Measuring the Third Sector in Europe: Why Should Stakeholders Care? Brussels October 13, 2015 Presenter(s) Lester M Salamon affilia/on(s) Johns Hopkins University SAIS Bologna Centre
WP2: Conceptualizing the Third Sector TSI OBJECTIVES To measure the size and impact of the third sector in its European manifesta>ons But stock- taking presupposes conceptual clarifica>on And taking account of cross- country, cross- regional, cross- cultural, and cross- sector varia>ons.
Measuring the Third Sector in Europe Why Measure the Third Sector? WHY MEASURE THE THIRD SECTOR? A Huge Economic Force Opera>ng in Key EU Program Areas
Measuring the Third Sector Compara>ve Nonprofit Sector Project Countries Canada United Kingdom Germany Denmark France Sweden Belgium The Netherlands Finland Norway Italy Switzerland Austria Czech Republic Poland Romania Slovakia Russia United States Ireland Hungary Mexico Spain Portugal Japan Colombia Morocco Turkey Israel Ghana Lebanon India Korea The Philippines Brazil Egypt South Africa Chile Argen/na Peru Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu). Kenya Thailand Pakistan Tanzania Uganda Australia New Zealand
Measuring the Third Sector Nonprofit Sector Revenue (41 countries) vs. 12 Largest Economies, 2012 United States China India Japan Nonprofit sector (41 countries)* Russia Germany France Brazil United Kingdom Mexico Italy Korea, Republic of 2,022 2,017 1,540 Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu). 2,372 2,366 2,333 3,373 3,349 4,487 4,109 4,793 12,471 BILLIONS OF DOLLARS(PPP basis) 15,685 *Es/mated Data sources: GDP - World Bank; Nonprofit revenue - JHU/CCSS
Measuring the Third Sector Employment in NPIs vs. Largest Firms, 37 Countries CIVIL SOCIETY ORGANIZATIONS* 48 MILLION LARGEST PRIVATE COMPANIES 4 MILLION *Estimated * Data Source: Including sources: Johns volunteers GDP Hopkins - World Center and Bank; religious for Nonprofit Civil Society worship revenue Studies organization - JHU/CCSS (ccss.jhu.edu). workforce, where available.
Measuring the Third Sector NPI Workforce* as a Share of Economically Ac>ve Popula>on, 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 Argen>na Finland Chile Spain Italy 2.5% 2.2% 2.8% 2.6% 2.6% 2.8% 2.4% 3.3% 3.2% 3.2% 7.0% 5.6% 4.5% 3.7% 3.1% 2.4% 4.3% 1.5% 1.8% 2.2% 6.4% 2.7% 5.1% 4.9% 3.0% 6.2% 5.9% 5.9% 2.6% 4.3% 4.3% 5.8% 3.9% 6.4% 5.0% 5.5% 3.0% 3.1% 2.9% 5.9% 5.7% 1.5% 6.9% 6.8% 8.6% 7.3% 9.0% 8.0% 7.8% 10.1% 9.7% 10.3% 2.3% 3.2% 8.8% 9.2% 9.0% 8.8% 3.4% 9.6% 9.6% 5.8% 1.5% 11.0% 10.9% 12.3% 11.8% 13.1% 15.9% Paid workers Volunteers * Including volunteers and religious worship organiza/on workforce, where available. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
How Measurement Can Help Third Sector Boost visibility Enhance public respect Increase sector consciousness Expand policy influence Akract funding
WP2: Conceptualizing the Third Sector THE CHALLENGE Considerable conceptual ambiguity Diverse types of en>>es Mul>ple terms and concepts Diverse legal treatment Varied cultural tradi>ons
WP2: Conceptualizing the Third Sector for-profit businesses government for-profit businesses NPIs family ACTIVITY WITHOUT PAY activity without pay family
WP2: Conceptualizing the Third Sector TWO SETS OF TENTATIVE DEFINING FEATURES 1.For ORGANIZATIONAL components of TS 2.For INFORMAL AND INDIVIDUAL components of TS
WP2: Conceptualizing the Third Sector TENTATIVE DEFINING FEATURES I ORGANIZATIONAL COMPONENTS 1) Organiza>ons, formal or informal 2) Private, i.e., ins>tu>onally separate from govt. 3) Self- governing, capable of ac>ng on own authority 4) Voluntary, without compulsion 5) Totally or significantly limited from distribu>ng profit
WP2: Conceptualizing the Third Sector LIMITED PROFIT DISTRIBUTION MEANS 1) Full prohibi>on on distribu>on of profit, or 2) If distribu>on of profit permiked, must be: Legally binding social mission + 50% limit on profit distribu/on + Legally binding capital lock, + either: - Employ or serve certain % of those with special needs, OR - No profit distribu/on in rela/on to capital invested or fees paid
WP2: Conceptualizing the Third Sector TENTATIVE DEFINING FEATURES II INDIVIDUAL ACTIVITY 1) Ac>vity primarily for benefit of others, not self 2) Carried on for a meaningful period of >me 3) Not- for- Pay (reimbursement of expenses OK) 4) Only for persons outside one s household+ next of kin 5) Noncompulsory
WP3 Advancing the Measurement of the Third Sector
Plen>ful data on Third Sector in European Sta>s>cs, BUT: Some units are missing Measuring the Third Sector The Challenge Volunteering out of bounds or valued at cost Blurring among in- scope en//es themselves Major in- scope en//es buried in other sectors Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
WP3: Advancing Measurement of the Third Sector INVISIBLE IN PLAIN SIGHT IN OFFICIAL STATISTICS TYPE OF INSTITUTIONAL UNIT Non- financial corpora>ons S.11 SECTORS OF THE SYSTEM Financial Corpora>ons S.12 Government S.13 Household S.14 NPISH S.15 Corpora>ons NfC FC Government G Household H NPIs N S.11 N S.12 N S.13 N S.14 N S.15 Coopera>ves/mutuals Social enterprise CM S.11 CM S.12 CM S.15 SE S.11 SE S.12 SE S.15
Step 1: NPIs 2003: UN NPI Handbook Measuring the Third Sector A Sta>s>cal Revolu>on Ø Adopts JHU defini/on of NPIs Ø Official call for Satellite Account on NPIs Ø Recognizes importance of volunteer work Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Measuring the Third Sector The Nonprofit Ins>tu>on (NPI) Component Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Step 1: NPIs 2003: UN NPI Handbook Measuring the Third Sector A Sta>s>cal Revolu>on 2008: Revised 2008 System of Na7onal Accounts (SNA) Ø Calls for separate repor/ng on NPIs (sub- sectoring) Ø Adds dedicated chapter on NPIs Ø Reinforces support for coverage of volunteer work 2016: Revised UN NPI Handbook to be released Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Measuring the Third Sector Countries that have Implemented* the UN NPI Handbook Australia* Belgium* Brazil* Canada* Czech Republic* France* Israel* Japan* Kyrgyzstan* Mexico* Morocco* Mozambique* New Zealand* Norway* Philippines* Portugal* Thailand* United States* *as of May 2015 Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu). * Satellite account released
Measuring the Third Sector Civil Society Workforce, Paid vs. Volunteer, 34 Countries Volunteers 44% Paid workers 56% Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Measuring the Third Sector The Volunteer Component Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Step 1: NPIs 2003: UN NPI Handbook 2008: Revised 2008 System of Na7onal Accounts (SNA) 2010: Revised 2010 European System of Accounts (ESA) 2015: Revised UN NPI Handbook Step 2: Volunteers Measuring the Third Sector A Sta>s>cal Revolu>on 2011: ILO Manual on the Measurement of Volunteer Work 2013: ILO Adop>on of New Defini>on of Work Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Measuring the Third Sector ILO Manual Implementers Bangladesh Belgium Brazil Hungary Ireland Italy Norway Poland Portugal South Africa Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Step 1: NPIs 2003: UN NPI Handbook 2008: Revised 2008 System of Na7onal Accounts (SNA) 2010: Revised 2010 European System of Accounts (ESA) 2015: Revised UN NPI Handbook Step 2: Volunteers Measuring the Third Sector A Sta>s>cal Revolu>on 2011: ILO Manual on the Measurement of Volunteer Work 2013: ILO Revised Regula>on on Work Step 3: Third Sector Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Measuring the Third Sector The Challenge Key sta>s>cal machinery already accepted BUT: Implementa/on not universal in Europe Eurostat chose not to incorporate sub- sectoring provisions of 2008 SNA in ESA Stats community not bought in to TS concept Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
WP3: Data Availability Matrix TSI Country Nonprofits Other institutions Volunteering NPISH NPIs Cooperatives Social enterprises In All scope All In scope Austria 1G(2010) 3WR(2001) 5W(2010) Croatia 1G(2010) NA Thru Orgs France 1G(2010) 3WR(2002), 5WR(2012) 5W(2010) 5 4 4 Netherlands 1G(2010) 3WR(2002), 5WR(2012) 5W(2010) 5 5? Norway 1G(2010) 3WR(2004); 1FWR(2012) none none 7(2012), 4 4 Poland 1G(2010) 3WR(1997), 2WR(2010) 5W(2010) 7(2010), 4 7(2010), 4 Spain 1G(2010) 3WR(1995) 5W(2010) 4 4 U.K. 3WR(1995), 5 5W(2010) 5, 4 5, 4 Data Sources Variables 1 - National accounts statistics (year) latest avail W - Workforce (paid staff) 2 - Other Govt reports (EU, national) G - Value Added Gross 3 - CNP projections (xxxx) original data year R Sources 4 - Harmonised European Time Use Survey (HETUS) 5 - Nongovtl reports on NPIs, coops, volunteers 6- Regression estimate 7- ILO Volunteering Survey implementation Direct
WP3: Data Availability Matrix Other EU Countries Nonprofits Other institutions Volunteering NPISH NPIs Cooperatives Social enterprises Thru orgs Direct All In scope All In scope Belgium 1G(2010) 3WR(2004); 1WR(2012) 5W(2010) 4 Bulgaria 1G(2010) 5W(2010) 4 Cyprus 1G(2010) 5W(2010) Czech Repub 1G(2010) 3WR(2004); 1WR(2009) 5W(2010) 1(2009) Denmark 3WR(2004) 5W(2010) Estonia 1G(2010) 5W(2010) 4 4 Finland 1G(2010) 3WR(1996) 5W(2010) 4 4 Germany 3WR(1995) 5W(2010) 4 4 Greece 1G(2010) 5W(2010) Hungary 1G(2010) 3WR(2003) 5W(2010) Ireland 3WR(1995) 5W(2010) 7? Italy 1G(2010) 3WR(1999); 2WR(2013) 5W(2010) 7(2013), 4 7(2013), 4 Latvia 1G(2010) 5W(2010) 4 Lithuania 1G(2010) 5W(2010) 4 Luxembourg 1G(2010) 5W(2010) Malta 1G(2010) 5W(2010) Portugal 1G(2010) 3WR(2002), 1WR(2006) 5W(2010) Romania 1G(2010) 3WR(1995) 5W(2010) Slovakia 1G(2010) 3WR(1996) 5W(2010) Slovakia 1G(2010) 3WR(1996) 5W(2010) Slovenia 1G(2010) 5W(2010) 4 4 Sweden 1G(2010) 3WR(2002) 5W(2010) 4 4
EU countries have not built welfare states Measuring the Third Sector Conclusion: A Win- Win Partnership for European Stats Agencies and Third Sector Actors The have built welfare partnerships relying heavily on third- sector groups But half of this partnership is invisible Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
Measuring the Third Sector Conclusion: A Win- Win Partnership for EC To make this partnership work beker, EC and member states need beker TS data. We have built the sta>s>cal machinery to secure such data. We need stakeholder help to get this machinery implemented. Source: Johns Hopkins Center for Civil Society Studies (ccss.jhu.edu).
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