Post on 28-Feb-2019
ThisprojecthasreceivedfundingfromtheEuropeanCommission’sSeventhFrameworkProgramme(FP7)forresearch,technologicaldevelopmentanddemonstrationundergrantagreementno.613034.
MEASUREMENT WORKING PAPER NO. 13/2016
TheSizeandScopeoftheEuropeanThirdSector
MeasurementcoordinatorLesterM.SalamonAuthorsLesterM.SalamonWojciechSokolowski
Recommendedcitationinformation:Salamon,M.L.&Sokolowski,W(2016)TheSizeandScopeoftheEuropeanThirdSector,TSIWorkingPaperNo.12,SeventhFrameworkProgramme(grantagreement613034),EuropeanUnion.Brussels:ThirdSectorImpact.
MEASUREMENT
1
TABLEOFCONTENTS1 Introduction.............................................................................................................2
2 TheContoursoftheThirdSector:TheAggregateView.............................................7
2.1 Anenormouseconomicengine...................................................................................82.1.1 Volunteerengagement....................................................................................................82.1.2 WhatdoestheEuropeanthirdsectordo?.......................................................................92.1.3 Revenuestructure..........................................................................................................102.1.4 Institutionalstructure....................................................................................................112.1.5 Longitudinalchanges......................................................................................................122.1.6 ADiverseSector:RegionalVariations............................................................................13
2.2 Regionalvariationsinthirdsectorsize......................................................................142.2.1 RelativescaleofdifferentTScomponentsamongregions............................................152.2.2 RegionalvariationsinEuropeanTSfunctionsandrevenuepatterns............................16
2.3 ExplainingCross-NationalVariationsinTSDimensions.............................................18
3 Conclusion..............................................................................................................25
Appendix1:MethodologyforestimatingthesizeoftheTSinEurope..........................26
Appendix2:EstimatesofTSFTEworkforceinEUandNorway,2014............................30
2
1 IntroductionThepurposeofthispaperistoprovideanestimateofthesizeoftheThirdSectorinEuropeanUnionmembercountriesandNorway.TheconceptualframeworkfordefiningtheThirdSectorhasbeendevelopedbyateamofEuropeanexpertsworkingundertheauspicesoftheThirdSectorImpactProject1,andoutlinedinSalamonandSokolowski(2016)2.
Inanutshell,thisconceptualframeworkdefinestheThirdSectorassetoforganizationalandindividualactivitiesthatmeetthefollowingthreeunderlyingphilosophicalnotionsfrequentlyevokedinEurope(andverylikelybeyondit):
i. Privateness—i.e.formsofindividualorcollectiveactionthatareoutsidethesphereandcontrolofgovernment;
ii. Publicpurpose—i.e.,servingthebroadercommunityandnotprimarilytogeneratingprofitorotherwisecreatingsomethingofvalueprimarilytothepersonsundertakingtheactivitiesorthosepersons’familymembers;and
iii. Freechoice—i.e.,pursuedwithoutcompulsion.
Morespecifically,thisconceptualizationincludesorganizationscharacterizedbythefiveoperationalfeatures;
a) Itisanorganization,thatis,institutionalizedtosomeextent,thoughnotnecessarilylegallyregisteredorconstituted;
b) Ittotallyorsignificantlylimitsthroughsomebindingprovisiondistributinganysurplusgeneratedfromtheiractivitiestoitsdirectors,employees,investors,orothers;
c) Itisself-governing,thatis,itisinstitutionallyseparatefromgovernment,isabletocontrolitsowngeneralpoliciesandtransactionsandhasthecapacitytoownassets,incurliabilities,orengageintransactionsinitsownright;
1Formoreinformationonthisprojectseehttp://thirdsectorimpact.eu/2ForamoredetaileddiscussionofthisconceptualframeworkandtheprocessofitsassemblyseeLesterM.SalamonandS.WojciechSokolowski,BeyondNonprofits:ReconceptualizingtheThirdSector,Voluntas(2016)27:1515–1545.
3
d) Itisnon-compulsory,thatis,involvingsomemeaningfuldegreeofuncoercedfreechoiceonthepartofindividualsworkingfor,orparticipatingin,itsactivities;and
e) Private,i.e.,notcontrolledbygovernment.
ThesetofinstitutionalunitsthatembodyallfiveoperationalfeaturesspecifiedaboveconstitutestheorganizationalcomponentoftheTSEsector.Thisincludesmostnonprofitinstitutions(NPIs),aswellascertaincooperatives,mutualsocieties,andsocialenterprises.
Inadditiontoorganizations,theTSEsectorembracesunpaidindividualactivitiesforsocialorpublicbenefit.Thefiveoperationalfeaturesidentifyingtheseactivitiesofthehouseholdsector,drawingonthesetofcriteriaworkedoutanddescribedintheILOManualontheMeasurementofVolunteerWorkinclude:
a) Theyproducebenefitsforothersandnotjust,orchiefly,forthepersonperformingthem.Thetesthereiswhethertheactivitycouldbereplacedbythatofapaidsubstitute;
b) Theyarenotincidentaltootheractivities.Rather,theyarecarriedonforameaningfulperiodoftime,typicallydefinedasanhourinacertainreferenceperiod;
c) Theyareunpaid,thatis,thepersonperformingthemisnotentitledtoanycompensationincashorkind;
d) Theactivityisnotaimedatbenefitingmembersofone’shouseholdorimmediatefamily;and
e) Theactivityisnon-compulsory,whichmeansitinvolvesameaningfulelementofindividualchoice.
Thisconceptualframeworkcoversalluncompensatedeffortsoutsideoforganizationsofanykindthatbenefitgeneralpublic,performedbyindividuals15yearsofageorolder,suchashelpingfriendsorneighbors,workingforthebenefitofcommunities,humanrights,ortheenvironment,exceptuncompensatedinternship,apprenticeship,andsimilartrainingactivitiestoobtainoccupationalskills.
Figure1summarizesthescopeoforganizationalandindividualactivitiescoveredbytheconceptualizationoftheThirdSectoradoptedinthisreport.
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Figure1.ConceptualFrameworkfortheTSESector
ArmedwiththisconceptualizationoftheThirdSectorweareinapositiontoestimateitsdimensionsandcontours.Butwhichdimensionscanprovidethemostrelevantdescriptionofthissector?Conventionaleconomicmeasures,suchasthemonetaryvalueofthesector’scontributiontothenationaleconomy(theso-calledGrossValueAddedorGVA)maynotbethebestmeasurebecauseaverysubstantialpartofthethirdsector’scontributiontoeconomyandsocietyisprovidedatbelowmarketpricesorfreeofchargeandreliesonunpaidvolunteerlabour.Likewise,thenumberorganizations,commonlycitedinpopularaccounts,isalsomisleadingduetovastdifferencesinthesizeoforganizations.Asectorwithafewverylargeorganizationscarriesmoreweightthanonewithmanyverysmallorganizations.Whatismore,existinglistingsoforganizationarenotoriouslyunreliablebecausetheytendnottobeupdatedandfailtopurgedefunctorganizationsinaregularway.
Previousresearch(Salamonet.al.2004)hasidentifiedthefollowingfourdimensionsdescribingtheThirdSectorthatallowustocompareittoothersegmentsofnationaleconomiesandtoitscounterpartsindifferentcountries:
1) ThesizeoftheThirdSectorworkforce,whichprovidesabettermeasureofthelevelofactivitythatthissectoraccountsforthandoestheeconomicvalueofitsoutput.Becausesuchentitiesoftenengagepart-timeworkersaswellasfull-timeones,thisvariablehastobemeasuredinfull-time-equivalentterms,i.e.aperson
5
workinghalf-timeforaThirdSectororganizationwouldbecountedasone-halfofaFTEworker.3
3) ThecompositionoftheThirdSector(TS)workforce.Unlikethebusinessorgovernmentsectors,theThirdSectorreliesextensivelyonbothvolunteerandpaidemployment.Therefore,itisimportanttogenerateinformationonbothformsoflabour,andtobeabletodifferentiatebetweenthetwo.Whatismore,itisimportanttomeasurebothvolunteerworkthatischannelledthroughorganizationsandthatprovideddirectlytootherindividuals.ThesubstanceofTSactivities,whichcanbemostconvenientlymeasuredbythesharesoftheTSworkforceindifferentactivityfields.TofacilitatecomparisonbetweenTSactivitiesandthoseoftheothersectors,itisimportanttouseclassificationstructuresthathavebeendevelopedtoportraythecompositionoftheothersectors;and
4) ThecompositionofTSrevenue,whichisrepresentedbyrevenuestreamsfromthreemajorsources:governmentpayments(includinggrants,contracts,andreimbursementsforservicesrenderedtoeligibleparties);incomefrommarketsalesofgoodsandservicesandmembershipbenefitstoprivateparties;andphilanthropicdonationsbyprivateparties.Unfortunately,existinginternationalstatisticalsystems,suchastheSystemofNationalAccounts,obscurethesedifferentrevenuestreamsbytreatinggovernmentgrantsastransfersindistinguishablefromprivatephilanthropyandgovernmentcontractsandvouchersasmarketsalesindistinguishablefromothermarketsales.4Accordingly,greatcaremustbetakentoadjustthedatatoreflectclearlythesethreedistinctsources.
SincetheconceptualframeworkadoptedinthisprojectidentifiesdifferentinstitutionalcomponentsoftheTS,wealsoincludeafifthdimension:
5) TheinstitutionalcompositionoftheTS,includingatleastfourdistinguishablecomponents:NPIs,cooperativesandmutualsocietiesthatarenotNPIs,social
3Sincevolunteersandsomepaidworkersworkpart-timeorepisodically,weconvertedallemploymentdataintofull-timeequivalent(FTE)workers.Thiswasdonebydividingthetotalhoursofpaidorvolunteerworkinagivereferenceyearbythenumberofhoursconsideredtorepresent“full-timework”whichweassumetobeonaverage1,760hours..Thisnumbervariesfromcountrytocountryanditisgenerallylowerinhigh-incomecountriesofWesternEuropethaninmediumincomecountriesofEasternEurope.4Salamon,LesterM.,S.WojciechSokolowski,andAssociates.(2004).GlobalCivilSociety:DimensionsoftheNonprofitSector,VolumeTwo.Bloomfield:KumarianPress.
6
enterprisesthatarenotNPIsorcooperatives,anddirectvolunteeractionoutsideorganizations.5
IndevelopingthemeasuresofthesefivedimensionsoftheTSintheEuropeanUnionandNorway,weutilizethefollowingdatasources:
1) Acomprehensivestudyofnonprofitinstitutionsinover40countries,including20Europeancountries,carriedoutundertheauspicesoftheJohnsHopkinsUniversityComparativeNon-ProfitSectorProject(CNP)6;
2) AreportonthesocialeconomyintheEuropeanUnionpreparedbytheInternationalCentreofResearchandInformationonthePublic,SocialandCooperativeEconomy(CIRIEC)7;
3) NonprofitInstitutionSatelliteAccountsandsimilarreportsissuedbythestatisticalagenciesofBelgium,CzechRepublic,Italy,Norway,Poland,PortugalandSweden;
4) TimeUseSurveysandothersurveysinseveralEuropeancountries.8
5Volunteerworkcarriedoutthroughorganizationsisalsoincluded,butitsfull-timeequivalentamountisincludedinthecountofNPIworkers.6ForadescriptionofthisprojectanditsmethodologyseeSalamonetal.2004.7JoséLuisMonzónCamposandRafaelChavesÁvila,THESOCIALECONOMYINTHEEUROPEANUNION,Brussels:EuropeanEconomicandSocialCommittee,2012.8Miranda,V.(2011),"Cooking,CaringandVolunteering:UnpaidWorkAroundtheWorld",OECDSocial,EmploymentandMigrationWorkingPapers,No.116,OECDPublishing.doi:10.1787/5kghrjm8s142-en;ErstelltvomInstitutfürinterdisziplinäreNonprofit-ForschunganderWirtschaftsuniversitätWien(NPO-Institut),FreiwilligesEngagementinÖsterreich,Wien,2009,http://www.bmask.gv.at;GŁÓWNYURZĄDSTATYSTYCZNY,WOLONTARIATWORGANIZACJACHIINNEFORMYPRACYNIEZAROBKOWEJPOZAGOSPODARSTWEMDOMOWYM–2011(VOLUNTEERINGTHROUGHORGANIZATIONSANDOTHERTYPESOFUNPAIDWORKOUTSIDEOWNHOUSEHOLD–2011,Warszawa,2012;Pennerstorfer,A.,Schneider,U.&Badelt,C.in:Simsa,R.,Meyer,M.&Badelt,C.:(Hg.):HandbuchderNonprofit-Organisation.Stuttgart2013(5.überarbeiteteAuflage);oje,T.P.,Fridberg,T.,&Ibsen,B.(2006).DenfrivilligesektoriDanmark.OmfangogbetydningRapport06:19).København:Socialforskningsinstituttet.Retrievedfrom:http://www.sfi.dk/Admin/Public/DWSDownload.aspx?File=%2fFiles%2fFiler%2fSFI%2fPdf%2fRapporter%2f2006%2f0619_Den_frivillige_sektor.pdf;Kaminski,P.(2005).Table1.TheNPSinFrance,2002(versionINSEE).LecomptedesInstitutionsSansButLucratif(ISBL)enFrance(Année2002).Paris:l'InstitutNationaldelaStatistiqueetdesÉtudesÉconomiques(INSEE);Nagy,R.,&Sebestény,I.(2009).TableA10inMethodologicalPracticeandPracticalMethodology:FifteenYearsinNonprofitStatistics(HungarianStatisticalReviewSpecialNumber12).Budapest:HungarianCentralStatisticalOffice.Retrievedfrom:http://www.ksh.hu/statreview;ISTAT.(2014).Nonprofitinstitutionprofilebasedon2011censusresults.Rome:Istitutonazionaledistatistica.Retrievedfrom:http://www.istat.it/en/files/2014/10/Nonprofit-Institution-Profile-based-on-2011-Census-results_EN_definitivo.pdf?title=Nonprofit+institutions+profile+-+9+Oct+2014+-+Full+text.pdf;
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Itmustbenoted,however,thattheestimatesofthesizeandcontoursoftheEuropeanthirdsectorofferedherearenecessarilyhighlypreliminary.Thisissobecausethedataavailableonthekeycomponentsofthissectorremaingrosslyincompleteand,evenwhereavailable,seriouslyoutofdate.AlthoughaspecialHandbookonNonprofitInstitutionsintheSystemofNationalAccountswasissuedbytheUnitedNationsStatisticalDivisionin2003,onlysixEUcountriesplusNorwayhaveseenfittoimplementthisHandbook.Similarly,whiletheStatisticsDepartmentoftheInternationalLabourOrganizationissuedaManualontheMeasurementofVolunteerWorkin2011,onlythreecountriesinEuropehaveimplementedit,leavingusdependentontime-usesurveydatathatcoversonly17ofthe28EUcountriesandNorway.TheJohnsHopkinsComparativeNonprofitSectorProjectgeneratedsoliddataonnonprofitinstitutionsin20ofthe27EUcountries,butthesedatawerecollectedmostlyinthemid-1990sandhavebeenupdatedforonlyahandfulofthecountriessincethen,makingitnecessarytorelyoninevitablyimperfectmethodsfor“aging”thedata.Nosystematicdataexistonsocialenterprisesandthedataavailableoncooperativesmakesitdifficulttodeterminewhatsharemeetthein-scopecriteriaforinclusioninthethirdsectororwhatshareareactuallyrecordedasnonprofitinstitutions.
Fortunately,arevisedversionoftheUNNPIHandbookhasbeendevelopedandisavailableforimplementation.ThisrevisionadherescloselytothedefinitionofthethirdsectorofferedinthisreportandthereforeoffersthehopeofgeneratingmorereliabledataontheEuropeanthirdsectorthaniscurrentlyavailable.ButitremainstobeseenwhetherEuropeanstatisticalandpolicyofficialswillsupportimplementationofthisimportantnewpieceofstatisticalmachinery.
Whilepreliminary,however,thedatapresentedhereofferasolidfirstapproximationofthescaleandcontoursoftheEuropeanthirdsectorbasedonthebestdataavailableandestimatingtechniquesavailable.Foradetaileddescriptionofthesevariousestimatingproceduresused,seeAnnex1.
Topresenttheseestimates,thebalanceofthischapterfallsintothreesections.Inthesectionthatfollows,wereportourestimatesoftheaggregatedimensionsoftheTSin28EUcountriesandNorway.InthesecondsectionweexamineregionalvariationsinthescaleandcompositionoftheTStotheextentpermittedbythedata.Theselatterfindings,inturn,posethepuzzlethatthefinalsectionofthischapterwillseektounravel
2 TheContoursoftheThirdSector:TheAggregateView
8
2.1 Anenormouseconomicengine
Perhapsthemajoraggregatefindingthathasemergedfromthedataexaminedhereisthat,contrarytomanypopularassumptions,theEuropeanThirdSectorisanenormouseconomicforce,outdistancingmostmajorindustriesinthescaleofitsworkforce.Takentogether,asof2014,thelatestdataforwhichdataareavailable,theEuropeanthirdsectorengagesanestimated28.3millionfull-timeequivalent(FTE)workers(paidandvolunteer)inthe28EUcountriesandNorway.TheEuropeanTSthusaccountsfornearly13percentoftheEuropeanworkforce.Thisissignificantbecauseanyindustrythataccountsfor5percentoftheemploymentofacountryisconsideredtobeamajorindustry.Whatismore,inthefieldsinwhichtheyoperate,theTSunitsturnouttoaccountforanevenlargeremploymentshare.
Putsomewhatdifferently,withover28millionfull-timeequivalentworkers,theEuropeanthirdsectoristhethirdlargest“employer”inEurope,trailingonlytradeandmanufacturing,butoutdistancingtheconstructionandtransportationindustriesby2:1,andthefinancialservicesindustryby5:1(seeFigure2).
Figure2.SizeoftheTSworkforcevs.employmentinmajorindustries,29Europeancountries,2014
2.1.1 Volunteerengagement AsecondstrikingcharacteristicoftheEuropeanthirdsectorisitsengagementofvolunteersinadditiontopaidemployees.Infact,oftheover28millionfull-time
2.5
6.1
6.6
12.5
13.1
14.4
28.3
30.7
32.0
0 10 20 30 40
Realestate
Financeandinsurance
Informationandcommunication
Accommodationandfood
Transportation
Construction
ThirdSector
Trade
Manufacturing
MillionsofFTEworkers
9
equivalentworkersinthecivilsocietysectorinEurope,55percentarevolunteers(Figure3).
Figure3.CompositionofTSworkforce,29Europeancountries,2014
Putsomewhatdifferently,thethirdsectorinEuropemobilizesavolunteerworkforceofover15.5millionfull-timeequivalentworkers,moreFTEworkersthanareemployedinanymajorEuropeanindustrybuttradeandmanufacturing.Ofthese15.5millionFTEvolunteerworkers,6.5millionworkthroughnonprofitorganizationsandthebalance,roughly9.0millionvolunteerworkers,volunteerdirectlytohelpfriendsandneighbours.Clearly,thisabilitytomobilizeaveritablearmyofvolunteersisanotherpotentmeasureofthereachandpowerofthethirdsector.
2.1.2 WhatdoestheEuropeanthirdsectordo?Notonlyarecivilsocietyorganizationsimportantineconomicterms:theyarealsoimportantsocially,politically,andculturally.Indeed,thirdsectoractorsperformamultitudeofsocialfunctions.Foronething,theyareserviceproviders,deliveringsignificantsharesofsuchservicesashealthcare,education,environmentalprotection,disasterrelief,andeconomicdevelopmentpromotion.Beyondthis,however,theyfunctionaspolicyadvocates,aspromotersofasenseofcommunity,asguardiansofacrucialvalueemphasizingtheimportanceofindividualinitiativeforthecommongood,andasvehiclesforgivingexpressiontoahostofinterestsandvalues—whetherreligious,ethnic,social,cultural,racial,professional,orgender-related(Salamon2014).
TogainsomeinsightintotheactivitiesandfunctionsthattheEuropeanthirdsectorperforms,weclassifiedtheactivitiesofthethirdsectorworkforceintothreemajor
Paidemployees
,45%
Volunteers,
55%
N=28.3millionFTE
10
categories:service,expressiveandotherfunctions.9Theservicefunctionentailsactivitiesineducation,socialservices,healthcare,andhousingandcommunitydevelopment.Directvolunteeraction,whichbydefinitioninvolveshelptootherhouseholds,isconsideredaserviceactivityinthisreport.Theexpressivefunctioncomprisesactivitiesincultureandrecreation,membershiporganizations,includinglabourunions,businessandprofessionalorganizations,environmentalorganizationsandreligiouscongregations.Finally,theotherfunctionincludesactivitiesofcharitablefoundations,internationalorganizationsaswellasactivitiesnotelsewhereclassified.Giventhelimitationsoftheexistingdata,moredetailedclassificationofTSactivitybyindustryisnotpossibleatthistime.AsFigure4shows,weestimatethattheoverwhelmingmajority(75percent)ofTSworkforceactivityisdevotedtotheservicefunctionsofthesector.
Figure4.EuropeanTSworkforceactivity,byfunction,29countries,2014
2.1.3 RevenuestructureTherevenuestructureofthecivilsocietysectordiffersmarkedlyfromwhatmanyobserverstendtobelieve.Whilecharitablegivingattractsthemostpublicandmediaattention,itturnsouttoaccountforarelativelysmallshareofTSrevenue.Thus,asshowninFigure5,takenalltogether,charitablecontributions—fromindividuals,foundations,andcorporations—accountonaverageforabout11percentofoverallTSrevenueinEurope.Bycontrast,privatefeeincome,whichincludesprivatepaymentsforgoodsandservices,membershipdues,andinvestmentincome,accountsforamuchlarger57percentofincomeonaverage.Finally,governmentsupport,whichincludesgrants,contracts,andreimbursementsforservicesrenderedtoeligibleprivateparties
9SeeAnnex1forthemethodologyusedinthisestimation.Giventhelimitationsoftheexistingdata,moredetailedclassificationofTSactivitybyindustryisnotpossibleatthistime.
Service,73%
Expressive,25%
Other,2%
N=28.3millionFTEworkers
11
suchfieldsashealthcareoreducation,makeupthebalanceofabout34percentofTSrevenue.10
Figure5.EuropeanTSrevenuestructure,29countries,2014
2.1.4 InstitutionalstructureThefinaldimensionoftheEuropeanTSthatdeservesattentionisitsinstitutionalstructure.Thisincludestwocomponents:first,anorganizationalcomponentmadeupofNPIs,cooperativesandmutualsocieties,andsocialenterprises;andsecond,adirectactioncomponentmadeupofvolunteeractivitiesnotmediatedbyorganizations.
Duetodatalimitations,itisnotpossibletoestimatethesizeofthesocialenterprisesthatarenotNPIs.Basedontheavailableinformation,however,itisreasonabletoassumethatmostsocialenterprisesinEuropeareeitherNPIsorcooperatives,sotheabsenceofdataonthenon-NPIsocialenterprisecomponentshouldnotalterourpictureverysubstantially.
Similarproblemsrelatetothecooperativesthataresubjecttoafullnon-distributionofprofitconstraintandthusareconsideredtobeNPIs.BasedondataavailableinatleastoneEuropeancountry—France—weestimatethat9percentofthetotalrecorded10Theseestimatesdonotincludeanypaymentsfordirectvolunteeraction,whichifany,weassumetobeinsignificant.Wefurthermoreassumethatallincomeofcooperativesandmutualsocietiescomesfrommarketactivities,andthusisconsideredtobefeeincome.Unfortunately,thedatadonotpermitustoestimatethemonetaryvaluesoftheserevenuestreamsatthistime.FormoreinformationaboutthisestimationmethodologyseeAnnex1.
Privatefeesandsales,57%
Government,34%
Privatephilanthropy,
8%
Excludingdirectvolunteeraction
12
employmentincooperativesandmutualsreportedintheoneexistingestimateofEuropeancooperativeemploymentisactuallyworkingincooperativesthatarealsoNPIs.Wehavethereforeaddedthistoourestimateofthein-scopecooperativeandmutualemploymentoutsideofNPIsandadjustedtheemploymentinNPIsaccordingly.Figure6showsthedistributionoftheTSworkforceamongthesethreeresultingcomponents:directvolunteeringandthetworemaininginstitutionalcomponents,NPIs(excludingthosethatarecooperatives),andcooperativesandmutuals(includingthosethatarealsoNPIs).
Figure6.InstitutionalstructureoftheEuropeanTS,29countries,2014
ItisclearthatNPIsstillengagethemajority(58percent)oftheTSworkforce,andabout88percentoftheorganizationalcomponentoftheTS.OfthisNPIworkforce,however,60percentismadeupofvolunteers.Bycontrast,cooperativesandmutualsocietiesaccountforamuchsmaller10percentoftheTSworkforceevenafterincludingthecooperativesoperatingasNPIs.
ThefinalcomponentoftheTSsector—directvolunteeraction—accountsforasignificant32percentoftheTSworkforce,andifthevolunteersoperatingthroughnonprofitorganizationswereincluded,theoverallvolunteershareoftotalTSfull-timeequivalentemploymentwouldstandat55percent.
2.1.5 LongitudinalchangesOnefinalnotabledimensionofTSEactivityhasbeenitsrecentdynamism.AlthoughwehavelongitudinaldataonlyononeTSEinstitutionalcomponent,thenonprofitinstitutions(NPIs),theselimiteddatashowstheTSEsectorhasrecentlybeeninthemidstofsignificantgrowthinanumberofcountries--growingataratethatexceedsthegrowthof
NPIs,*58%
Coopsandmutuals,10%
Directaction,32%
*Excludingcooperatives
13
overallemploymentintheeconomy.Thus,paidemploymentintheNPIsectorgrewatanannualaveragerateof3.4percentinthe12EUcountriesonwhichcomparativetime-seriesdataareavailable(Figure7).Bycomparison,asshowninFigurex,totalemploymentinthese12countriesgrewatanannualrateofonly0.6percent.
Figure7.Averageannualchangeinemploymentinselectedcountries,NPIsvs.Totaleconomy
Moreover,NPIemploymentgrowthoutdistancedtotalemploymentgrowthinallbutonecountry(Denmark).AparticularlydramaticdifferencetookplaceinSpain,wheretheNPIemploymentwasgrowingattheannualrateof6.6percentbetween2008and2013,whiletotalemploymentshrunkby3.5percentperyearinthesametimeperiod.
2.1.6 ADiverseSector:RegionalVariationsImportantthoughtheseaggregatefeaturesoftheTSare,however,theycanbemisleading.Asoneoldjokeputsit:evenastatisticiancaneasilydrowninacreekthatisonaverage5inchesdeep.Behindtheaveragesoftenliesomesignificantcross-nationalandregionalvariations.AndthatiscertainlytrueoftheEuropeanthirdsector.
Tomakesenseofthesevariations,itisusefultoexaminethemattheregionallevel.Forthispurpose,wehavedividedtheEUcountriesintofourregionalgroupings,whichwetermNorthernEurope,SouthernEurope,Scandinavia,andCentralandEasternEurope.Table1belowdepictsthebreakdownofEuropeancountriesamongthesefourregionalclusters.Tobesure,significantvariationsexistwithintheseregionalgroupings,andeven
3.6%3.3%
4.1%-0.3%
1.7%6.6%
4.9%2.6%2.4%2.2%
6.6%2.6%
3.4%
1.4%1.6%
0.7%0.6%0.7%0.5%0.8%
2.3%0.2%0.6%
-3.5%1.3%
0.6%
-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%
Austria(2005-2010)Belgium(2004-2010)
CzechRepublicDenmark(2003-2013)France(2002-2013)
Hungary(2003-2006)Italy(2001-2011)
Norway(2004-2013)Poland(1997-2012)
Portugal(2002-2010)Spain(2008-2013)
Sweden(2000-2013)12-ctryaverage
Avg.annualchange
Totalecon.
NPI
14
withinparticularcountries,butourdatadonotatthisstagepermitustogobelowtheregionallevel.
Table1:RegionalgroupingofEUcountriesplusNorway
NorthernEurope
Austria IrelandBelgium LuxembourgFrance NetherlandsGermany UnitedKingdom
SouthernEurope
Cyprus MaltaGreece PortugalItaly Spain
Scandinavia
Denmark NorwayFinland Sweden
CentralandEasternEurope
Bulgaria LithuaniaCroatia PolandCzechRepublic RomaniaEstonia SlovakiaHungary SloveniaLatvia
2.2 Regionalvariationsinthirdsectorsize
AusefulstartingpointforthisdiscussionofregionalvariationsinthecontoursoftheTSiswiththesector’sbasicscale.Countriesdiffer,ofcourseinthesizeoftheirpopulation,soitisnaturalthatlargercountrieswillhavelargerTSworkforcesthansmallerones.Todrawvalidcomparisons,therefore,somewaymustbefoundtocontrolforthesizeofthecountry’spopulations.WedothisbyfocusingonthesharethattheTSworkforcerepresentsofthetotalnumberofpeopleemployedineachregion.AsFigure8shows,
15
thatsharevariesfromahighof14.9percentintheScandinaviancountriestolowof9.4%inCentralandEasternEurope.11
Figure8.EuropeanTSworkforceasapercentoftotalemployment,byregion,2014
2.2.1 RelativescaleofdifferentTScomponentsamongregionsTheseoveralldisparitiesintherelativesizeofthethirdsectoramongregionsareovershadowed,moreoverbythemuchlargerdisparitiesinthecompositionofthethirdsectorinthedifferentregionsofthiscontinent.Whatbecomesclearisthatthethirdsectorisfarfrombeingthesameexactphenomenoninthedifferentpartsofthiscontinent,apointthatpolicy-makersandstudentsofthefieldmustacknowledge.Thus,inCentralandEasternEurope,70percentofthirdsectoremploymenttakestheformofdirectvolunteering(Figure9).Bycontrast,employmentinNPIs—bothpaidandvolunteer—accountsforamuchsmaller23.7percent.ThiscontrastssharplywithNorthernEurope,where73percentoftheTSemploymentisinNPIs,muchofitinpaidpositions,whileemploymentincoopsaccountsforunder6percentanddirectvolunteeringarelativelysmall21.5percent.Thistestifiestothestill-embryonicnatureofthemoreformalthirdsectorinstitutionsintheformerlySoviet-dominatedterritoriesandtheirmuchmorerobustdevelopmentinthecontinent’sadvancedNortherntier.SouthernEuropeisdifferentagain,withanexceptionallyhigh14.5percentofTSemploymentincooperatives,asimilarlyquitehigh33percentindirectvolunteering,andacorrespondinglylow52.5percentofemploymentinNPIs.
11SeeAnnex2forthevaluesforindividualcountries.
9.4%
14.9%
13.2%
13.8%
12.9%
0% 2% 4% 6% 8% 10% 12% 14% 16%
CentralandEasternEurope
Scandinavia
SouthernEurope
NorthernEurope
29countries
TSpercentoftotalemployment
16
Figure9.InstitutionalcompositionofEUTS,byregion,2014
2.2.2 RegionalvariationsinEuropeanTSfunctionsandrevenuepatternsOtherdimensionsoftheTS—thescopeofactivitybyfieldandtherevenuestructure—alsoshowconsiderableregionaldifferences.Duetodataavailabilitylimitations,wecanonlyexaminethesevariationsonamuchsmallersetofEuropeancountriesandinstitutions—i.e.onlyfortheNPIcomponentsoftheTSandonlyforthe20countriescoveredbytheJohnsHopkinsComparativeNonprofitSectorProject.AsFigure10shows,thedistributionofserviceandexpressiveactivitiesofNPIsisverydifferentintheScandinaviancountries,where57percentofnonprofitFTEemploymentisdevotedtoexpressivefunctionsandonly40percenttoserviceones,thanitisinNorthernandSouthernEurope,wheretheseproportionsarereversed,withover60percentofTSeffortdevotedtoserviceprovisionandamuchsmaller31to35percentdevotedtoexpressivefunctions.ThisreflectsthemuchgreaterrelianceongovernmentforserviceprovisionintheScandinavianlandsandthelong-standingtraditionofnonprofitinvolvementinadvocacyandsportactivities.
21.9%
59.5%
48.4%
71.2%
58.1%
8.1%
13.2%
18.6%
7.3%
10.3%
70.0%
27.3%
33.0%
21.5%
31.6%
0% 20% 40% 60% 80% 100%
CentralandEasternEurope
Scandinavia
SouthernEurope
NorthernEurope
29countries
Percentoftotal
NPIs* Cooperatives Directvolunteering
*Excludingcooperatives
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Figure10.NPIworkforce,byfunction,20EUcountries
SimilardisparitiescharcterizetherevenuestructureofNPIsacrossEuropeasshowninFigure11.ThusfeeincomeisthedominatrevenuesourceforTSentitiesintheSandinaviancountries,accountingfor57percentofNPIrevenue,wherasgovernmentisthedominantsourceinNorthernEuropeoutsideofScandinavia,withasimilar57percentofrevenuecomingfromthisalternativesourceinthisregion.Lackingbothsubstantialgovernmentandfeeincome,NPIsinCentralandEasternEuroperelydisproportionalyonphilanthropy,whichaccountsfor19percentofNPIincome,twicethesharethatitprovidestothemuchlargerNPIsectorsinScandinavia,andNorthernEurope.
Figure11.NPIrevenuestructure,20EUcountries
53%
40%
61%
62%
55%
44%
57%
35%
31%
41%
4%
3%
4%
7%
4%
0% 20% 40% 60% 80% 100%
CentralandEasternEurope
Scandinavia
NorthernEurope
SouthernEurope
20countries
PercentofNPIworkforce
Service Expressive Other
39%
57%
53%
35%
43%
42%
35%
36%
57%
46%
19%
8%
11%
8%
11%
0% 20% 40% 60% 80% 100%
CentralandEasternEurope
Scandinavia
SouthernEurope
NorthernEurope
20countries
PercentofNPIrevenue
Fees Government Philanthropy
18
Asthissectionhasshown,behindtheaggregatepictureoftheEuropeanthirdsectorliesomeenormouscross-regionalvariations.Whatismore,thesevariationsapplytoeachofthedimensionsoftheTSthatwehavebeenabletoexamine,andofteninapparentlyconfusingways.Whathascausedthesevariations?Isitpossiblethatthesevariationsholdthekeytoexplainingwhatitisthatdeterminesthesize,shape,functions,andfinancingoftheTSsectoracrossEurope?Itistothisintriguingsetofquestionsthatweturninthenextsection.
2.3 ExplainingCross-NationalVariationsinTSDimensions
Cross-nationaldimensionsindifferentmanifestationsofTSactivitieshavenot,ofcourse,totallyescapedpublicscrutiny.Publicofficials,journalists,foundationofficers,civilsocietyactivistsandvolunteershavelonghadhunchesaboutdifferentlevelsandmanifestationsofthirdsectoractivitiesamongcountriesandregions,eventhoughtheyhavelackedsolidempiricalverification.Yet,thepopularexplanationsofthesedifferencesareatbestunconvincingandoftenmisleading.
Perhapsthemostpopularexplanationlinksthesecross-countrydifferencesinthemanifestationsofTSactivitiestodifferentculturalvaluesandsentiments.Thekeyelementofthislineofargumentisthatsocialinstitutionssuchascivilsocietyorganizationsresultfromthedevelopmentofcertainvalues,attitudes,andnormsofbehaviour,manyofwhicharesupposedlyrootedinreligiousconvictionsandteachings.Societiesthatespousenormsandvaluesfavourableforcharity,self-governance,oraltruismwillhavestrongernonprofitandphilanthropicsectorsthansocietiesinwhichsuchimpulsesareweaker.
Variantsofthisargumentcanbefoundintheacademicliteratureaswell.ForexampleBanfieldattributedthebackwardnessofsouthernItalytoaprevalent,butdysfunctional,moralcodethathetermed“amoralfamilism”thatimpededcooperationamongfamiliesorclansandthusthegrowthofassociationalties.Fukuyamaproposedasimilarculturalexplanationofthesourcesofcivilsociety,emphasizingtheculturalvalueof“trust.”Societiesexhibitinghighlevelsoftrustcreateself-governingassociationsinbothbusinessandsociallife,whereaslow-trustingsocietiesrelyonfamilialtieswhilethemanagementofpublicaffairsiscarriedoutbyacentralizedauthority(thestate).“Athrivingcivilsociety,”Fukuyamathereforeexplains,“dependsonapeople’shabits,customs,andethics—attributesthatcanbeshapedonlyindirectlythroughconsciouspoliticalaction
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andmustotherwisebenourishedthroughanincreasedawarenessandrespectforculture.12
Anotherlineofargument,developedbyAmericaneconomistsandpopularizedbythespreadoftheneoliberalideologyduringthepastthirtyyears,attributesthesedifferencestothedegreeofheterogeneityofdemandforpublicgoods.Accordingtothistheory,theinabilityofthemarkettosupplythelevelofcollectivegoodsthatcitizensdemandnecessitatesthatsuchgoodsarepaidbypublicfundingratherthanthroughordinarymarkettransactions.However,whenthedemandforpublicgoodsisdiversifiedduetodifferentpreferencesofdifferentsocio-demographicgroups,itisdifficulttoobtainthelevelofpoliticalconsensusneededtosecuresufficientpublicfundingforsuchgoods.Thissetofcircumstancesleadstothegrowthofthenonprofitsectortosupplythecollectivegoodsthatneitherthemarketnorthestatecanprovide.Accordingtothistheory,thelowerthelevelofheterogeneityinapopulation,thehigherthelevelofgovernmentprovisionofpublicwelfareservices,andthereforethelowerthelevelofTSdevelopmentneededtoprovidethe“collectivegoods”thatcitizensdemand.Inotherwords,thethirdsectorshouldbelessprominentwheregovernmentspendingislowest,andviceversa.13
Neitherofthesetheoriesisveryconsistentwiththefindingsreportedhere,however.Sofarastheculturaltheories,Europe,andespeciallytheEuropeanUnioncountries,showaremarkabledegreeofculturalsimilaritybyglobalstandards.Allthesecountriessharevirtuallyidenticalculturalandreligiousroots–theGreco-RomancivilizationandChristianity.VirtuallyeveryEuropeancountry’scultureemphasizestheimportanceofsocialsolidarity,altruism,helpingothers,civicvirtues,andengagementinpublicaffairs.Clearly,afactorthatissoubiquitouscanhardlybecountedontoexplaintheenormousvariationsthatexistinthemanifestationsoftheTSinEurope.Indeed,countrieswithverysimilarreligioustraditions,suchasItaly,IrelandandPoland,allpredominantlyCatholicnations,haveverydifferentlevelsofTSactivities,especiallytheirorganizationalcomponent.PortugalandSpainsharenotonlythesamereligionbutalsothesameculturaltradition,yetdiffermarkedlyintheirTSmanifestations.
12EdwardBanfield.(1958).TheMoralBasisofaBackwardSociety.NewYork:FreePress.FrancisFukuyama.(1995).Trust:TheSocialVirtuesandtheCreationofProsperity.NewYork:TheFreePress.13BurtonWeisbrod.(1977).TheVoluntaryIndependentSector.Lexington:LexingtonBooks;HenryHansmann.(1987).“EconomicTheoriesofNonprofitOrganizations.”InWalterW.Powell(ed.),TheNonprofitSector:AResearchHandbook,pp.27-42.NewHaven:YaleUniversityPress.
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This,ofcoursedoesnotmeanthatculturalnorms,valuesandideologiesdonotplayanyroleintheTSEsectordevelopment,butthattherelationshipbetweentheideologicalinfluencesandTSEisfarmorecomplexthantheculturalsentimentstheoriesclaim.Ontheonehand,thenormsandvaluescanconstrainevenpowerfulsocialinterests.Atthesametime,whetherparticularvaluesornormsgainsupportorlegitimacycanbeinfluencedbytheirconsistencywithgroupinterests.MaxWeberrecognizedthislatterpointinhisconceptof“electiveaffinity,”thetendencyofsocialactorstoleantowardculturalnormsandvaluesthatalignwiththeirpredispositionsandgroupinterests([1904-05]1958,seealsoHowe,1978).Thus,accordingtoWeber,Protestantreligiousdoctrinesemergingin15thand16thcenturyEuropegainedgroundinimportantpartbecausetheyweremorealignedwiththeeconomicinterestsofwealthymerchantsthanthetraditionalCatholicteachingrenouncingworldlypossessions.
Thissuggeststhatratherthanbeingtreatedasgeneralinfluenceswithoutobservablecausallinkstoparticularsocialgroupingsorspecificinstitutionaloutcomes,theculturalandideologicalinfluencesmustbelinkedtopowerandactionsofspecificsocialactors.Forexample,thelong-standingCatholicdoctrineofsubsidiarity,holdingthatsocialissuesoughttobeaddressedbythesocialunitclosesttothefamily,including,ofcourse,theparish,providedaconvenienttemplateforconservativeelementstouseinresistingworkerpressuresforexpandedstate-providedsocialwelfareprotectionsin19thcenturyGermanybychannellingsuchprotectionsthroughpolitically“safe”,religiouslyaffiliated,nonprofitorganizations.Henceasitwillbeexplainedinmoredetaillaterinthischapter,thiscreatedapatternofTSEdevelopmentthatweterm“welfarepartnership.”
Withregardtotheeconomictheorieslinkingtheriseofthethirdsectortoacombinationofmarketfailureandgovernmentfailurethatconstrainsgovernmentsocialwelfarespending,theevidencepresentedhereroundlyrefutesthem.Indeed,farfrombeingmorelimited,theEuropeanthirdsectorismuchlargerandmorerobustinpreciselythoseregions—NorthernEuropeandScandinavia—wheregovernmentsocialwelfarespendingishigher.Thisrefutesboththesemarketfailure/governmentfailuretheoriesandthecommonperceptionthatWesternEuropeancountrieshavebuilt“welfarestates.”Infact,whattheyhavebuiltare“welfarepartnerships”inwhichgovernmentshaveturnedmassivelytononprofitorganizationstodeliverystate-fundedsocialwelfareservices.Thishasbeenpossiblebecause,unliketheUS,EuropeancountrieshavedevelopedwhatLijphartterms“consensusdemocracy,”whichdiffersfromthewinner-take-allimageembodiedinthegovernment-failuretheorybymakingprovisionforproportional
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representationofminorityinterests.14Thismakesitpossibletobuildconsensusesamongvariousinterestgroupsandtherebygeneratesupportforamuchbroaderarrayofpublicgoodsthanthehypothesized“medianvoter”mightwantandeliminatesthebinary“either-or”choicebetweengovernmentorthirdsectorprovisionbydesigningcooperativearrangementsthatengageboth.Thismayexplainwhytheinverserelationbetweengovernmentsocialwelfarespendingandthesizeofthecivilsocietysectorpredictedbytheeconomictheoriestheoryturnsouttobesopowerfullyrefutedbytheavailablecross-nationaldata.
HowthenarewetoaccountforthesignificantdifferencesinTSsizeandcontoursamongthedifferentEuropeanregions?OnecluetotheanswertothisquestioncanbefoundinRobertPutnam’sinfluentialstudyofthesignificantvariationsintheeffectivenessofregionalgovernmentsinNorthandSouthofItaly.AlthoughPutnamnotesthedifferencesinculturalsentimentsbetweenNorthandSouthasacrucialfactor,heultimatelytracksthesedifferencestodifferenthistoricaldevelopmentexperiencesshapedbydifferentpoliticalpowerrelationsinthesedifferentregions.15AlthoughPutnamdoesnotdevelopthisargumentfurther,hisanalysissupportsamoregeneralexplanationofthedevelopingpatternsofTSdevelopmentthatthetwoauthorsofthischapterhavetermedthe“socialorigins”theoryofthirdsectordevelopment.16
Thistheorylinksthedevelopmentofthethirdsectortodifferentconfigurationsofpowerrelationsamongkeysocialactors,suchassocio-economicclassesandtheirorganizations,aswellkeysocialinstitutions,suchasgovernment,politicalparties,andorganizedreligion,incountriesduringtheperiodofindustrializationandmodernization.Thus,forexample,incountrieswhereindustrialandcommercialmiddleclasselementswereabletodiffusetheinfluenceofconservativelandedelitesandconsolidatetheirownpoliticalandeconomicpowerduringtheperiodofindustrialization,theywereabletoimposenationalpoliciesfavourabletotheireconomicinterestsinlimitedgovernmentinvolvementineconomicandsocialaffairs,andrelianceonmarketsandprivateinitiativeinaddressingthesocialproblemsresultingfromindustrialization.Theconsequencewastheemergenceofa“Liberalpattern”ofcivilsocietydevelopment,characterizedbya
14Lijphart,Arendt.(1999).PatternsofDemocracy:GovernmentFormsandPerformanceinThirtySixCountries.NewHaven:YaleUniversityPress.15RobertPutnam.(1993).MakingDemocracyWork:CivicTraditionsinModernItaly.Princeton:PrincetonUniversityPress16LesterM.Salamon,S.WojciechSokolowski,MeganA.Haddock,andAssociates,SocialOriginsofCivilSociety:ExplainingCivilSocietyDevelopment,Baltimore,JohnsHopkinsUniversityPress,forthcoming2017
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fairlysubstantialTSinstitutions,but,mostlydependentonprivatecharityfortheirsupport.InEurope,thispatternismostvisibleintheUnitedKingdomandSwitzerland.
Incountrieswhereindustrializationandthepartialliberalizationofsocialrelationsledtothesubstantialgrowthofaworkingclassandoforganizationsrepresentingitsinterests,butnottothepointofdisplacingthedominantpositionoflandedand/orindustrialorcommercialelites,adecidedlydifferentpatternemergedcharacterizedbygreaterstate-sponsoredsocialwelfareprotections—butchannelledthroughpolitically“safe,”religiouslyaffiliated,privatevoluntaryorganizations.SuchsolutionwasfavouredbytheCatholicChurch,whichdevelopedthedoctrineofsubsidiarity,holdingthatsocialissuesoughttobeaddressedbythesocialunitclosesttothefamily,including,theparishandChurch-affiliatedsocialwelfareassociations.Thisproduceda“WelfarePartnershipPattern”ofcivilsocietysectordevelopment,mostlyfocusedonserviceactivitiesinsteadofprotestandadvocacy,heavilysubsidizedbythestate,butsafelyheldincheckbyconservativereligiousorotherinstitutions.ThispatternwasmostpronouncedintheNorth-WesternEuropecountries,especiallyinGermany,IrelandandtheNetherlands,wheretheCatholicChurchwasrelativelypowerful,butsubsequentlyadoptedbyothercountriesnowmakinguptheEU.
Yetanotherpatternemergedwherethepowerofbothurbanandruraleliteshadbeenweakened,andwhereworkingclasselementscombinedwithurbanprofessionalswereabletoexertsubstantialinfluenceonemergingsocialwelfareprovision.Theupshotherewasasocial-democraticpatternwheresocialwelfareservicesaretreatedasa“right”ofallcitizens—notagiftbestowedbycharitableinstitutions—andaredelivereddirectlybygovernmentalinstitutionssubjecttopopularcontrolbycitizens.InEurope,thispatternemergedintheScandinaviancountriesandAustria.
Anotherconstellationofsocialclassandsocialactorpowerariseswherepre-modernlandedelementsretainpowerintothemoderneraandprolongeconomicstagnationthatthreatensthecountry’ssovereignty.Tocounteractthisthreat,militaryleaders,seniorcivilservants,urbanprofessionals,ormodernizingelitesstagearevolutionarytakeoverofstateinstitutionsinordertopushthroughprogramsofrapidindustrializationandmodernization.Tokeeppopularforcesatbayandmakeitpossibletochannelwhateversurplusisproducedintomodernizationratherthanconsumption,suchmodernizingelitesoftenfinditnecessarytolimitpersonalfreedomsandparticularlyrestrictthegrowthofcivilsocietyorganizationsthatcouldchallengegovernmentaldominanceanddisrupttherapidmodernizationagendathroughdemandsforgreaterpoliticalvoiceandbetterlivingstandards.Thisresultsina“StatistPattern”ofthirdsectordevelopmentcharacterizedby
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afairlysmallscaleofcivicinstitutionsoperatinginanarrowrangeoffieldsdeemedcriticalfornationaldevelopment.OneconsequenceofthisconstraintontheTSorganizationaldevelopmentisashiftingofthevoluntaryself-helpactivitiesfromtheorganizationaltotheinformalsocialsphere.InEurope,thispatternfirstemergedinRussia,Turkey,SpainandPortugal,butaftertheWorldWarIIwasforciblyexportedtoCentralandEasternEuropecountriesonthebayonetsoftheRedArmy.
ThissocialoriginstheorythusdoesabetterjobofexplainingtheregionalvariationsintheTSdimensionsinEuropethandothealternativetheories.FirstitexplainswhythesizeoftheorganizationalcomponentoftheTSinEasternEuropeancountriesismarkedlysmallerthanthatelsewhereinEurope,whilethesizeofdirectvoluntaryactionismarkedlylarger(Fig.7).Untilthe1990s,theCentralandEasternEuropeancountriesremainedtiedtothestatistpatternunderwhichtheorganizationalcomponentoftheTSremainedfirmlyinstrictstatecontrol.Asthelegitimacyofthepoliticalregimewaned,sodidthelegitimacyofthesestatecontrolledcivicorganizations.Asaconsequence,virtuallyallspontaneouscivicactivitieswereconductedintheinformalsphereofneighbourlyself-helpactivitiesandunorganizedsocialmovements.Althoughtheeconomicandpoliticalreformsofthe1990sandthesubsequentEUaccessiondramaticallychangedtheenvironmentinwhichcivicorganizationsoperate,thenormsofsocialbehaviourthatfavourdirectvolunteeractionoverparticipationinorganizedcivicactionstilllinger.
AsimilarprocesstookplaceintheMediterraneancountries,manyofwhichfellunderthestatistregimeduringmodernization.However,unlikeinCentralandEasternEurope,thestatistregimesintheMediterraneancountriesweredemocratizedmuchearlier,in1945inItalyandintheearly1970sinSpainandPortugal.AlsothesecountriesjoinedtheEUmuchearlierthantheirEasternEuropeancounterparts.Consequently,theyenjoyedthebenefitsofasupportiveenvironmentforcivicorganizationaldevelopmentforaconsiderablylongerperiodthantheCEEcountries.
ThesocialoriginstheoryalsohelpsusunderstandtheotherwisepuzzlingdominanceofexpressiveoverserviceactivitiesinthethirdsectoroftheScandinaviancountries(Fig.8).SincethesecountriessharemanysimilaritieswithotherEuropeancountries,thisdifferencecannotbeeasilyexplainedbythesupposedpeculiaritiesoftheScandinaviancultureorScandinavianconsumerpreferences.ThesocialoriginstheoryaccountsforthisdifferencebypostulatingtwodifferentpatternsofcivilsocietydevelopmentinthesepartsofEurope.TheNorth-WesternpartsofEuropedevelopedthewelfarepartnershippatterninwhichprivate,oftenreligiouslyaffiliatedorganizations,arejuniorpartnersof
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governmentsindeliveringpublicwelfareservices,butthestrongpositionoftheworkingclassandruralelementsintheScandinaviancountriesledtoasocialdemocraticregimeinwhichpublicwelfareservicesweredeliveredpredominantlybythestate.Relievedofthisserviceburden,TSorganizationscouldfocustheireffortsonexpressiveactivities,suchassports,culture,orcivicactivism.
ThesocialoriginstheoryalsoexplainswhythegovernmentshareofnonprofitrevenueisconsiderablyhigherinNorthernEuropethanelsewhereinEurope(Fig.9).North-WesternEurope,especiallyGermanyandtheNetherlands,pioneeredthepoliciesofharnessingcivicorganizationsintotheprovisionofpubliclyfundedservices.Althoughtheoriginalimpulsesbehindthesepoliciesweretocounteracttheradicalizationoftheworkingclass,theyprovedtobeaveryeffectivemechanismofpublicservicedeliverythatcombinesthesecurityofpublicfundingwiththeresponsivenessofrelativelysmallandnon-bureaucraticcivicorganizations.Asaresult,thewelfarepartnershippatterncontinuedtodevelopevenaftertheoriginalmotivationbehinditlostitsrelevance.
Tosummarize,thesocialoriginstheoryofthirdsectordevelopmentthuscarriesusconsiderablyfardowntheroadtowardexplainingthediversesize,shape,functions,andsupportstructureoftheTSinEurope,anddoessoconsiderablybetterthanthealternativeexplanationsthathavebeendeployeduptonow.WhattheanalysishereshowsisthatwhiletheTSmaybeaconduitforaltruisticsentimentsandpersonalpreferences,thesizeofthesectorandtheshapethatittakesdependheavilyonthebroaderstructuresofpowerrelationshipsinsociety.Restoringconsiderationsofpowertothecentreofanalysisofthethirdsectorthusemergesasacentralimperativeifwearetounderstandthepaththatcivilsocietydevelopmenttakes.
ThisanalysisalsosuggestsasignificantconnectionbetweenthegrowthoftheTSandthestrengthoflabourmovementsandtheirpoliticalextensions.Thisconnectionisoftenmissedinpublicperception,as“civilsociety”and“organizedlabour”areoftenseenastwoseparatesocialinstitutionspursuingwhollydisparate,ifnotmutuallyantagonistic,goals.Butthecontributionofthelabourmovementtothedevelopmentofthecivilsocietysectorissignificantandtakestwodifferentforms.Inthefirstplace,organizedlabourhascreatedawidearrayofself-helpgroupsandclubsservingtheneedsoftheworkingclass.Andsecond,organizedlabour’sdemandshaveoftenleveragedgovernmentpoliciesthatcreatefavourableconditionsforgeneralcivilsocietysectorgrowth.
Thesocialoriginstheorycannotonlyexplainexistingdevelopments,butalsohelp
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forecastthefuture.Thiscanoffervaluableinsightsintopossibleoutcomesinrapidlychangingpartsoftheworld.Anditcanofferusefulinsightsforthedesignofpublicpoliciesfacilitativeofrobustthirdsectordevelopment.Butforthesetopics,itisnecessarytoturntosubsequentportionsofthisreport.
3 ConclusionThefollowingfiveconclusionsthusemergefromthisinitialoverviewofthesizeandcontoursoftheThirdSectorinEUmembercountries:
1.Inthefirstplace,itispossibletoformulateacoherent,systematic,andoperationalcross-nationaldefinitionofthissectorthatcanbeutilizedtoassembleempiricaldescriptionofthissector.
2.Despitelimitationsintheavailabledatasystems,itispossibletocompileacross-nationallycomparablequantitativedataonthebasicdimensionsoftheThirdSector.
3.AninitialefforttogeneratesuchdatarevealsaThirdsectorthatisfarmorewidelydispersedandfarlargerthancommonlyrecognized,rankingasoneofthelargestemployersandcontributorstoeconomiclifeofallmajorindustries,andprovidingaswellvehiclesfortheexpressionofahostofvaluesandintereststhataddenormouslytothequalityofnationallife.
4.Althoughthissectorisquitewidespreadandextensiveintheaggregate,italsoexhibitsenormousvariationsfromcountrytocountry.Thesevariationsgowellbeyondthesimpledimensionsofsizeandeconomicimpactandencompassfunctionstheseinstitutionsperform,andhowtheysupportthemselves.
5.Thesecross-nationalvariationsinthecontoursoftheThirdSectorcanbeexplainedbydifferentpatternsofhistoricaldevelopmentinEurope;threesuchpatternsareespeciallyvisible;thewelfarepartnershippatternprevailinginWesternEurope,inwhichThirdSectorinstitutionsservedasinstrumentsofdeliveringpublicwelfareservices,thesocialdemocraticpatternprevailingintheScandinaviancountries,inwhichthestateassumedthedeliveryofmostpublicwelfareserviceswhileThirdSectorperformedmainlyexpressivefunctions,andthestatistpatternprevailinginEasternEuropeancountries,wheretheThirdSectorfacedinstitutionalobstaclestodevelopmentundertheSovietsystem.
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Appendix1:MethodologyforestimatingthesizeoftheTSinEuropeFollowingtheconceptualframeworkdevelopedbytheTSIproject,thethirdsectorconsistsofthefollowinginstitutionalcomponents:nonprofitinstitutions,cooperatives,socialenterprises,andindividualhumanactivitiesoutsideorganizations.Accordingtothisconceptualframework,allnonprofitinstitutionsareinthethirdsectorscope,howeveronlysomecooperativesandsocialenterprisesthethirdsector'sdefinitionalfeatures.Thisframeworkalsodefinestheindividualactivitiesinscopeasthosethatprovideunpaidworkperformedforpublicbenefitratherthanthatofthevolunteers’householdsorfamilies.Themethodologyusedinthisprojecttoestimatethesizeofthethirdsector'sestimateseachofthesecomponentsseparatelyandthenaddsthoseestimatestogethertoarriveattheestimateofthefulltimeequivalentemploymentintheentirethirdsectorsize.
1.NonprofitInstitutions(NPIs)
TheexistingdatasourcesontheemploymentinNPIsincludetheJohnsHopkinsComparativeNonprofitSectorProject(LesterM.Salamon,S.WojciechSokolowskiandMeganHaddock,SocialOriginsofCivilSociety:AComparativeHistoricalApproach,Baltimore:JohnsHopkinsUniversityPress,forthcoming)andNPISatelliteAccountscompiledbynationalstatisticalagencies.Thesetwodatasourcescover18EUcountries(Austria,Belgium,CzechRepublic,Denmark,Finland,France,Germany,Hungary,Ireland,Italy,Netherlands,Poland,Portugal,Romania,Slovakia,Spain,Sweden,andtheUnitedKingdom)andNorway.Thedatareportedinthesesourceswere“updated”to2014bycalculatingtheratiosofNPIemploymenttototalemploymentfortheyearforwhichthedatahavebeenoriginallyreported,andthenapplyingtheseratiostothe2014employmentinrespectivecountries(asreportedbytheEurostat).ThismethodologyassumesthattheNPIshareofthetotalemploymentremainsmoreoflessconstantovertime.Inasmuchasthissharegrowsovertime,thismethodologyslightlyunderestimatestheactualsizeofNPIemployment.
Fortheremaining10EUcountriesonwhichnoNPIdataareavailable,aregressionbasedestimationmethodologywasused.ThismethodologyusesthemultivariatelinearregressionmodeltoestimatetheNPIshareoftotalemploymentin18countriesonwhichtheNPIdataarealreadyavailable,andthenapplyingtheregressionequationtocountriesonwhichnoNPIdataexist.Severalpredictorvariablesweretested,andthefollowingwereselectedbasedontheamountofexplainedvariance:perCapitaGDPinUSD,
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servicesshareofGVA,andNPISHshareofGDP.Thismodelexplains71.5%ofvariance(66%adjusted).ForcountriesonwhichNPISHdatawerenotavailable,themissingdatawerereplacedaveragesforEasternandWesternEuropeaccordingly.
TheregressionequationwasusedtopredictNPIshareoftotalemploymentin10countrieswheretheNPIdataarenotavailable.ThefollowingadjustmentstothepredictedNPIsharevaluesinthose10countriesweremadetorestrictitsvariabilitytotheactuallyobservedrange:
ForcountrieswherethepredictedvalueoftheNPIshareislowerthanthelowestobservedvalueinthe18countrydataset,thelowestobservedvalue(forRomania)wasused;
Forcountrieswherethepredictedvaluewashigherthanthehighestobservedvalueinthe18countrydataset,thehighestobservedvalue(forthewereusedforupperandlowerboundaries.
SincethisestimationmethodologyresultsinareasonablyaccuratepredictionofNPIemploymentinthe10countriesasagroup,butpredictionsforindividualcountriesmaybelessaccurateandshouldbeviewedwithcaution.These10countriesasagroupaccountforonlyabout5percentofNPIworkforce(paidandvolunteers)coveredbythisstudy.17
2.Cooperativesandmutualsocieties
ThedataoncooperativesandmutualcomefromJoséLuisMonzónCamposandRafaelChavesÁvila,TheSocialEconomyintheEuropeanUnion,ReportdrawnupfortheEuropeanEconomicandSocialCommitteebytheInternationalCentreofResearchandInformationonthePublic,SocialandCooperativeEconomy(CIRIEC),2011,exceptforPolandwheremoreaccurateestimateswereprovidedbythelocalpartner.ThereportprovidesemploymentdatainallEUmembercountriesthefollowingseparatelyidentifiedtypesoforganizations:cooperatives,mutual,andassociations.SinceNorwayisnotanEUmembercountry,thedataforthiscountryarenotincludedinthispublication.However,theTSIprojectresearchteamhasdeterminedthatallcooperativesandmutualsthatare
17DataforpredictorvariablescomefromthenationalaccountsaggregatesavailableattheUNSDwebsitehttp://data.un.org/Explorer.aspx?d=SNAAMA
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inTSIscopearealreadyincludedintheNPISatelliteAccountreleasedbyStatisticsNorway,andthosenotcoveredbytheNPISAarelikelytobeoutofscope.
TheTSIresearchteamhasalsodeterminedthatmostmutualsocietiesarealsoouttheTSscope.Asaconsequence,employmentinthistypeofinstitutionshasnotbeenincludedintheestimatesofthesizedoftheTS,exceptinFrancewhereasmallnumberofsuchsocietieswereincluded.ItwasfurthermoreassumedthatassociationsarelikelytobeNPIsandthusalreadycoveredintheestimatesofNPIemployment.Consequently,thefiguresreportedfortheseinstitutionsbyMonzónandChaveswerenotincludedtoavoiddoublecounting.
Finally,theTSIconceptualframeworkstipulatesthannotallcooperativesmeettheTSdefiningcriteria,andsomeofthemareoutofscope.Atthistime,theTSIresearchteamhasnowayofdeterminingwhatshareofemploymentincooperativesisintheTSscope.Itwasthereforeassumedthatonaverage,50percentofthatemploymentisinscope.Thisassumptionwillberevisedasmoreinformationbecomesavailable.
Insum,thetentativeestimationoftheFTEemploymentinthiscomponentoftheTSIishalfoftheemploymentincooperatives,asreportedbyMonzónandChaves.
3.Socialenterprises
Nodataonsocialenterprisesareavailableatthistime.However,theTSIprojectreviewsuggeststhatmostoftheseinstitutionalunitsarealreadyincludedintheNPIorthecooperativecomponent,sotheremainingsocialenterprisesthatareintheTSscopewouldlikelyaddverylittletothetotal.
4.Directvolunteering
ThedataondirectvolunteeringcomefromestimatesbasedonnationaltimeusesurveysandreportedbyOECD.18TUSassignstimerespondentsspendonvariousactivitiesduringthe24-hourperiodandextrapolatesthosevaluestotheentirepopulation.Thisallowsestimationofthetotaltimespendontheseactivitiesbytheentireadultpopulationofacountryduringtheperiodofoneyear,andconvertingthattimetoFTEemployment,assuming1,760hoursperaFTjob.Thatnumbermayactuallyvaryfromcountryto18Methodologicaldocumentationonnationaltime-usesurveys(TUS)usedfortheseestimatesisinMirandaV.(2011)"Cooking,CaringandVolunteering:UnpaidWorkAroundtheWorld",Miranda,V.(2011),"Cooking,CaringandVolunteering:UnpaidWorkAroundtheWorld",OECDSocial,EmploymentandMigrationWorkingPapers,No.116,OECDPublishing.doi:10.1787/5kghrjm8s142-en.
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country.Timespentcarefornon-householdmembersreportedinTUStabulationswasusedasaproxyfordirectvolunteering.Thisprobablyunderestimatesdirectvolunteeringthatdoesnotinvolvehelpingotherhouseholds,suchasunorganizedcommunityworkorprotestactions.
EighteenEuropeancountriesarecoveredbytheTUSdataintheOECDreport.Thecountriesare:Austria,Belgium,Canada,Denmark,Estonia,Finland,France,Germany,Hungary,Ireland,Italy,Netherlands,Norway,Poland,Portugal,Slovenia,Spain,Sweden,andUnitedKingdom.However,forPolandanalternativedatasource(GUS,VolunteeringThroughOrganizationsAndOtherTypesOfUnpaidWorkOutsideOwnHousehold–2011,Warsaw,2012)wasusedthatoffersamoreaccurateestimatebasedontheILOmethodologyoutlinedintheManualontheMeasurementofVolunteerWork.Thevaluereportedinthelattersourceisabout5percentlowerthanthatestimatedfromtheTUSdataforthatcountry.Fortheremaining11countriescoveredbythisreport,theaveragescalculatedseparatelyforWesternandEasternEuropewereused.
Theestimationmethodologyusedtheaveragenumberofminutesperadultspendoncaringfornon-householdmembersandvolunteeringreportedinTUSandmultipliedthatnumberby365daysandbythesizeofadultpopulation(15-65yearsofage)inarespectivecountrytoestimatethetotalnumberofhoursspendontheseactivitiesduringoneyear.ThatnumberwasthenconvertedtoFTEbydividingitby1,760hours.
5.EstimationoftheTSsize
Employmentineachoftheinstitutionalcomponentdescribedabove(1through4)wassummedforeachofthe28countriescoveredbythisreporttoarriveatthetotalsizeofworkforce(paidandvolunteers)intheTS.Thevaluespresentedhereareconservativeestimatesofthatsizeduetolimitedabilitytoestimatesocialenterprisesandtheaccuratevalueofemploymentincooperatives.
6.Estimationofserviceandexpressivesharesoftheworkforce.
ThecoredataforthisestimationwerecollectedtheJohnsHopkinsComparativeNonprofitSectorProjectfor20Europeancountries.UnweightedcountryaveragesoftheseshareswerecalculatedtoestimatetherespectivesharesoftheNPIcomponentintheEUasawhole.ThisestimatewasusedasthebasisforthefiguresfortheentireThirdSectorbyfactoringintheworkforceofthecooperativesanddirectvolunteering,whichwastreatedasperformingmainlyservicefunction.Althoughitispossiblethatsomedirectvolunteeringwasalsoperformingtheexpressivefunction,thiskindofdirect
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volunteeringwasnotcapturedbytheTUSdatathataskedonlyforhelpingotherhouseholds,whichisservicebydefinition.ThismethodprobablyunderestimatestheexpressiveshareoftheTSworkforce.
7. EstimationofTSrevenueshares.
Thecoredataforthisestimation,representingpercentagesharesofgovernmentpayments(grantscontractsandreimbursements),fees(marketsales,membershipdues,andinvestments),andprivatephilanthropyinNPIrevenueswerecollectedtheJohnsHopkinsComparativeNonprofitSectorProjectfor20Europeancountries.UnweightedcountryaveragesoftheseshareswerecalculatedtoestimatetherespectivesharesoftheNPIcomponentintheEUasawhole.IntheEuropeancontext,governmentreimbursementsforindividualservicesaccountformostofgovernmentsupporttoNPIs,thereforetheshareofgovernmentsupportreportedhereissignificantlylargerthanthatreportedinconventionaleconomicstatisticsthattreatsuchreimbursementsasmarketsalesindistinguishablefromtypesofmarketsales.
ThisestimatewasusedasthebasisforthefiguresfortheentireThirdSectorbyfactoringintheestimatedshareofcooperativerevenue,whichisassumedtocomemainlyfromfeeincome(marketsalesandinvestment).ThecooperativeshareoffeerevenuewasincludedinproportiontocooperativeshareofTSemploymentontheunderlyingassumptionthatemployeecompensationisfundedbygovernmentpayments,feesandphilanthropyinthesameproportionasthesharesofthesethreerevenuestreams.Thevalueofdirectvolunteering,estimatedatthereplacementcost,wascountedasprivatephilanthropyandfactoredinproportionallytothedirectvolunteeringshareoftheTSworkforce.
Appendix2Table.EstimatesofTSFTEworkforceinEUandNorway,2014
CountryCoops&mutuals*
Directvolunteers TotalTS
Total2014employment Otheras%oftotalemployment
Paid(FTE) ofwhichcoops Volunteers(FTE) ofwhichcoops Total(FTE) (FTE) (FTE) (FTE) Paid Volunteers Total Coops* Directvol TS
NorthernEuropeAustria 160.545 5.580 233.961 8.132 394.506 31.000 200.141 625.646 4.112.700 3,9% 5,7% 9,6% 0,8% 4,9% 15,2%Belgium 451.951 1.219 129.639 350 581.590 6.774 185.867 774.230 4.543.500 9,9% 2,9% 12,8% 0,1% 4,1% 17,0%France 1.535.368 38.632 680.000 17.110 2.215.368 214.622 139.572 2.569.562 25.802.200 6,0% 2,6% 8,6% 0,8% 0,5% 10,0%Germany 2.397.618 74.723 1.307.580 40.752 3.705.199 415.129 1.479.321 5.599.649 39.871.300 6,0% 3,3% 9,3% 1,0% 3,7% 14,0%Ireland 181.885 3.900 48.794 1.046 230.679 21.664 76.636 328.979 1.913.900 9,5% 2,5% 12,1% 1,1% 4,0% 17,2%Luxembourg 22.657 174 18.070 139 40.727 967 9.664 51.357 245.600 9,2% 7,4% 16,6% 0,4% 3,9% 20,9%Netherlands 858.045 16.565 488.632 9.433 1.346.677 92.027 281.756 1.720.459 8.236.100 10,4% 5,9% 16,4% 1,1% 3,4% 20,9%UnitedKingdom 1.671.866 21.240 1.422.360 18.070 3.094.226 118.000 1.062.630 4.274.856 30.641.800 5,5% 4,6% 10,1% 0,4% 3,5% 14,0%SouthernEuropeCyprus 23.341 456 18.615 364 41.956 2.534 15.238 59.727 362.700 6,4% 5,1% 11,6% 0,7% 4,2% 16,5%Greece 244.370 1.348 194.891 1.075 439.261 7.492 180.156 626.909 3.536.200 6,9% 5,5% 12,4% 0,2% 5,1% 17,7%Italy 938.135 101.554 597.390 64.668 1.535.525 564.191 812.383 2.912.099 22.278.900 4,2% 2,7% 6,9% 2,5% 3,6% 13,1%Malta 10.527 23 8.396 18 18.923 125 7.327 26.375 181.400 5,8% 4,6% 10,4% 0,1% 4,0% 14,5%Portugal 175.092 4.625 55.680 1.471 230.772 25.696 166.405 422.873 4.499.500 3,9% 1,2% 5,1% 0,6% 3,7% 9,4%Spain 722.223 58.176 348.830 28.099 1.071.053 323.199 914.613 2.308.864 17.344.200 4,2% 2,0% 6,2% 1,9% 5,3% 13,3%ScandinaviaDenmark 137.358 6.368 114.187 5.294 251.545 35.379 123.637 410.560 2.714.100 5,1% 4,2% 9,3% 1,3% 4,6% 15,1%Finland 73.018 8.469 85.165 9.878 158.182 47.050 145.159 350.391 2.447.200 3,0% 3,5% 6,5% 1,9% 5,9% 14,3%Norway 84.054 143.637 - 227.691 - 85.647 313.339 2.626.600 3,2% 5,5% 8,7% 0,0% 3,3% 11,9%Sweden 194.128 15.913 355.741 29.162 549.869 88.408 155.830 794.107 4.772.100 4,1% 7,5% 11,5% 1,9% 3,3% 16,6%CentralandEasternEuropeBulgaria 18.960 3.717 7.909 1.550 26.869 20.650 183.595 231.114 2.981.400 0,6% 0,3% 0,9% 0,7% 6,2% 7,8%Croatia 70.512 29.412 - 99.924 - 107.770 207.694 1.565.700 4,5% 1,9% 6,4% 0,0% 6,9% 13,3%CzechRepublic 101.901 5.236 26.413 1.357 128.314 29.089 269.964 427.367 4.974.300 2,0% 0,5% 2,6% 0,6% 5,4% 8,6%Estonia 20.652 887 8.614 370 29.266 4.925 38.931 73.122 624.800 3,3% 1,4% 4,7% 0,8% 6,2% 11,7%Hungary 89.620 7.711 16.992 1.462 106.612 42.841 255.532 404.985 4.100.800 2,2% 0,4% 2,6% 1,0% 6,2% 9,9%Latvia 34.170 40 14.253 17 48.422 220 50.334 98.977 884.600 3,9% 1,6% 5,5% 0,0% 5,7% 11,2%Lithuania 7.415 807 3.093 337 10.508 4.486 74.919 89.913 1.319.000 0,6% 0,2% 0,8% 0,3% 5,7% 6,8%Poland 212.900 22.842 172.700 18.529 385.600 126.900 1.243.900 1.756.400 16.033.200 1,3% 1,1% 2,4% 0,8% 7,8% 11,0%Romania 28.107 3.094 36.576 4.026 64.683 17.187 515.288 597.157 8.613.700 0,3% 0,4% 0,8% 0,2% 6,0% 6,9%Slovakia 19.943 2.348 7.637 899 27.580 13.045 146.491 187.116 2.363.100 0,8% 0,3% 1,2% 0,6% 6,2% 7,9%Slovenia 42.972 309 17.924 129 60.896 1.714 33.813 96.424 916.800 4,7% 2,0% 6,6% 0,2% 3,7% 10,5%TotalEU+Norway 10.529.332 405.955 6.593.090 263.734 17.122.423 2.255.308 8.962.520 28.340.251 220.507.400 4,8% 3,0% 7,8% 1,0% 4,1% 12,9%
*ExcludingcoopsandmutualsthatareNPIs
NPIs NPIsas%oftotalemployment