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University of Strathclyde, Glasgow
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY Lester M. Salamon Johns Hopkins University and Russia’s Higher School of Economics University of Strathclyde, Glasgow October 13, 2014 © Lester M. Salmon, 2014
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10 Great Myths of Global Civil Society
There is no such thing as a civil society or nonprofit “sector.”
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The Global Associational Revolution
FOR-PROFIT SECTOR GOVERNMENT SECTOR CIVIL SOCIETY SECTOR
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A. IS THERE SUCH A THING AS A NONPROFIT SECTOR?
Is there such a thing as the Nonprofit Sector TOPIC II: WHAT IS THE NONPROFIT SECTOR AND WHY DO WE HAVE IT? A. IS THERE SUCH A THING AS A NONPROFIT SECTOR? 1) Terminological Confusion Independent sector Voluntary sector Civil society sector Charitable sector Noncommercial sector Public-benefit sector Nongovernmental sector Social economy sector Johns Hopkins Center for Civil Society Studies
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Is there such a thing as a “nonprofit sector”
TOPIC II: WHAT IS THE NONPROFIT SECTOR AND WHY DO WE HAVE IT? 1)Terminological Confusion 2) Organizational Diversity Political parties Schools Museums Trade unions Universities Nursing homes Foundations Homeowner organizations NGOs Religious congregations Professional associations Environmental Cooperatives groups Business associations Hospitals Social srvc orgs Johns Hopkins Center for Civil Society Studies
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SECTORS OF THE SNA SYSTEM TYPE OF INSTITUTIONAL UNIT
Treatment Of Nonprofit Institutions In The SNA SECTORS OF THE SNA SYSTEM NPISH sector S.15 Households S.14 General government S.13 Nonfinancial corporations S.11 TYPE OF INSTITUTIONAL UNIT Financial S.12 C1 Corporations C2 G Government units H Households Nonprofit institutions (NPI) N1 N2 N3 N4 N5
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Who we are Our metaphor
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CNP PROJECT COUNTRIES Kenya Israel Pakistan Australia Belgium Italy
Slovakia Germany United Kingdom Denmark France Sweden Norway The Netherlands Finland Austria Switzerland Czech Republic Poland Romania Russia Hungary United States Mexico Colombia Brazil Chile Canada Uganda Argentina South Africa Peru Tanzania Ghana Lebanon India Thailand New Zealand Morocco Portugal Spain Ireland Egypt Japan Korea The Philippines Turkey
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Common features of Nonprofits
Organizations Private—institutionally separate from government Non-profit-distributing Self-governing Noncompulsory
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Personal social services
Museums Hospitals Trade associations Universities Environmental groups Clinics Human rights organizations Professional Sports clubs Day care centers Foundations Personal social services
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10 Great Myths of Global Civil Society
There is no such thing as a civil society or nonprofit “sector.” The civil society sector is mostly engaged in provision of services.
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Why do we have a nonprofit sector?
IS A NONPROFIT SECTOR NEEDED? WHY? Market Failure/Government Failure Contract Failure: The Trust Theory Supply-side theories Johns Hopkins Center for Civil Society Studies
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Why do we have a nonprofit sector
Service provision Advocacy Expression Community-building / social capital Value guardian / mobilization Source: Lester M. Salamon, The State of Nonprofit America (Washington, D.C.: The Brookings Institution Press, 2002)
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10 Great Myths of Global Civil Society
There is no such thing as a civil society or nonprofit “sector.” The civil society sector is mostly engaged in provision of services. The civil society sector is a marginal actor economically.
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CNP PROJECT COUNTRIES Kenya Israel Pakistan Australia Belgium Italy
Slovakia Germany United Kingdom Denmark France Sweden Norway The Netherlands Finland Austria Switzerland Czech Republic Poland Romania Russia Hungary United States Mexico Colombia Brazil Chile Canada Uganda Argentina South Africa Peru Tanzania Ghana Lebanon India Thailand New Zealand Morocco Portugal Spain Ireland Egypt Japan Korea The Philippines Turkey
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Global Civil Society, Volume 2
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The Scale of Nonprofit Activity, 40 Countries
48.4 million full time equivalent jobs 4.6% of economically active population
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Non-profit sector revenue (41 countries)
vs. 12 largest economies, 2012 *Estimated Data sources: GDP - World Bank; Nonprofit revenue - JHU/CCSS
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Employment in npis vs. Largest Firms, 37 Countries
CIVIL SOCIETY ORGANIZATIONS* 48 MILLION LARGEST PRIVATE COMPANIES 4 MILLION * Including volunteers and religious worship organization workforce, where available.
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10 Great Myths of Global Civil Society
There is no such thing as a civil society or nonprofit “sector.” The civil society sector is mostly engaged in provision of services. The civil society sector is a marginal actor economically. Civil society organizations are chiefly an American phenomenon and are far less in evidence in other countries. There is no civil society sector for all intents and purposes in the Scandinavian countries, where the welfare state is most fully developed.
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U.S. NONPROFITS: A MAJOR ECONOMIC FORCE
Source: Johns Hopkins Nonprofit Employment Data Project, 2003
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Nonprofit workforce as a share of Economically active population, by country
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Nonprofit workforce as a share of Economically active population, by country
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UN Handbook on NonProfit Institutions
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GLOBAL CIVIL SOCIETY & VOLUNTEERING: LATEST UN NONPROFIT HANDBOOK FINDINGS ON 16 COUNTRIES
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Who we are NPI contribution to gdp,
Employment in npis vs. Largest Firms, 37 Countries NPI contribution to gdp, Including Volunteers, by country, 2003 Who we are 0.8% 1.7% 2.0% 2.2% 2.8% 1.9% 3.3% 3.6% 4.2% 5.1% 5.5% 6.6% 6.7% 0.6% 2.7% 1.4% 1.3% 1.1% 2.5% 0.7% 1.0% 0.4% 0.9% 1.6% 2.3% 3.4% 4.6% 4.7% 4.9% 5.2% 5.3% 5.8% 7.1% 4.5% Thailand Czech Republic Portugal Mexico Kyrgyzstan Brazil Norway France Australia Japan New Zealand Belgium United States Mozambique Israel 16-country average PERCENT OF GDP PAID WORKERS VOLUNTEERS 7.1% 1.0% 8.1% Canada Source: The State of Global Civil Society and Volunteering: Latest findings from the implementation of the UN Nonprofit Handbook. (Johns Hopkins Center for Civil Society Studies, 2013).
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Contribution to GDP, NPI vs. Other Industries,
8-Country Average ELECTRICITY, GAS, & WATER SUPPLY CONSTRUCTION FINANCIAL INTERMEDIATION TRANSPORT, STORAGE AND COMMUNICATION 2.4% 5.1% 5.6% 7.0% 5.0% NPI SECTOR 8-COUNTRY AVERAGE
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Npi Share of Belgian Value Added,
Selected Fields, 2001 52.9% 42% 66.2% HEALTH SOCIAL SERVICES SPORTS & RECREATION
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10 Great Myths of Global Civil Society
Civil society organizations are chiefly an American phenomenon and are far less in evidence in other countries. There is no civil society sector for all intents and purposes in the Scandinavian countries, where the welfare state is most fully developed. Paid staff drive out volunteers.
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Civil Society Organization Paid Vs. Volunteer Labor, 37 Countries
VOLUNTEERS 44% PAID WORKERS 56% 47.6 million (including religion)
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Volunteers as % of npi Workforce, by Country Cluster, 37 Countries
38% ALL COUNTRIES 38% DEVELOPING 38% DEVELOPED 24% 30% 31% 32% 37% 55% 64% ASIAN INDUSTRIALIZED LATIN AMERICA WELFARE PARTNERSHIP CENTRAL EUROPE ANGLO - SAXON AFRICA NORDIC
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“VOLUNTEERLAND”—THE WORLD’S SECOND MOST POPULOUS NATION
If volunteers were a nation… IF VOLUNTEERS WERE A NATION… MILLIONS OF PEOPLE 15 YEARS OR OLDER “VOLUNTEERLAND”—THE WORLD’S SECOND MOST POPULOUS NATION 92.8 101.3 109.4 121.6 127.7 162.4 239.7 756.5 1,023.5 Pakistan Bangladesh Japan Russia Brazil Indonesia United States India China 971.0 VOLUNTEERLAND
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FTE Volunteers vs. Employment in Selected Industries, 37 Countries
38.4 34.4 20.8 MILLIONS OF FTE JOBS 5.2 VOLUNTEERS UTILITIES (water, gas, electr.) TRANSPORTATION CONSTRUCTION
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CONTRIBUTION TO GDP, VOLUNTEERS vs. SELECTED INDUSTRIES, CANADA
Why measure volunteering? CONTRIBUTION TO GDP, VOLUNTEERS vs. SELECTED INDUSTRIES, CANADA $14.1 billion $12.8 billion GDP CONTRIBUTION BILLIONS OF CANADIAN $ $6.1 billion VOLUNTEERS Motor vehicle manufacturing Agriculture
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Volunteering Input as a Share of Total
Private Philanthropy, 36 Countries GIVING OF CASH 32% GIVING OF TIME 68% Total value of private philanthropy, including religion = $564 bn.
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Civil Society Paid vs. Volunteer Staff AS % OF Total Workforce, 37 Countries
35% 65% 100% PAID STAFF VOLUNTEERS Above average Below average Total 27% 57% 8%
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ilo MANUAL ON THE MEASUREMENT OF VOLUNTEER WORK
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10 Great Myths of Global Civil Society
Paid staff drive out reliance on volunteers. Philanthropy is the chief source of civil society organization revenue.
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Sources Of Civil Society Revenue, 34-Country average
PHILANTHROPY 12% GOVERNMENT 35% FEES 53%
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10 Great Myths of Global Civil Society
Philanthropy is the chief source of civil society organization revenue. Philanthropy is at least the chief source of civil society revenue in the United States.
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Sources of Civil Society Revenue, by Country
FEE DOMINANT FEES, CHARGES PHILANTHROPY GOVERNMENT ALL COUNTRIES 53 % 35 % 12% Czech Republic Spain India Pakistan Japan Tanzania Hungary Uganda Slovakia United States Finland Norway Poland Italy Sweden Australia Peru Colombia South Korea Argentina Brazil Kenya Mexico Philippines 47% 49% 51% 52% 53% 55% 57% 58% 60% 61% 62% 63% 70% 71% 73% 74% 81% 85% 92% 39% 32% 36% 6% 45% 27% 7% 22% 31% 35% 24% 37% 29% 18% 15% 19% 5% 9% 14% 19% 13% 43% 3% 20% 18% 38% 23% 6% 7% 15% 9% 12% 4% 11% 35 Countries, without volunteers % may not add to 100 due to rounding
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Sources of Civil Society Revenue, by Country
GOVERNMENT DOMINANT FEES, CHARGES PHILANTHROPY GOVERNMENT ALL COUNTRIES 53 % 35 % 12% South Africa Romania United Kingdom Canada Austria France Netherlands Israel Germany Belgium Ireland 32% 29% 45% 39% 43% 35% 26% 19% 16% 44% 45% 47% 51% 50% 58% 59% 64% 77% 24% 26% 9% 6% 8% 2% 10% 3% 5% 7% 35 Countries, without volunteers % may not add to 100 due to rounding
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Why do we have a nonprofit sector?
Market Failure/Government Failure Contract Failure: The Trust Theory Supply-side theories Voluntary Failure Johns Hopkins Center for Civil Society Studies
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10 Great Myths of Global Civil Society
The nonprofit sector is labor intensive rather than capital intensive.
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Nonprofit Fiscal Gap Operating revenue Investment capital Hard Soft
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Nonprofit Capital Needs vs. Success Securing Capital, by Purpose
Orgs. needing capital Orgs. securing needed capital Technology Program development Buildings/ land Staff development Strategic planning Vehicles/ equipment PERCENT OF ORGANIZATIONS 91% 80% 77% 67% 53% 52% 37% 25% 39% 26% 31% 42%
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PHILANTHROPY’S BIG BANG
SOURCE: Lester M Salamon, Ed., The New Frontiers of Philanthropy, (New York: Oxford University Press, 2014).
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NEW FRONTIERS OF Philanthropy: Actors/tools
Types of Actors Capital Aggregators Secondary Markets Social Stock Exchanges Foundations as Philanthropic Banks Quasi-Public Investment Funds Enterprise Brokers Capacity Builders Online Portals Corp-Originated Charitable Funds Conversion Foundations Funding Collaboratives Types of Tools Loans / Credit Enhancements Bonds Securitization Equity Investments Social Impact Bonds Insurance Social Investing & Purchasing Prizes, Crowd-sourcing SOURCE: Lester M Salamon, Ed., The New Frontiers of Philanthropy, (New York: Oxford University Press, forthcoming, 2014).
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IS YOUR organiztion READY for THE NEW FRONTIERS OF PHILANTHROPY?
Now available at: amazon.com oup.com
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10 Great Myths of Global Civil Society
The nonprofit sector is labor intensive rather than capital intensive. The civil society sector is growing at a slower rate than the private business sector.
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Average Annual Growth of NPIs vs. Total Economy, 5 Countries
16.6% 7.0% 6.4% 6.2% 4.4% TOTAL ECONOMY NPI SECTOR 8.1% 6.7% 3.6% 5.4% 5.3% 4.1% -0.3% 5-COUNTRY AVERAGE CZECH REPUBLIC BELGIUM CANADA UNITED STATES JAPAN Does not include volunteer labor
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LESTER M. SALAMON lsalamon@jhu.edu
For More information LESTER M. SALAMON Website: ccss.jhu.edu
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Sources Of Civil Society Revenue, RUSSIA
GOVERNMENT 15% PHILANTHROPY 33% FEES 51%
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