Impact of Government Initiatives on Social Economy & Public Service

This report provides an analysis of the key governmental initiatives from the 1990s to the present day that have shaped the social economy, highlighting the role of cooperative, not-for-profit, and voluntary organizations. It discusses three examples of third-sector organizations—charities, voluntary and community organizations, and social enterprises and cooperatives—and their pivotal support to public sector organizations, particularly during the COVID-19 pandemic. The report further examines the benefits, such as financial support and technical assistance, and limitations, including legislative changes and bureaucratic complexities, of third sector organizations working in partnership with the public sector, emphasizing cross-sectional, specialist, and strategic partnerships for addressing social and environmental issues.

Third Sector and Public
Services

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
The key governmental initiatives, between 1990’s to present day that have shaped the social
economy.................................................................................................................................1
Three examples of third sector organisations that have been pivotal to the support of public
sector organisations................................................................................................................3
The main benefits and limitations of working in a partnership with the public sector..........5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
The social economy generally comprises of the third sector of the mixed capitalist
economies that are different and distinct from the private as well as the public sectors
organisation. On the other hand, public sector organisations are the one which are management,
controlled and financed by government and or some other local agencies under state government
(Petrescu and Lambru, 2021). The current report comprises of analysis of key governmental
initiatives that has been taken place during the 1990’s till the present day and played a vital role
in shaping the social economy. Beside this, a discussion about the three examples of third sector
organisations that have been pivotal to the support of public sector organisations has also made.
At last, main benefits and limitations of working in a partnership with the public sector is also
provided in current study.
TASK 1
The key governmental initiatives
The social economy is the one that are based on some form of cooperative as well as some
not for profit along with other form of voluntary organisation rather than paid activities caries
out within the communities (Reina and Scarozza, 2021). Further, the social economy is defined
as a collection of different social objectives for which organisation comprises of cooperatives,
mutual societies, voluntary organizations, foundations, and social enterprises that are effectively
working to make it up.
 1990s- It has been find out that the since the 1980s many attempts have been made by the
government of UK to develop commonly accepted statutes for traditional social economy
entities which comprises of the co-operatives, foundations, associations and mutual
societies). Since 1980 and 1990s. It has been analysed that the limited scope of the
policies deployed by the EU and UK to promote the social economy which does not seem
to take into account the multidimensional nature of the social economy. Thus, at that time
a consequent need to develop a cross-sectorial policy framework policy is adopted by the
government of UK that is capable of fully capitalising on the overall social economy
potential (Valdovinos, 2021). Along with this, establishment of the transversal
institutional and normative links to unlock social economy potential is also made by the
government of UK in the creation of a more efficient and participatory model of goods
1

and services provision which would help in sustaining economic growth while providing
innovative responses to social needs (Omar and Halim, 2021).
 1997 – 2010- The government of UK take many initiates to shape social economy which
comprises of continuing to ensure that Structural Funds along with including the other
structural and financial support that encourage the development of the social economy.
The government of UK has mentions the promotion of the social economy as a priority in
through facilitating and ensuring the easy access to employment along with promoting
social inclusion and other efforts for working against poverty and all forms of
discrimination (Government initiatives to develop the UK social economy, 2004).
 2010 to present- Simplifying the complex employment law is made by government as
key initiatives to support expansion of social economy along with introducing sustainable
and innovative finance solution for them such as Digital Single Market policy
framework which supports their improved expansion. Along with this, as key initiative
the government also launches international social investment strategy for shaping and
supporting social economy which is a form of cross governmental strategy which aim at
attracting social investment and encourage social enterprises. This strategy of
international social investment of UK government seek to supports increased exports
and franchising by UK social economy for learning successful social sector innovations
(d’Haenens, 2021). Along with this, this key initiatives of government also consists of
ambition to ensuring more people to use their money to transform lives and encourage
economic growth which also encourage and supports social economy. This strategy has
brought a positive impact on the social economy as the survey conducted shows that
social enterprises are outstripping SMEs in turnover growth along with facilitating and
ensuring better workforce growth together with higher job creation and innovation that
leads to business optimism and enhanced start-up rates along with bringing diversity in
leadership. Further, this success and improvement in the social economy is shaped by the
key initiatives of government which consists of providing specialist supports such as
incubators facilities, impact of measurement bodies and investors. Beside this, the
government also supports the helping and engorgement of social economy by the way of
innovative legislation in support of social economy which includes community interest
company and also launces Social Value act which is considering social and
2

environmental impact of contracting with public services that effectively encourage the
procurement and operation of social economy (Paraciani and Rizza, 2021).
Three examples of third sector organisations that have been pivotal to the support of public
sector organisations
Third sector can be described as a non-governmental, non-profit voluntary organisation
which are not government firms but receive funding and commission from government agenises.
Along with this, the organisations in the third sector are tend to pursue in a specifics goal which
are mainly aligned and related with the particular form of social and political perceptive. The
three examples of third sector organisation are provided below along with analysing their pivotal
to support of public sector organisations during the outbreak:
 Charities- These are the third sector organisation whose main goal and purpose in to
improve the quality of life for the community and society to ensure their well being and
supports equality in the community. During the outbreak of COVID-19, the charities
organisation plays a vital role in re-balancing the efficiency and resilience level of the
economy by the way of providing supports and donation to help the homelessness, labour
market exclusion and other form of vulnerable groups. Further, these charitable
organisations of third sector are also making efforts to meet the urgent demand of the
mask and other protective equipment for vulnerable group at the time of COVID-19
(Social economy and the COVID-19 crisis: current and future roles, 2020).
 Voluntary and community organisations- These organisation comprises of members
from community who act as volunteers to provide grants and other needed resources with
the main aim of supporting help and meeting the needs of the society. Third sector
voluntary and community organisation of UK consist of a non-profit driven, non-
statutory and autonomous group of members who are bit get paid for running an
organisation. A vital pivot and role is being played by Voluntary and community
organisation which supports efforts of government that comprises of concentrating on
providing on the all the households and community during the covid-19 times to ensure
and provide all basic health and hygiene kits for the children and family members. Apart
from this, these voluntary and community organisations also focused on enhancing
awareness generation and advocacy programmes which supports efforts of government
and public sector bodies (Tao, 2021).
3

 Social enterprises and cooperatives- These form of third sector organisation comprises
of group of people who act as a centred enterprise that owned, controlled and run by and
for all of their members to realise and achieve a common economic, social and cultural
needs of the society. Thus, social enterprise and cooperative are member owned financial
institution that are formed to meet the social, economic and cultural means of the
members and collectives that are employee owned. During the times of Covid-19 these
social enterprise and cooperatives has played a vital role in addressing the urgent social
needs arising from covid-19 cross through providing a range of crucial services related to
health and social services. Along with this this, reliable partnership has been also made
by social enterprise with government to ensure and meet the critical aspects of
containment measures and local economic development during the times of COVID-19.
Further, Social enterprise has also supported innovative and successful business models
during the time of Covid-19 to ensure common good, social innovation and collaboration
to mitigate covid-19 crisis (Petrescu and Lambru, 2021).
The above discussion provides a justification that third sector organisation are playing a
vital role in supporting government and work of public service organisation through
supporting improved social and health care welfare for society during the outbreak of Covid-
19 and other crisis. It has been analysed that working and delivering supports for public
sector organisation would enhance the scope of third sector in contributing health and
wellbeing of society within UK (Reina and Scarozza, 2021). The various ways and forms in
which social enterprise supports public sector organisation consists of carrying out or
commencing regular research that is vital to get information about the actual and grounded
situation in the society and community to come up with improved policy and decision
making. Further, third sector organisation also supports and ensures carrying out of effective
public campaigns in order to raise public awareness and shape improved public perception
about a particular issue. For instance, during the time of Covid-19 thirds sector plays a vital
role in making communities aware about the social-distancing norms and other best practices
related with public health and hygiene along with following government guidelines
(Valdovinos, 2021).
4

The main benefits and limitations of working in a partnership with the public sector
There are various ways through which a third sector organisation comprising of social
enterprise can work in partnership with public sector which comprises of cross sectional
partnership. Adoption and implication of the cross sectional partnership supports an effective
mean that ensure relatively intensive and long term interactions between the organisations that
are form out of two sectors comprises of public and third sector. The implication of cross
sectional partnership aims at and lead to effective ways through which third and public sector
can effectively address the social and environmental problem based on future in management
along with support from research and improved practises (Omar and Halim, 2021). Apart from
this, Specialist partnership that are effective in addressing a particular issue could also be an
effective way of working together with public sector. Beside this, strategic partnership can also
be adopted by third sector to work with public sector as intended priorities and co-ordinator for
welfare of society. Open ended partnership and equal partnership are also effective ways for
working together with public sector based on fixed terms and conditions of partnership along
with ensuring equal access to power and equal rights (d’Haenens, 2021).
Benefits of working in a partnership with the public sector
The main benefit that would be encountered by third sector while working in partnership
with the public sector comprises of the fact that it mitigates and reduces the financial issues and
ensures higher monetary funds and financial supports to carry out their operation and research in
more effective manner. Apart from this, implication of partnership of Third sector with public
sector also ensures higher technical assistance and more innovative strategies and policy making
to effectively work towards bring equality and wellbeing in the society (Paraciani and Rizza,
2021). Beside this, a working together of third and public sector also ensure access to highly
talented and skilled people along with improved investment and supports from research and
development that ensures improved ways and manner of conducting research and learning
awareness programmes thus, improves the efficiency and scope of the social welfare.
Limitations of working in a partnership with the public sector
Changes in certain legislation along with complex policy and disclosures that is needed
and initiated between third and public sector is the biggest limitation of working in partnership
with public sector. Along with this, implication of proper rules and bureaucracy management is
also a big limitation and challenges faced while working in partnership with the public sector
5

organisation. Further, lack of understanding about the other sector’s priorities and gaining
effective understanding that takes time and efforts are also the limitation faced in working
together with public sector (Tao, 2021).
CONCLUSION
On the basis above report, a conclusion can be made that the third sector is basically an
umbral term that cover a range of organisation that are having different structures and purposes
which are neither belong to public sector nor owned by private sector. Further, a summarisation
can be made that many initiatives are being taken by government for encouraging and supporting
social economy which consists of Social Value act that is considering social and environmental
impact of contracting with public services that effectively encourage the procurement and
operation of social economy. Along with this, it has been concluded that charities form out a
vital example of third sector which supports equality and social welfare. At last, a conclusion can
be made that many advantages like enhanced financial supports and improved innovation level
are key befits of working in partnership with public sector.
REFERENCES
Books and journal
d’Haenens, L., 2021. European public television in search of a mission in an era of economic and
technological change. In Western Broadcasting at the Dawn of the 21st Century (pp. 109-
124). De Gruyter Mouton.
Omar, A.M. and Halim, A., 2021. Whole-of-Nation Approach in COVID-19 Management: The
Case of Brunei Darussalam. In Global Perspectives on Change Management and
Leadership in the Post-COVID-19 Era (pp. 35-55). IGI Global.
Petrescu, C. and Lambru, M., 2021. Using evidence in shaping disability policy in Romania: the
case of sheltered workshops. Evidence & Policy: A Journal of Research, Debate and
Practice.
Reina, R. and Scarozza, D., 2021. Human Resource Management in the Public Administration.
In Organizational Development in Public Administration (pp. 61-101). Palgrave
Macmillan, Cham.
Tao, Y., 2021. Towards network governance: educational reforms and governance changes in
China (1985–2020). Asia Pacific Education Review, pp.1-14.
Valdovinos, J., 2021. Transnational Corporations in Urban Water Governance: Public-private
Partnerships in Mexico and the US. Routledge.
Online:
6

Government initiatives to develop the UK social economy. 2004. [Online] Available Through:<
https://apo.org.au/node/475>.
Social economy and the COVID-19 crisis: current and future roles. 2020. [Online] Available
Through:< https://www.oecd.org/coronavirus/policy-responses/social-economy-and-the-
covid-19-crisis-current-and-future-roles-f904b89f/ >.
7