zealand accounting standard setting framework. The study aims to determine whether third sector stakeholders have voice in third sector accounting standard setting. Critical comparison of submissions and proposals appear to show that the standard setters were not listening to their third sector stakeholders. However, the study found that the standard setters utilised legitimacy management strategies to gather third sector stakeholders’ voice. The standard setters proactively achieved this by conforming to the environment and achieving pragmatic legitimacy to ensure that their decisions were based on third sector stakeholders’ voice. The study is important for those countries where accounting standard setters are grappling with the due process to undertake for third sector accounting standards in its elevation of working groups to the role of salient stakeholders.     

Legitimacy and the Role of UK Third Sector Organizations in the Policy Process

This paper explores the legitimacy of third sector organizations in the policy process in the United Kingdom. It draws on empirical research to examine how legitimacy is defined, both by third sector organizations and by those they target within government. The paper argues that while many third sector organizations give high priority to political forms of legitimacy—in the sense of participatory structures and accountability to members and beneficiaries—government is generally more likely to give priority to technical forms of legitimacy, e.g., the quality of research and the ability to implement policy. Nonetheless, political legitimacy is still important, first because this is the form of legitimacy that third sector organizations claim for themselves and second because, as government gives way to governance with an increase in partnerships and collaboration, the dilemmas faced by third sector organizations in achieving political legitimacy are being faced on a broader canvas.     

Transnational social protection infrastructures: African migrants in Mexico

In the past years, increasingly restrictive migration policies have pushed many migrants to seek new and more risky migration routes. Many studies have investigated aspects of social protection for migrants from the Global South in industrialized countries of the Global North, with powerful welfare states. Yet, such focus has failed to understand the complexities during the migration process, where people often spend uncertain periods of time in transit countries and the state is frequently absent. In these contexts, social protection is predominantly provided by the third sector (TS) and informal networks both nationally and transnationally. Based on ethnographic fieldwork conducted with African migrants and TS organizations in Mexico, this paper explores the different and often semi-formal relationships between the TS, the state, and the migrants that result in complex transnational social protection infrastructures to cover the migrants' basic social protection needs.     

Explaining the Third Sector in South Korea

The paper presents the main characteristics and the distinctive nature of the South Korean third sector compared to most Western countries. Differences are explained in terms of cultural embededdness and political embededdness—in particular with respect to the import of Confucianism (or neo-Confucianism) and of human rights abuse in articulation with a strong ideology of anticommunism that has been developed by a succession of dictatorial regimes since the end of the Japanese colonization of Korea. The paper concludes by highlighting positive factors for the future development of the third sector in Korea.     

The third sector in welfare policies in Italy: the contradictions of a protected market

The paper describes how the involvement of non-profit organisations (NPOs) in welfare politics in Italy has historically developed in a mutual accommodation with the state, which has prevented the growth and the public recognition of an independent third sector. Using data from official statistics and recent research on non-profits, three analytical dimensions of the relationship between State and the third sector are considered: the resource exchange; the division of responsibility for delivering public services; and the dynamics of social policy making. The study indicates that distinctive features of the ‘welfare mix’ in Italy have been: the attribution of public status to many NPOs as a consequence of an arrangement between Church and state; the weakness of state guidance, in spite of the generous economic assistance provided to NPOs by the state; the substitutive role of NPOs in providing basic public services; and the emergence of informal arrangements between public authorities and NPOs mediated by political patronage. I thank Ralph Kramer, Ugo Ascoli, Perri 6, and three anonymous referees ofVoluntas for helpful comments they provided on an earlier draft of this paper. My research was supported by a grant from the National Council of Research of Italy, and through facilities provided by the School of Social Welfare at the University of California, Berkeley. An earlier version of this paper is published in P. 6 and I. Vidal (eds)Delivering Welfare: Re-positioning Non-profit and Co-operative Action in Western European Welfare States, CIES, Barcelona, 1994.     

INFORMAL SECTOR AND ECONOMIC DEVELOPMENT: THE CREDIT SUPPLY CHANNEL

The standard view suggests that removing barriers to entry and improving judicial enforcement reduces informality and boosts investment and growth. However, a general equilibrium approach shows that this conclusion may hold to a lesser extent in countries with a constrained supply of funds because of, for example, a more concentrated banking sector or lower financial openness. When the formal sector grows larger in those countries, more entrepreneurs become creditworthy, but the higher pressure on the credit market limits further capital accumulation. We show empirical evidence consistent with these predictions. (JEL O16, O43, E26)     

A Comment on Salamon and Anheier's “Social Origins of Civil Society”

In this paper we examine Salamon and Anheier's characterization and testing of alternative theories of the size and scope of the nonprofit sector in different countries. We identify various nuances and refinements of these theories, and we suggest ways in which their validation through statistical testing can be extended and improved. Finally, we offer additional avenues of research that could productively exploit the important cross-national data set assembled by the Johns Hopkins Project.     

Social Marketisation and Policy Influence of Third Sector Organisations: Evidence from the UK

The marketisation of social sector organisations or social marketisation emerged and spread around the world in the past three decades. In contrast with existing literature which claims that social marketisation makes social sector organisations reduce their efforts on advocacy and thus harms a civil society, this research argues that social marketisation is positively contributed to the influence of third sector organisations on government policies, and thus it strengthens civil society, rather than erodes it. Based on the National Survey of Charities and Social Enterprises in the UK, the results of regression analyses indicate clearly that, when other factors are equal, the two indicators of social marketisation, social entrepreneurship and achieving government contracts for purchasing services, are both statistically significant in estimating the level of policy influence of third sector organisations. The contribution of this research is that it finds a positive, instead of a negative, relationship between social marketisation and the perceived policy influence of third sector organisations.     

Factors Holding Back Small Third Sector Organizations’ Engagement with the Local Public Sector

In many developed countries there has been a shift from grants to contracts as a source of local public sector funding of the third sector. Smaller third sector organizations may struggle to compete for this funding due to the complex process of accessing and maintaining this funding and conveying their capabilities to funding providers. This study utilizes data from the United Kingdom to determine what factors increase these administrative and communication barriers for smaller organizations. Resources in income and volunteers affect perceptions of the process of obtaining funding. A solution may be standardization of evaluation and monitoring, but this may lead to isomorphism and loss of variety of provision. Better two‐way communication may allow local authorities to retain variety in public service provision through improved knowledge of their partners.     

Piloting external peer review as a model for performance improvement in third‐sector organizations

Peer review is used widely in the United Kingdom as a means of engendering performance improvement in the statutory sector and is being used increasingly to address the needs of specific networks of third‐sector organizations. The project on which this article is based sought to develop a peer review model that could be applied by any third‐sector organization to improve performance. The article reviews existing initiatives and details elements of models that the research sought to replicate. It describes the approach taken to develop the model, including details of three pilots, and summarizes the associated guidance. Finally, it incorporates a commentary on some of the opportunities and challenges presented by the model as a means of securing continued performance improvement by third‐sector organizations.     

Conceptualizing the Third Sector in Ireland,North and South

While there is a long established and deeply embedded tradition of voluntary action and nonprofit organizing in Ireland, there has been very limited debate on a philosophy of voluntary action or on the place of the third sector in a modern democratic state. It is against this background that practitioners and academics are beginning to articulate their individual understandings of the role of the third sector in Irish society. This paper presents a framework developed from three questions to consider the place of the third sector in a modern democratic state. The questions are: What are the roles of the third sector in a society? What relationships exist between the third and other sectors? How are third sector organizations resourced within that societal context? Answering these questions contributes to a conceptualization of the third sector in Ireland, North and South.

     

Winning a Battle but Losing the War? Third Sector and Social Policy in Latin America: The Case of Uruguay

This paper analyzes some aspects of the third sector’s involvement process in the provision of public social services. Using evidence garnered in previous research based on in-depth interviews, I offer elements toward an assessment of the consequences this process has produced not only in terms of the gains and losses it has produced for social policy, but also for the very identity and constitutive characteristics of the third sector. The evidence hereby compiled strengthens skepticism toward the hypothesis that sees a transformative potential in the role of the third sector in social policy in Latin America. This skepticism arises from issues detected by involved actors themselves and that are linked to the weakness of the sector as a whole.     

Non-governmental organisations and philanthropy: The Peruvian case

This article describes the historic evolution of the third sector in Peru, from its emergence during the time the country was under Spanish colonial rule (from 1535 to 1821) until developments in the twentieth century. Using available information, an attempt is then made to appraise the recent and current scope of the topic and the dimensions of the institutions of the third sector. The legal status and tax regimes are discussed. Some organisational forms of survival and solidarity implemented by the grassroots communities are also described. These confer characteristics that may be different from those of other Latin American countries. Finally, relations between the third sector and the state are described.     

Constituting the Third Sector: Processes of Decontestation and Contention Under the UK Labour Governments in England

Discussion about, and analysis of, the question of definition and the third sector and civil society more generally has developed to a significant degree in recent years. This paper can be located in a new phase of recent research, which seeks to attend to the historical, cultural and politically contingent nature of this domain’s boundaries. The process of constituting the sector is discussed as the product of new discourses of decontestation and contention within third sector policy and practice. It takes England as a case study, drawing on evidence and argument assembled by the authors in recent and ongoing research efforts, variously conducted with the support of the Third Sector Research Centre (TSRC) and the European Commission. The paper proceeds by discussing relevant literature; describing recent patterns of policy institutionalisation; and then tries to draw out more analytically how this process of constitution has been associated not so much with a stable and consistent set of definitions and constructs, but rather with unstable and changing formulations, which reflect the playing out of a dual process of decontestation and contention.     

BOON OR BURDEN? THE EFFECT OF PRIVATE SECTOR DEBT ON THE RISK OF SOVEREIGN DEFAULT IN DEVELOPING COUNTRIES

We explore how the share of the private sector in total external debt affects perceived creditworthiness and the likelihood of sovereign default in developing countries. While there are theoretical arguments both in favor and against a stabilizing role of private‐sector borrowing, the evidence supports the notion that a greater share of the private sector in total external debt is associated with a reduced likelihood of sovereign default. (JEL F34, O16)