10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
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1 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY Lester M. Salamon Johns Hopkins University Japan Commerce Association of Washington October 21, 2013
2 THE GLOBAL ASSOCIATIONAL REVOLUTION FOR-PROFIT SECTOR CIVIL SOCIETY SECTOR GOVERNMENT SECTOR
3 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 1. There is no such thing as a civil society or nonprofit sector.
4 TREATMENT OF NONPROFIT INSTITUTIONS IN THE SNA TYPE OF INSTITUTIONAL UNIT SECTORS OF THE SNA SYSTEM Nonfinancial corporations sector S.11 Financial corporations sector S.12 General government sector S.13 Households sector S.14 NPISH sector S.15 Corporations C 1 C 2 Government units Households G H Nonprofit institutions (NPI) N 1 N 2 N 3 N 4 N 5
5 OUR WHO METAPHOR WE ARE
6
7 CNP PROJECT COUNTRIES Canada United Kingdom Germany Denmark France Sweden Belgium The Netherlands Switzerland Finland Norway Austria Italy Czech Republic Poland Romania Slovakia Russia United States Mexico Colombia Brazil Chile Ireland Spain Portugal Peru Morocco Argentina South Africa Uganda Turkey Israel Ghana Lebanon India Egypt Kenya Thailand Pakistan Tanzania Australia Hungary Japan Korea The Philippines New Zealand
8 COMMON FEATURES OF NONPROFITS Organizations Private institutionally separate from government Non-profit-distributing Self-governing Noncompulsory
9 Trade associations Personal social services Universities Hospitals Environmental groups Clinics Museums Foundations Human rights organizations Professional organizations Day care centers Sports clubs
10 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 1. There is no such thing as a civil society or nonprofit sector. 2. The civil society sector is mostly engaged in provision of services.
11 ROLES AND FUNCTIONS 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)
12 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 1. There is no such thing as a civil society or nonprofit sector. 2. The civil society sector is mostly engaged in provision of services. 3. The civil society sector is a marginal actor economically.
13 AN OVERVIEW OF THE U.S. NONPROFIT SECTOR Lester M. Salamon
14 NONPROFITS: A MAJOR ECONOMIC FORCE NONPROFIT SECTOR RETAIL TRADE MANUFACTURING CONSTRUCTION 7.6 FINANCE & INSURANCE 6.0 TRANSPORTATION & WAREHOUSING AGRICULTURE UTILITIES Paid Volunteers MILLIONS OF FULL-TIME-EQUIVALENT WORKERS Source: Johns Hopkins Nonprofit Employment Data Project, 2003
15 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 1. There is no such thing as a civil society or nonprofit sector. 2. The civil society sector is mostly engaged in provision of services. 3. The civil society sector is a marginal actor economically. 4. Civil society organizations are chiefly an American phenomenon and are far less in evidence in other countries. 5. There is no civil society sector for all intents and purposes in the Scandinavian countries, where the welfare state is most fully developed.
16 THE SCALE OF NONPROFIT ACTIVITY, 40 COUNTRIES 48.4 million full time equivalent jobs 4.6% of economically active population
17 NONPROFIT ORGANIZATION WORKFORCE IN CONTEXT, 40 COUNTRIES NPIs 48.4 Utilities 6.2 Transportation 41.3 Construction 46.5 Manufacturing N U M B E R O F E M P L O Y E E S ( M I L L I O N S ) * Including volunteers
18 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.
19 NONPROFIT WORKFORCE AS A SHARE OF ECONOMICALLY ACTIVE POPULATION, BY COUNTRY 43-country average Netherlands Belgium Canada Israel United Kingdom Ireland New Zealand Sweden United States France Australia Denmark Japan Austria Norway Switzerland Germany Argentina Finland Chile Spain Italy 3.3% 2.2% 5.1% 3.2% 6.4% 2.5% 7.0% 5.5% 10.1% 5.8% 15.9% 9.7% 3.4% 13.1% 9.0% 3.2% 12.3% 5.8% 8.6% 6.2% 3.0% 5.9% 3.1% 5.9% 2.9% 4.9% 3.9% 6.4% 1.5% 2.2% 5.6% 2.8% 4.5% 7.3% 4.3% 2.6% 6.9% 3.7% 3.0% 6.8% 3.2% 2.7% 5.9% 2.6% 3.1% 5.7% 2.6% 2.4% 5.0% 2.8% 1.5% 4.3% 2.4% 1.8% 4.3% 8.0% 7.8% 10.3% 1.5% 11.8% 11.0% 2.3% 10.9% 9.6% 9.6% 9.2% 9.0% 8.8% 8.8% Paid workers Volunteers 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
20 NONPROFIT WORKFORCE AS A SHARE OF ECONOMICALLY ACTIVE POPULATION, BY COUNTRY 43-country average 3.3% 2.2% 5.5% Korea, Republic of 2.5% 1.7% 4.2% Portugal 3.0% 1.3% 4.2% South Africa 1.7% 1.7% 3.4% Brazil 2.7% 3.3% Egypt 3.1% 3.2% Uganda 1.0% 1.4% 2.4% Colombia 1.7% 2.3% Mexico 1.5% 2.2% Kenya 1.3% 0.8% 2.1% Peru 1.3% 0.8% 2.1% Hungary 1.7% 2.0% Tanzania 1.4% 1.9% Philippines 1.2% 1.9% Czech Republic 1.4% 1.7% India 0.8% 1.5% Morocco Russia 0.8% 1.5% 1.2% Paid workers Slovakia Pakistan 1.0% 1.0% Volunteers Poland 0.9% Romania 0.7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
21 NPI CONTRIBUTION EMPLOYMENT IN NPIs WHO vs. LARGEST WE ARE to GDP, FIRMS, 37 COUNTRIES INCLUDING VOLUNTEERS, BY COUNTRY, country average Canada Israel Mozambique United States Belgium New Zealand Japan Australia France Norway Brazil Kyrgyzstan Mexico Portugal Czech Republic Thailand 0.8% 0.8% 1.7% 1.9% 2.0% 2.0% 2.2% 1.6% 2.7% 2.0% 1.9% 2.8% 2.8% 2.3% 2.2% 2.5% 3.3% 0.6% 3.6% 3.6% 1.4% 4.2% 1.3% 3.4% 0.9% 1.1% 4.5% 5.1% 4.7% 4.6% 5.5% 0.7% 4.9% 1.0% 5.3% 5.2% 6.7% 6.6% 5.8% P E R C E N T O F G D P 7.1% 1.0% 8.1% 0.4% 6.7% 6.6% 7.1% PAID WORKERS VOLUNTEERS 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).
22 CONTRIBUTION TO GDP, NPI vs. OTHER INDUSTRIES, 8-COUNTRY AVERAGE 7.0% 5.0% 5.1% 5.6% 2.4% NPI SECTOR 8-COUNTRY AVERAGE ELECTRICITY, GAS, & WATER SUPPLY CONSTRUCTION FINANCIAL INTERMEDIATION TRANSPORT, STORAGE AND COMMUNICATION
23 % O F G D P VALUE ADDED AS % OF GDP, NPI vs. SELECTED INDUSTRIES, CANADA, % VOLUNTEERS PAID WORKERS 5.1% 6.1% 2.3% 1.5% 1.4% Retail trade Mining, oil, & gas extractions NONPROFIT SECTOR Accommodation & food services Agriculture Motor vehicle manufacturing
24 NPI SHARE OF BELGIAN VALUE ADDED, SELECTED FIELDS, 2001 SOCIAL SERVICES 66.2% SPORTS & RECREATION 52.9% HEALTH 42%
25 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 4. Civil society organizations are chiefly an American phenomenon and are far less in evidence in other countries. 5. There is no civil society sector for all intents and purposes in the Scandinavian countries, where the welfare state is most fully developed. 6. Volunteers play a more important role in the civil society workforce in developing than developed countries.
26 CIVIL SOCIETY ORGANIZATION PAID VS. VOLUNTEER LABOR, 37 COUNTRIES VOLUNTEERS 44% PAID WORKERS 56% 47.6 million (including religion)
27 M I L L I O N S O F F T E J O B S FTE VOLUNTEERS VS. EMPLOYMENT IN SELECTED INDUSTRIES, 37 COUNTRIES VOLUNTEERS UTILITIES (water, gas, electr.) TRANSPORTATION CONSTRUCTION
28 IF VOLUNTEERS WERE A NATION IF VOLUNTEERS WERE A NATION VOLUNTEERLAND THE WORLD S SECOND MOST POPULOUS NATION China VOLUNTEERLAND India United States Indonesia Brazil Russia Japan Bangladesh Pakistan , M I L L I O N S O F P E O P L E 1 5 Y E A R S O R O L D E R
29 VOLUNTEERS AS % OF NPI WORKFORCE, BY COUNTRY CLUSTER, 37 COUNTRIES ALL COUNTRIES DEVELOPING DEVELOPED 38% 38% 38% NORDIC 64% AFRICA 55% ANGLO - SAXON CENTRAL EUROPE WELFARE PARTNERSHIP LATIN AMERICA ASIAN INDUSTRIALIZED 37% 32% 31% 30% 24%
30 WHY MEASURE VOLUNTEERING? CONTRIBUTION TO GDP, VOLUNTEERS vs. SELECTED INDUSTRIES, CANADA $14.1 billion $12.8 billion $6.1 billion VOLUNTEERS Motor vehicle manufacturing Agriculture
31 IF VOLUNTEERS WERE A NATION VOLUNTEERLAND THE WORLD S 7 TH LARGEST ECONOMY United States Japan Germany China United Kingdom France VOLUNTEERLAND Canada Spain Italy 4,229 3,329 2,303 2,280 1,457 1,348 1,134 1,130 1,097 12,580 U S $ B I L L I O N S,
32 VOLUNTEERING INPUT AS A SHARE OF TOTAL PRIVATE PHILANTHROPY, 36 COUNTRIES GIVING OF TIME 68% GIVING OF CASH 32% Total value of private philanthropy, including religion = $564 bn.
33 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 6. Volunteers play a more important role in the civil society workforce in developing than developed countries. 7. Paid staff drive out reliance on volunteers.
34 CIVIL SOCIETY PAID vs. VOLUNTEER STAFF AS % OF TOTAL WORKFORCE, 37 COUNTRIES VOLUNTEERS PAID STAFF Below average Above average Total Above average 8% 27% 35% Below average 57% 8% 65% Total 65% 35% 100%
35 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 6. Volunteers play a more important role in the civil society workforce in developing than developed countries. 7. Paid staff drive out reliance on volunteers. 8. Philanthropy is the chief source of civil society organization revenue.
36 SOURCES OF CIVIL SOCIETY REVENUE, 34-COUNTRY AVERAGE PHILANTHROPY 12% GOVERNMENT 35% FEES 53%
37 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 8. Philanthropy is the chief source of civil society organization revenue. 9. Philanthropy is at least the chief source of civil society revenue in the United States.
38 % may not add to 100 due to rounding SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY FEE DOMINANT FEES, CHARGES GOVERNMENT PHILANTHROPY ALL COUNTRIES 53 % 35 % 12% Philippines Mexico Kenya Brazil Argentina South Korea Colombia Peru Australia Sweden Italy Poland Norway Finland United States Slovakia Uganda Hungary Tanzania Japan Pakistan India Spain Czech Republic 47% 51% 49% 55% 53% 52% 51% 58% 58% 57% 55% 55% 63% 62% 61% 60% 70% 70% 74% 73% 71% 81% 85% 92% 5% 5% 7% 6% 9% 15% 15% 19% 18% 24% 24% 22% 29% 27% 27% 31% 31% 35% 32% 37% 36% 36% 39% 45% 3% 4% 3% 3% 6% 7% 6% 7% 6% 11% 9% 14% 15% 12% 15% 13% 13% 18% 14% 20% 19% 23% 38% 43%
39 SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY GOVERNMENT DOMINANT ALL COUNTRIES FEES, CHARGES 53 % GOVERNMENT PHILANTHROPY 35 % 12% Ireland 16% 77% 7% Belgium 19% 77% 5% Germany 32% 64% 3% Israel 26% 64% 10% Netherlands 39% 59% 2% France 35% 58% 8% Austria 43% 50% 6% Canada 39% 51% 9% United Kingdom 45% 47% 9% Romania 29% 45% 26% South Africa 32% 44% 24% % may not add to 100 due to rounding
40 10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY 8. Philanthropy is the chief source of civil society organization revenue. 9. Philanthropy is at least the chief source of civil society revenue in the United States. 10.The civil society sector is growing at a slower rate than the private business sector.
41 AVERAGE ANNUAL GROWTH OF NPIS vs. TOTAL ECONOMY, 5 COUNTRIES 16.6% NPI SECTOR TOTAL ECONOMY 8.1% 4.1% 6.7% 7.0% 3.6% 6.4% 6.2% 5.4% 5.3% 4.4% 5-COUNTRY AVERAGE CZECH REPUBLIC BELGIUM CANADA UNITED STATES % JAPAN Does not include volunteer labor
42 GLOBAL CIVIL SOCIETY, VOLUME 2
43 UN HANDBOOK ON NONPROFIT INSTITUTIONS
44 ILO MANUAL ON THE MEASUREMENT OF VOLUNTEER WORK
45 GLOBAL CIVIL SOCIETY & VOLUNTEERING: LATEST UN NONPROFIT HANDBOOK FINDINGS ON 16 COUNTRIES
46 FOR MORE INFORMATION LESTER M. SALAMON Website: ccss.jhu.edu
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