INT 900 Lecture Notes - Lecture 2: Scientific Management, Statism, Social Safety Net
5 Apr 2016
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Document Summary
Why is there a non-profit sector: historically situated (society predates state) Organizations that rose have an important role: market failure (collective goods and the free rider problem; contract failure") The market is very good providing for needs. Not quite good in doing things like protecting clean water, safe neighbourhoods (because of the problem of the free rider problem). Contract failure happens when a service purchaser finds it difficult to determine the value of a service or good: government failure (problems of gaining consent for programs; problems of bureaucracy) Problems with gaining consent for programs, not able to achieve popular approval before beginning a project. The role and inherent weaknesses of the voluntary sector: Existence of non profit sector seen largely in the problems found in market and government failure . But there is a problem of voluntary failure as well (4 categories)
