ISTR Fourth International Conference Dublin, Ireland / July 5-8, 2000 The Third Sector: For What and For Whom?

Sigrid Betzelt

The analysis is the result of a nationwide survey carried out by the German team of the NETS-Project. The findings are on the one hand based on quantitative data of standardized questionnaires answered by a wide range of different TSO across the Federal Republic, and on the other hand on expert interviews concentrating on more qualitative aspects, especially regarding Third Sector policies.

Besides some general information about the current demographic and economic situation in Germany ten years after the unification the main characteristics of the German Third Sector will be outlined concerning its legal forms, major fields of activity and the general principles constituting its relationship to the state.

The main characteristics of the Third Sector's economic structure will be described, showing clear correlations between legal form, field of activity, amount of budget and composition of income resources. A certain dichotomy within the TS can be observed both regarding the economic size of NPOs and their contribution to gainful employment. The poles of this dualism are low-budget, mostly privately financed organizations of the 'culture/leisure' field representing low-level employment, and higher-budget, mostly publicly financed TSO in the 'social services/health care' and 'education' area absorbing the biggest share of gainful employment.

Though labour intensity is comparatively high in some parts of the German TS exclusively voluntary, unpaid work is persistently predominating. Generally, the Third Sector's employment growth of the past decades seems to be slowing down or even coming to an end, particularly in those branches highly depending on public resources. Moreover, a certain trend of flexibilisation of the work force has to be stated, forced by a reduced flow of (mainly public) income and a stronger competition within and outside the TS.

A special focus is set on public job promotion schemes, playing a crucial role for employment especially in East German TSOs - with all their positive and negative impacts. On the basis of these data the question of employment perspectives and the main issue of new opportunities for job creation is discussed. The key factors for gainful employment

are analysed as well as the main obstacles for new labour - the latter to briefly mention: undercapitalization, legal restrictions and 'ideological barriers' within NPOs.

Though the future prospects do not seem to give cause for euphoria some new fields for job creation in the context of societal needs for new personal services emerged throughout the research. In order to use these potentials and to modernize the framework of the German TS a variety of proposals for public policies has been elaborated. These recommendations aim on the one side at a stronger economic basis of the non-profit sector in order to become more independent from diminishing public resources. On the other hand, the legal framework of the TS has to be thoroughly modernized and cleared from obsolete regulations hindering the 'social economy' in flourishing, thus achieving European standards in some respects. Yet, not a simplifying plea for 'deregulation' concludes the research. Rather, the importance of a more long-term and reliable employment promotion policy is emphasized as a corner-stone for the Third Sector's contribution to solving the unemployment problem.

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