The Welfare State In Transition: What Role For Nonprofit Sector?

By Yeheskel Hasenfeld

Department of Social Welfare, UCLA School of Public Affairs, Los Angeles, California, U.S.A.

 

In order to cope with the rising costs of social protection, mature welfare regimes are forcing significant changes in the delivery of human services. Among these changes are devolution and privatization of services. The article explores the privatization options used by various welfare regimes and their consequences on the future role of the nonprofit sector .These options can be classified as supply-driven or demand-driven. These, in turn, alter in particular ways the mix of public, nonprofit and for profit organizations in the delivery of services and the relations among them and the state. In particular, it is argued that as the state reshapes the institutional and ecological environment of human services, it unleashes forces that are likely to present serious challenges to the role and survival of nonprofit organizations.

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