POLITICAL ECONOMY OF NONPROFIT ORGANIZATIONS


                            USP 510/610 PAP 510

                                Spring 1996
                       Wednesday 6:40-9:20 Cramer 187
                               Charles Heying
                                Room 335 UPA
                      Office Hours: Tuesday 3:00-5:00
                   725-8416 (Office) charlesh@upa.pdx.edu

   Have you ever wondered why humans perform acts of compassion? Have you
   considered the connection between social trust and civil society? In
   Political Economy of Nonprofit Organizations, we examine theories of
   altruism, trust, and the role of nonprofit organization in building
   social capital. We consider the connection between wealth and social
   responsibility, and between elite status and social reproduction. We
   discover the broad scope of nonprofit activity in the economy, study
   the costs and benefits of the tax-free status of nonprofits, and
   examine the remarkable interdependence of government and nonprofit
   organizations in the modern state. We discuss the implications of
   "shadow governments" such as nonprofit development authorities that
   possess pseudo-governmental powers, and the role of nonprofit interest
   groups and think tanks in shaping public policy. Finally, we survey
   the dramatic rise of non-governmental organizations in developing
   countries and discuss the future role of nonprofit organizations in a
   jobless economy.

                           METHOD OF INSTRUCTION

   You will be assigned approximately 100-120 pages of readings per week.
   Each session will begin with a short period of small group
   deliberation. Each group will be assigned part of the readings for
   which you will be asked to identify key words, phrases, and concepts.
   This is a time to compare and summarize the notes you have taken on
   the readings. After a short period of deliberation, each group will
   report on their discussion and critique the readings.

   Periodically during the term, you will be asked to report on the
   progress of your research project and on your written observations of
   ARNOVA listserv discussions (see assignments).

                                ASSIGNMENTS

   Seminar Notes: Each week you will submit a brief note to me via email
   (if you do not already have an email address, you should establish an
   account immediately). These weekly notes will be used to suggest areas
   of discussion for the seminar. The note should be approximately 1-2
   pages and arrive by Tuesday evening. The first part of the seminar
   note will be in the form of questions which the readings suggest to
   you. You should write at least one question for each of the readings.

   The second part of the seminar note will include your comments on the
   ARNOVA-L listserv postings which you will be monitoring. Because your
   first seminar note is due next Tuesday, you will need to subscribe to
   ARNOVA-L within the coming week (see the "Listserv and Listserv
   Commands" section for information on how to subscribe).

   ARNOVA-L primarily serves members of the Association for Research on
   Nonprofit Organizations and Voluntary Action (ARNOVA). Its purpose is
   to promote discussion and facilitate the exchange of information among
   its academic and professional associates. ARNOVA-L has over 400
   members world-wide, and of those, about 150 are graduate students.

   Research Portfolio: Your second assignment (due April 17) will be to
   identify library and electronic resources for future use on your
   research project. I especially encourage you to seek out electronic
   resources such as databases available on the Portals system and the
   many internet web sites. Your portfolio should identify at least 8
   sources. Each entry should be listed on a separate page and identify
   in separate paragraphs and box style the Source, Location,
   Availability, Abstract. Bring three copies of the portfolio to the
   seminar: one for yourself, one to be graded, and one to be combined
   with others to create a master portfolio which will be put on reserve.

   Research Project: Your third assignment (due June 5) will be a
   research project. I will be looking for a project of some substance,
   most likely one involving some type of data collection and analysis.
   The paper will include (1) a cover page, (2) an introduction, (3) a
   review of relevant literature, (4) a statement of the question you are
   examining and a discussion of how it relates to the literature you
   have reviewed, (5) a methodology section, (6) your analysis, (7) your
   conclusion, and (8) a bibliography. I suggest that you use a
   parenthetical citations and that you consult a standard writing manual
   for the appropriate technique. I encourage you to visit with me (in
   person, phone, or email) about the project before you get too far
   along.

                                 EVALUATION


   Research Portfolio: 20%
   Research Project: 40%
   Seminar notes and discussion participation: 40%

                               Required Text

   Salamon, Lester M.Partners in Public Service: Government-Nonprofit
   Relations in the Modern Welfare State. Baltimore: Johns Hopkins
   University Press, 1995.

                              Reserve Readings

   Other than the required text and the material handed out in the first
   session, all other readings have been placed on two-hour reserve at
   the library.

                                  SCHEDULE

   Week 1: Introduction

   Week 2: Altruism, Trust, and Cooperation
          Implicit in the literature on nonprofits is the assumption that
          altruism is the nascent motive for charitable activity,
          therefore, it is proper to begin our study by asking why humans
          perform acts of compassion. In the readings for our first week,
          Kristen Monroe (1994) reviews the burgeoning literature in
          economics, biology, and psychology which attempts to reconcile
          altruistic behavior with self interest norms. In a related
          discussion, Douglas J. Den Uyl (1993) considers altruism in
          light of the conflict of justice with charity.

          While questions of altruism focus primarily on individual
          behavior, the distinct but closely related phenomena of trust
          and cooperation focus on the social and organizational
          consequences of trusting behavior. To introduce you to this
          fascinating literature, we examine three readings from an
          edited volume by Diego Gambetta (1988).

          I advise you to avoid the frustration that often attends a
          sudden immersion into nuanced discussions of behavior, ethics
          and social philosophy. Please to not expect to know and
          understand all of what you read. My intention is to introduce
          you to some of the more interesting theoretical questions which
          underlie the charitable impulse. I believe that the relevance
          of these questions will become apparent as the course
          progresses.


          Monroe, Kristen Renwick. "A Fat Lady in a Corset: Altruism and
          Social Theory", American Journal of Political Science, Vol 38,
          No. 4, November 1994, Pp. 861-93.


          Den Uyl, Douglas J. "The Right to Welfare and the Virtue of
          Charity", in Altruism, Ellen Frankel Paul, Fred D. Miller, Jr.
          and Jeffrey Paul, eds., Cambridge: Cambridge University Press,
          1993, Pp.192-224


          Gambetta, Diego. "Mafia: the Price of Distrust", in Trust:
          Making and Breaking Cooperative Relations, Diego Gambetta, ed.,
          New York: Basil Blackwell Ltd., 1988, Pp. 158-75.


          Hart, Keith. "Kinship, Contract, and Trust: the Economic
          Organization of Migrants in an African Slum", in Trust: Making
          and Breaking Cooperative Relations, Diego Gambetta, ed., New
          York: Basil Blackwell Ltd., 1988, Pp. 176-93.


          Gambetta, Diego. "Can We Trust Trust", in Trust: Making and
          Breaking Cooperative Relations, Diego Gambetta, ed., New York:
          Basil Blackwell Ltd., 1988, Pp. 213-38.

   Week 3: Civic Engagement, Social Capital and Institutional Performance

          Alexis de Tocqueville was one of the first to observe the
          critical role of civic associations in supporting democratic
          institutions. Readings from his Democracy in America are de
          rigueur for students of nonprofit organizations. In the
          tradition of Tocqueville, Robert Putnam (1993) provides
          compelling evidence for the relationship between traditions of
          civic activity and progressive democratic institutions in his
          comparative study of regional governments in Italy. In a
          subsequent work, Putnam (1995) makes the controversial claim
          that the once vibrant tradition of civic engagement in the U.S.
          is now in decline and suggests that the outcome for democratic
          governance and civil society are potentially ominous.

          These readings engage us in thinking about the connection
          between nonprofit organizations and political and economic
          development. They also connect us with the readings of the
          first week and suggest questions about the social and
          institutional implications of altruism, trust and social
          justice. Is it possible, for example, for a commercial republic
          to survive on self-interest, or is it largely dependent on a
          reserve of social trust fostered by institutions such as
          family, civil government, and nonprofits? Does the creative
          destruction of unfettered capitalism weaken the fabric of
          trust, justice and charity on which it is so dependent?


          Tocqueville, Alexis de. Democracy in America, Volume II, New
          York: Alfred A. Knopf, 1966, Pp. 106-24.


          Putnam, Robert D. Making Democracy Work: Civic Traditions in
          Modern Italy, Princeton, NJ: Princeton University Press, 1993,
          Pp. 3-15, 83-120, 163-85.


          Putnam, Robert D. "Tuning In, Tuning Out: The Strange
          Disappearance of Social Capital in America", PS: Political
          Science and Politics, Vol 28, December 1995, Pp. 664-683.

   ARNOVA list serve discussion, selected comments (15 pages)


          Charles Heying 11-13-95 (opening remarks)
          Robert D. Putnam 11-14-95 (response)
          Charles Heying 11-16-95 (reply)


   Suggested: For anyone wishing to follow current developments in this
   debate you might want to check out Andrew Greeley's homepage and in
   particular his "work in progress" on religion and volunteering. The
   following address will get you direct access to Greeley's article. A
   full text version of Robert D. Putnam's "Bowling Alone", the article
   in the Journal of Democracy which first stimulated the "decline of
   social capital" discussion, and an interview with Putnam about his
   work. is available at .

   Week 4: Philanthropy and Social Surplus

   In market societies, individual entrepreneurs and corporations are
   permitted to retain a large measure of the economic benefits of the
   social and technical innovations to which they have won exclusive
   claim. From an individualist perspective, this wealth has no social
   aspect and can be used with impunity. From a communal perspective,
   this surplus is a social savings account entrusted to a civic elite to
   invest in socially responsible activities. But what has been the
   result of this social experiment with wealth accumulation? Have elites
   simply become prolifagate consummers or have they invested their
   surplus in community building activities? Has the social surplus
   provided venture capital for social innovation or have elites used
   philanthropy to solidify social caste and marginalize alternative
   values? Is this a case of self-interest aligning with social good or
   self-interest defining the social good? Can we possibly know? Does it
   matter?


          Carnegie, Andrew, "The Gospel of Wealth" in The
          Responsibilities of Wealth, Dwight F. Burlingame, ed.,
          Bloomington and Indianapolis: Indiana University Press, 1992,
          Pp.1-31.


          Riley, Jonathan "Philanthropy Under Capitalism", in The
          Responsibilities of Wealth, Dwight F. Burlingame, ed.,
          Bloomington and Indianapolis: Indiana University Press, 1992,
          Pp. 66-93.


          Knight, Louise W. "Jane Addams's Views on the Responsibilities
          of Wealth" in The Responsibilities of Wealth, Dwight F.
          Burlingame, ed., Bloomington and Indianapolis: Indiana
          University Press, 1992, Pp. 118-137.

   Week 5: Nonprofits, Civic Elites, and Social Reproduction

   This week's readings form a necessary complement to the theoretical
   musings on the reponsibilities of wealth. As we have discovered,
   philanthropy is not easily separated from self-interest. Gifts grant
   power to the giver. While nonprofit institutions in the arts,
   education, sciences, and social services are the primary beneficiaries
   of philanthropy, they are also the institutions which define culture,
   establish professional domains, create class distinctions, and confer
   status to wealthy contributors. Preferential access to these networks
   of wealth and power infuse elite progeny with the cultural capital
   necessary for the reproduction of elite status.

   Sorting out the intricacies of these linkages and weighing the
   democratic dilemma of elitism against the benefits of social
   innovation are not well suited to a few short readings. Nevertheless,
   a topic so central to the theme of this course must at least be given
   a proper introduction. We begin that introduction with a reading from
   Kathleen McCarthy's (1982) sympathetic discussion of noblesse oblige
   in Progressive era Chicago. We follow this with Peter Dobkin Hall's
   (1992) classic description of civil privatism in Boston. Each of these
   are examples of what Peter Dobkin Hall describes as "Cultures of
   Trusteeship". While McCarthy follows the transformation of trusteeship
   in one location over time, Hall compares traditions of civic
   philanthropy primarily across regions. Both, however, illustrate how
   philanthropic institutions became vehicles for the social construction
   of reality.

   The historical essays by McCarthy and Hall are complimented by three
   articles which more explicitly consider theories of social
   reproduction. The first, is Jay McCleod's (1987) brief and accessible
   overview of social reproduction theory. The second, Paul DiMaggio's
   (1986) analysis of the institutional creation of high culture in
   Nineteenth-Century Boston, meshes nicely with the Hall (1992) reading.
   Finally, Pierre Bourdieu's (1986) often cited "Aristocracy of Culture"
   introduces his theory of cultural capital.


          McCarthy, Kathleen D. Noblesse Oblige, Chicago: University of
          Chicago Press, 1982, Pp. ix-xiii, 99-148


          Hall, Peter Dobkin, Inventing the Nonprofit Sector: Essays on
          Philanthropy, Voluntarism, and Nonprofit Organizations,
          Baltimore: Johns Hopkins University Press, 1992, Pp. 170-206.


          MacLeod, Just Ain't No Makin' It": Leveled Aspirations in a
          Low-Income Neighborhood, Boulder, CO: Westview Press, 1987, Pp.
          9-22.


          DiMaggio, Paul J. "Cultural Entrepreneurship in
          Nineteenth-Century Boston", in Nonprofit Enterprise in the
          Arts: Studies in Mission and Constraint, Paul J. DiMaggio, ed.,
          New York: Oxford University Press, 1986, Pp. 41-61.


          Bourdieu, Pierre "Aristocracy of Culture" in Distinction: A
          Social Critique of Judgement and Taste, Cambridge: Harvard
          University Press, 1984, Pp. 11-17.

   Week 6: Missing Values

   Until relatively recently the economic importance of the nonprofit
   sector was unrecognized and largely unreported. Scholars in the
   nonprofit sector have attempted to correct this by developing new
   measures and assessments of economic contributions and voluntary work.
   Despite these efforts, traditional indicators of economic growth and
   prosperity such as the GDP persist in ignoring the positive
   contributions of non-market production to general welfare. The bias of
   these measures reflects larger problems of value orientation in widely
   accepted measures of progress.

   In this weeks readings, we get an overview of the controversy through
   articles which appeared in The Atlantic Monthy and the New York Times.
   It was the Times' article which stimulated the discussion on the
   ARNOVA list serve. This discussion was important, not only because it
   gave economists a chance to mount a defense, but also because it
   uncovered the sources for the final two readings, Waring's (1988)
   caustic critique, If Women Counted, and Daly and Cobb's (1994) For the
   Common Good. In the selections from the later, we get a better sense
   of the structure the authors' arguments and in their Appendix, an
   outline of what they call the Index of Sustainable Economic Welfare.


          Cobb, Clifford; Halstead, Ted; and Rowe, Jonathan. "If the GDP
          is Up, Why is America Down?" The Atlantic Monthly, October
          1995, Pp. 59-78.


          Hershey, Robert D., Jr. "Statistic that Gets No Respect", New
          York Times, Business Day, Tuesday, December 19, 1995, C1.

   ARNOVA list serve discussion, selected comments (10 pages)


          Charles Heying 12-20-95 (opening remarks)
          F. Ellen Netting 12-20-95 (response)
          Mike Krashinsky 12-21-95 (response)
          Roland Kushner 12-21-95 (response)
          Charles Heying 12-21-95 (reply)
          Joy Hahn 12-21-95 (response)
          Mike Krashinsky 12-22-95 (reply)
          Putnam Barber 12-23-95 (response)

   Waring, Marilyn. If Women Counted: A New Feminist Economics, San
          Francisco: Harper, 1988, Pp. 74-91.

   Daly, Herman E.; Cobb; John B., Jr. For the Common Good: Redirecting
          the Economy toward Community, the Environment, and a
          Sustainable Future, Second Edition, Boston: Beacon Press, 1994.
          Pp. 62-84, 138-158, 443-460.

   Week 7: Economic Models of Nonprofit Organizations

   The most theoretically elegant explanations for the existence of the
   nonprofit sector have been developed by economists. In this week's
   readings, Henry Hansmann (1987) provides an overview of the diverse
   areas which economists have attempted to apply their theories. Burton
   Weisbrod (1988) compares the institutional roles of all three sectors
   and in a case study of long-term care facilites finds support for the
   idea that where information about quality of service is difficult to
   establish, nonprofits are the preferred insititutional form. Steinberg
   and Gray (1993) revisit the seminal theories of Hansmann.


          Hansmann, Henry "Economic Theories of Nonprofit Organizations"
          in The Nonprofit Sector: A Research Handbook, Walter W. Powell,
          ed., New Haven: Yale University Press, 1987. Pp. 27-42.


          Weisbrod, Burton. The Nonprofit Economy, Cambridge, MA: Harvard
          University Press, 1988, Pp. 1-58, 142-159.


          Steinberg, Richard and Gray, Bradford H. " 'The Role of
          Nonprofit Enterprise' in 1993: Hansmann Revisited", Nonprofit
          and Voluntary Sector Quarterly, Vol. 22, No. 4, Winter 1993,
          Pp.297-316.

   Week 8: Partners in Public Service: Government, Nonprofit Relations in
   the Modern Welfare State

   When former President Reagan argued that welfare functions of the
   state should be returned to churches and private philanthropy and that
   an upsurge in voluntary support would compensate for the reductions of
   the welfare state, he demonstrated his naivet about the extent of
   nonprofit and public sector inter-dependence. In this reading, Lester
   Salamon (1995) examines the evidence and implications from his seminal
   study at the Urban Institute on the potential impact of budget
   reductions on the nonprofit sector. In doing so, he directs our
   attention to the blurring of sectors between government and nonprofit
   activity and the historic preference in the United States for private
   provision of government services.


          Salamon, Lester M. Partners in Public Service:
          Government-Nonprofit Relations in the Modern Welfare State.
          Baltimore: Johns Hopkins University Press, 1995, Pp. 1-114

   Week 9: Interest Groups, Think Tanks, and the Shaping of Public Policy

   In the previous weeks readings, Lester Salamon described the service
   delivery aspects of the government-nonprofit partnership, a concept he
   calls "third party government". In this week's readings, we consider
   the flip side of that relationship; the cooperative (some might say
   collusive) interaction of government with political nonprofits in the
   policy formation process. In our first reading, Loomis and Cigler
   (1991) survey the growth of interest group activity, its connection to
   the expansion of government services and the evolution of interest
   group-government interaction from one of relatively closed "iron
   triangles" to the seemingly more open and pluralistic "policy
   communities". Next we read Hugh Heclo's (1977) widely cited "Issue
   Networks and the Executive Establishment." Reflecting the policy
   orientation of the American Enterprise Institute in 1977, Heclo
   highlights the problems of executive leadership when policy
   communities are dominated by technopols whose status as knowledgeable
   insiders is enhanced more by increased issue complexity than by
   solving governance problems. Finally, we consider the role of think
   tanks in shaping ideological agendas.Peschek (1987) argues that the
   rightward policy shift of the 1980's was not simply a reflection of
   societal changes but was orchestrated by business dominated think
   tanks who were attempting to forge a cohesive capitalist response to
   the economic and political disruptions of the 1970's.


          Loomis, Burdett A; Cigler, Allan J. "Introduction: The Changing
          Nature of Interest Group Politics", in Interest Group Politics,
          Third Edition, Allan J. Cigler and Burdett Loomis, eds.,
          Washington DC: Congressional Quarterly Press, 1991, Pp. 1-30.


          Heclo, Hugh. "Issue Networks and the Executive Establishment",
          in The New American Political System, Anthony King, ed.,
          Washington DC: American Enterprise Institute Press, 1978, Pp.
          87-124.


          Peschek, Joseph G. Policy Planning Organizations: Elite Agendas
          and America's Rightward Turn, Philadelphia: Temple University
          Press 1987, Pp. 1-38, 60-67, 203-241.

   Week 10: Taxes, Charity, and Trust

   The tax exemption granted nonprofit institutions is a long-standing
   public policy based, in part, on the assumption that nonprofits share
   with the public sector some of its social responsibilities. As we have
   seen in previous discussions, the concept of trust is central to this
   expectation. In the April 10, 17 readings we considered the importance
   of nonprofits in building social capital and developing socially
   trusting behavior. In Week 6, we discovered that nonprofits, because
   they eschew a profit motive, are expected to be the preferred
   providers of services where organizational trust is a better indicator
   of quality than market signals. But what are the implications for
   society when nonprofits seem to violate this trust and violate the
   expectation that they are not self-serving. For example, should
   private nonprofit colleges, that generate large income flows from
   major sports and research programs and whose primary beneficiaries are
   the children of elites, be tax exempt institutions? In the District of
   Columbia, where public schools struggle to maintain minimum quality
   standards and the local government is in perennial default, should
   venerable organizations like the National Geographic Society make no
   contribution to the public coffers for schools, police and fire
   protection, the courts, or transportation infrastructure? Should the
   definition of nonprofit activity be so inclusive that it encompasses
   the National Football League which in 1993, paid its commissioner $1.5
   million per year, leased seven floors of a Park Avenue office complex,
   and contributed less than 1% of its $35 million dollar budget on
   charitable activities? In this weeks readings we explore these issues
   within the broader context of theories which explain, define, support,
   and question state and federal tax exemptions.


          Gaul, Gilbert M.; Borowski, Neill A. "Warehouses of Wealth: The
          Tax Free Economy", Reprint of a series published in The
          Philadelphia Inquirer, April 18-24, 1993.


          Barras, Jonetta Rose. "The Tax Free Zone" Washington City
          Paper, December 2, 1994.


          Simon, John G. "The Tax Treatment of Nonprofit Organizations: A
          Review of Federal and State Policies" in The Nonprofit Sector:
          A Research Handbook, Walter W. Powell, ed. New Haven: Yale
          University Press, 1987. Pp. 67-98

   Week 11: Shadow Governments: The Privatization of the Public Sphere

   It is assumed that nonprofit organizations serve primarily charitable
   or philanthropic purposes, but as we have seen in our discussion of
   the civic roles of elite philanthropists, nonprofit organizations can
   also serve private purposes. In the following readings, we will
   examine various types of "shadow government" nonprofits which may
   detract from the public good by moving what would normally be public
   functions to the private sphere. One form of privatization is the
   widespread use of semi-public authorities to carry out redevelopment
   efforts. We examine case studies in Baltimore and New York and
   consider contrasting assessments of the value of these organizational
   structures. Another method of privatization is through homeowners
   associations which exercise sufficient autonomy to maintain roads and
   private security forces, restrict access, and impose strict
   regulations on structural appearance and personal behavior. Finally,
   we examine educational support foundations. As state legislation has
   restricted local taxing authority in order to equalize funding and has
   reduced budgets for state supported institutions, enterprising parents
   and administrators have sought alternative sources of private funding
   by creating fundraising foundations. Is this the wave of the future?
   Are these uses of shadow governments simply flexible vehicles for
   carrying out public functions or are they harbingers of the breakdown
   of civic trust and a return to privatism? Do these limited governments
   promote equal access and democratic principles in their governance
   structures or do they discourage participation? Do they have an
   outward civic orientation or do they segregate citizens? Referring to
   our earlier readings on social capital, how does Putnam draw the
   distinction between "good civic engagement" and "bad civic
   engagement"? If shadow governments erect walls of privilege, do they
   know what they are walling in and what they are walling out?


          McKenzie, Evan. Privatopia: Homeowner Associations and the Rise
          of Residential Private Government, New Haven: Yale University
          Press, 1994, Pp. 1-28, 122-149.


          Siegel, Fred. "Reclaiming our Public Spaces", in Metropolis:
          Center and Symbol of our Times, edited by Philip Kasinitz, New
          York: New York University Press, Pp. 369-394.


          Stoker, Robert P. "Baltimore: The Self-Evaluating City? in The
          Politics of Urban Development, Clarence N. Stone and Heywood T.
          Sanders, eds. Lawrence, KS: University of Kansas Press, 1987,
          Pp. 244-268.

   Clippings Packet (5 pages)
          Martin, Douglas. "New York Announces Plan to Revitalize Old
          Square", New York Times 11-16-95


          Lasdon, Doug and Halpern, Sue. "When Neighborhoods are
          Privatized" New York Times Op-Ed 11-30-95.


          Landauer, Robert. "Everyone Can Help Out: Local Education
          Foundations Pool Resources", Oregonian, Opinion, 2-11-96.


          Friends of the Branford P. Millar Library. Promotional
          brochure, Millar Library Portland State University. (no date)

   ARNOVA list serve discussion, selected comments (4 pages)
          Michael Bryd 5-4-95 (opening remarks)
          Kirsten Gronbjerg 5-6-95 (response)
          Roger Lohman 5-10-95 (response)
          Michael Byrd 5-24-95 (reply)

   There are some terms in this selection which may have been defined in
   other parts of the work from which is was taken. For your information,
   BID is a Business Improvement District, CID is a common interest
   development, and CC&R refers to covenants, conditions, and
   restrictions written into deeds.

   Week 12: Institution Building in Developing Countries

   An underlying theme of our discussion of the political economy of
   nonprofit organizations has been the discovery of the "blurring of
   sectors" between market, state and nonprofit. The "blurring of
   sectors" discovery was remarkable because it challenged traditional
   descriptions of the nonprofit sector as "independent" and because it
   contradicted the zero sum economic models of competition or "crowding
   out" between state and nonprofit service providers. But the discovery
   of interdependence in service provision is only part of the story. As
   we discussed in our civil society readings, associationalism seems to
   be connected to the building of state capacity. Nowhere is the nexus
   of non-governmental activism and state building becoming more evident
   than in the global associational revolution. The role of
   non-governmental organizations (NGOs) in strengthening democratic
   political structures is being recognized both in weakly
   institutionalized developing countries and in those middle European
   countries being transformed from centralized states to commercial
   republics. In this weeks readings, Lester Salamon (1995) provides the
   overview while Fisher and Diaz-Albertini (1993) address the role of
   NGO's in building civil institutions.


          Salamon, Lester M. Partners in Public Service:
          Government-Nonprofit Relations in the Modern Welfare State.
          Baltimore: Johns Hopkins University Press, 1995, Pp. 241-269.


          Fisher, Julie. The Road From Rio: Sustainable Development and
          the Non-governmental Movement in the Third World, Westport, CN:
          Praeger, 1993. Pp. xi-xiv, 1-20, 163-183.


          Diaz-Albertini, Javier. "Nonprofit Advocacy in Weakly
          Institutionalized Political Systems: The Case of NGDOs in Lima,
          Peru", Nonprofit and Voluntary Sector Quarterly, Vol. 22, No.
          4, Winter 1993, Pp.317-337.

   Week 13: Future Trends - Dreams and Dilemmas

   Jeremy Rifkin (1995) paints a bleak future for the global workforce,
   but ends his analysis with an optimistic suggestion that the rapidly
   growing third sector should be subsidized to absorb this reserve army
   of displaced workers. Is Rifkin right, are nonprofit organizations the
   social and economic shock absorbers of transforming economies? Will a
   government in retreat and in debt be willing or able to provide a
   social wage for those seeking opportunities in the nonprofit sector?

   Lester Salamon (1995) presents a somewhat different scenario in his
   work on the inter-dependence of the government and nonprofit sectors.
   He suggests that the era of government cutbacks is forcing a
   retrenchment of nonprofit sector? What will be the outcome of this
   restructuring? Will hard-pressed nonprofits use volunteers to replace
   professionals? Will they increasingly undertake commercial ventures to
   supplement income? Does it matter?


          Rifkin, Jeremy. The End of Work: The Decline of the Global
          Labor Force and the Dawn of the Post-Market Era. New York: G.P.
          Putnam's Sons, 1995, Pp. 3-41, 221-74.


          Salamon, Lester M. Partners in Public Service:
          Government-Nonprofit Relations in the Modern Welfare State.
          Baltimore: Johns Hopkins University Press, 1995, Pp. 202-242


          Reiner, Sara "The Downsizing of America: The Community: Trying
          to Regroup," 4th in the series. New York Times News Service,
          reprinted in the Oregonian, Wed. March 20, 1996, Pp. A12-A13.

   LISTSERVS AND LISTSERV COMMANDS

   If you have not participated on a listserv before, initially, it may
   seem confusing. This brief discussion is provided to help familiarize
   you with the basics and describe the simple steps necessary to join a
   listserv. A listserv is exactly what the name suggests. It is a server
   that posts your message to all members of a list. If you are a member
   of a listserv, you will receive all the messages posted by other
   members of the list. Essentially, it is an electronic bulletin board
   where messages and replies to messages are instantaneously posted.

   To join the ARNOVA-L listserv, you must send a message to the server
   where the list is maintained and where all messages are centrally
   distributed. The process of joining is easy. In the message header of
   your email editor simply type in the following: TO:
   LISTSERV@WVNVM.WVNET.EDU
   FROM: [your Internet address]
   SUBJECT: [leave blank]
   MESSAGE TEXT: subscribe ARNOVA-L [your complete name]

   To send mail to the list, use: ARNOVA-L@WVNVM.WVNET.EDU
   To send operating commands to the server, use:
   LISTSERV@WVNVM.WVNET.EDU



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Comments and suggestions:
Hari Srinivas - hsrinivas@gdrc.org