New Paths for Third-Sector Institutions in a Welfare State in Crisis: The Case of Portugal

Abstract

This article describes the recent changes in the political, cultural and socioeconomic environment of the third sector (TS) in Portugal in the context of crisis and structural adjustment. Belatedly, when compared to many other countries, an overall sector is being structured in Portugal, overcoming the traditional neglect of the political system and the divisions inside the field. The historical institutional approach is here used to make sense of the current changes and debates and the different policy coalitions in place are identified through present and past policy analysis and content analysis of policy debates. This provides a broad background for exploring the hypothesis that the Portuguese TS may be arriving at a critical juncture that will set a new path under the development of a new and broader identity as "social economy." This paper identifies path-breaking trends, as well as continuities. It argues that the structuring axis TS/welfare state, which has been the driving force of the TS in Portugal, is shifting to the axis TS/economy as a result of changes in both the TS and its political coalitions' strategies and in the broader context and institutional framework of the welfare state.

The Scarring Effect of the 2008 Economic Crisis: Growth and Growth Decline in Austria’s Nonprofit Social Services Sector

“…Studies concerned with the nonprofit sector in Southern European countries have especially looked at effects on the sector in an environment where the states completely abandoned their role as welfare providers. These studies describe some detachment of the third sector from the government, in the sense that the third sector acted more autonomously from traditional political authority, and highlight a strengthened role both in welfare provision and the coordination of local welfare services (Ferreira 2015;Tzifakis et al 2017). In the course of this, nonprofit organizations also spotlighted positive aspects such as increased efficiency, volunteering rates or donations (e.g.…”

“…The global economic crisis certainly had an impact on the third sector (e.g. Chaves-Avila and Savall-Morera 2019; Dietz et al 2014;Ferreira 2015;Horvath et al 2018;Never and de Leon 2014;Pape et al 2019;Tzifakis et al 2017). The financial crisis followed by a sovereign debt crisis and fiscal austerity measures aggravated the economic conditions for nonprofit organizations, nonprofit social services in particular.…”

“…Consequently, these service providers have had to cope with 'doing more with less' (e.g. Cunningham 2016;Cunningham et al 2016) or substitute government funds by user payments (Ferreira 2015). The crisis accelerated the already ongoing transformation of the third sector ensuing from increased public cost-cutting efforts, a gradual retreat of the state from funding societal tasks and the further development of market mechanisms (service contracting and tendering procedures) (Pape et al 2016).…”

“…Clifford 2017;Dietz et al 2014;Horvath et al 2018) or Southern European countries (e.g. Chaves-Avila and Savall-Morera 2019;Ferreira 2015;Tzifakis et al 2017). Countries that classify as corporatist welfare states have less often been investigated.…”

Relevance of indicators linked to communication and accountability in not-for-profit organizations

“…El primero, en la actual situación económica, no puede prever y controlar todas las necesidades sociales; el segundo es incapaz de desarrollar, por interés propio, actividades que no reporten una maximización de los beneficios. Por todo ello, y debido a su capacidad de redistribución y estabilización, se está tendiendo cada vez más a delegar buena parte de sus funciones a las Entidades Sin Fines de Lucro (ESFL) (Hustinx et al 2014;Ferreira 2015;Pedercini 2015;Pape et al 2016). Como consecuencia, se observa una creciente demanda de los servicios que presta el SNL (PTS, 2012).…”