Public Governance Institute: Leading Public Sector Change
Public Governance Institute: Leading Public Sector Change






       
     
 
 
21st-Century Governance: Social Sector

Voluntary associations are an instrumental vehicle for change. By common practice, one thinks of these organizations as dedicated to helping people change. Parents send their children to school to become more literate and people go to hospitals to get well.

In an Atlantic Monthly series titled, "The Age of Social Transformation," Peter Drucker offers examples and explanations as to why social-sector organizations succeed where public or private-sector groups fail.

It all boils down to the distinction in the relationship they have with their clients. Because social-sector groups are not dependent on profitably selling products or services, they can strongly advocate specific behaviors based on their beliefs. They don't change their message or behavior just to meet their client's desires. Because they can't use force, a power available only to the public sector, social-sector organizations can't force people to change. In other words, people must want to change and voluntarily take the advice offered by the social-sector players.

In recent decades, the historic role of the non-profit social-sector organizations has eroded. The public sector usurped their role and was even abetted by some social-sector leaders. Fund raising is hard for schools, hospitals, churches and feeding programs. When government came along offering to address the same problem as the financially-stretched social leader, the latter too often assumed the motivations, intent, and results would be comparable and desirable. Only later did social-sector leaders learn that when government gives an alcoholic money it cannot insist he stop his destructive behavior. This has turned the social-sector leader's uninformed optimism into informed pessimism.

Some citizens think that it is good that the public sector has usurped the social sector since they believe the government (public sector) or the free enterprise (private sector), can do the job better. Others hold that experience has proven this thinking false and put their belief in the success of the social-sector as the only institutional framework capable of bringing about real change in people.

Government may be able to throw more money at a problem than social-sector groups, including the family, but does it really succeed at helping people change? Since the welfare state's invention by Bismarck in the 1880s, various levels of public-sector commitment to providing the services needed in the social sector have been tried. The extreme experiments of communist nations have been declared failures. But in other developed nations, large portions of national resources continually move to these needs. Yet, the public assessment is that here too, the experiments have failed as education results decline, crime persists, income disparity grows, and chemical abuse increases.

Private enterprise may be more efficient, but is it effective? Though the modern experiments (private-enterprise schools or drug-treatment programs) are not as old, there is some indication that capitalist efforts to resolve social problems may be more efficient than public-sector efforts. But, still there is no evidence that private-sector solutions are as effective as social sector efforts launched by families, churches and the like. Entrepreneurially-driven schools may be more efficient than public schools, but they still cost more and produce poorer results than religion-based schools.

Is the social sector a panacea? No way. As in the other sectors, failure prevails in the social sector. History has shown that excessive strength in the social sector also fails to meet the needs addressed by the public and private sectors. Church-run economies fail. Church-run armies fail. No single sector has succeeded at delivering the total needs of a society. Balance between all three sectors seems to be the desired state.

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