Players in the Public Policy Process : Nonprofits As Social Capital and Agents

This book focuses on the nonprofit organization as a social capital asset and agent in all phases of the public policy process--from influencing political parties, platforms, and choice of candidates to the formulation and implementation of public policy including the facilitation of transactions. This book demonstrates the universal utility of the principal-agent paradigm for analyzing nonprofits in foreign or domestic policy, sectarian or faith-based, scientific or social as well as the regulatory (not just participatory) powers of these organizations over market and nonmarket actions as a matter of public, collective policy. Placing the nonprofit in a principal-agent framework, the book emphasizes such topics as sources of conflict in public expectations and organizational performance, the moral hazard and benefits of organizational self-interest, tax exemption as compensation or a reservation price rather than just a subsidy, the role of social service organizations as managers of adverse social risks, and their inherent competitive advantage (even when faith-based) over firms as agents of choice for social service contracts from a strictly business perspective. It also deals with the role of nonprofits in governance such as over common pool resources, the moral hazard of policy, and the probability that the nonprofit could be an agent of distortions. This book goes beyond the economics of market failure and adds political, policy and administrative sciences, economic sociology, and the theory of contracts to encapsulate these organizations as agents and essential players in any open and democratic public policy process. This Book Systematically Develops the perspective of nonprofits or non-governmental organizations (NGOs) as social capital assets and agents of public policy within the principal-agent paradigm and across public purposes-foreign or domestic, religious or sectarian, in developed or developing countries. The perspective has universal applicability and allows us to go beyond assumptions of market or government failure. Moreover, the perspective reflects the competitive situation in which nonprofits frequently find themselves when bidding against firms for government contracts. The analysis identifies five factors that could offer nonprofits a clear, competitive advantage over firms and governments in certain contract bidding. The perspective yields a set of implications for the strategic positioning of nonprofits in the public policy arena, and yields a new functional classification that includes nonprofits (not merely as service providers), but as managers of significant social risks, as market and transaction regulators, and as centers of collective action along the full spectrum of public policy processes and issues. Nonprofits influence our electoral choices of politicians (policymakers) and through the latter, nonprofits influence the appointments of those who design, plan, and administer policy within the public bureaucracy. Inside and outside the bureaucracy nonprofits influence policy choices, the protocols, the practices, and the success or failure of policy implementation. The central contribution of this book is the articulation of a perspective of how nonprofits play these varied roles as social capital assets and agents for the public's purposes and the subsequent theoretical, practical, and managerial implications of this functional view This Book Systematically Develops The Perspective Of Nonprofits Or Non-governmental Organizations (ngos) As Social Capital Assets And Agents Of Public Policy Within The Principal-agent Paradigm And Across Public Purposes-foreign Or Domestic, Religious Or Sectarian, In Developed Or Developing Countries. The Perspective Has Universal Applicability And Allows Us To Go Beyond Assumptions Of Market Or Government Failure. Morever, The Perspective Reflects The Competitive Situation In Which Nonprofits Frequently Find Themselves When Bidding Against Firms For Government Contracts. The Analysis Identifies Five Factors That Could Offer Nonprofits A Clear, Competitive Advantage Over Firms And Governments In Certain Contract Bidding. The Perspective Yields A Set Of Implications For The Strategic Positioning Of Nonprofits In The Public Policy Arena, And Yields A New Functional Classification That Includes Nonprofits (not Merely As Service Providers), But As Managers Of Significant Social Risks, As Market And Transaction Regulators, And As Centers Of Collective Action Along The Full Spectrum Of Public Policy Processes And Issues. Introduction -- The Policy Significance Of Nonprofit Organizations: Beyond The Limits Of Failure -- Social Capital, The Nonprofit, And Agents Of Public Policy -- Nonprofits As Agents Of Public Policy: A Paradigm Of Principle And Agents -- The Choice Of Nonprofits As Agents Of Public Policy -- Housing And Community Development: A Case Study Of An Agency Function -- The Performance Of Agents: Acute Care Hospitals And Community Benefits -- Policy Formation, Nonprofit Advocacy, And The Principal-agent Framework -- Regulating The Finances Of The Agent. Herrington J. Bryce. Includes Bibliographical References (p. [237]-262) And Indexes. Annotation "Insightful, innovative, and well-grounded theoretical and policy approaches to the role and niche of nonprofits; strongly recommended to scholars in the social sciences, policy analysts, and public officials."--Julian Wolpert, Henry G. Bryant Professor of Geography, Public Affairs, and Urban Planning; Chair, Program in Urban and Regional Planning, Woodrow Wilson School, Princeton University "The increasing role of nonprofits as agents of public purpose creates both opportunities and risks. This book helps us better to understand both the sources of the opportunities and the nature of the risks."--Steven Kelman, Weatherhead Professor of Public Management, John F. Kennedy School of Government, Harvard University This book carefully develops the perspective of nonprofit organizations as social capital assets and agents of public policy within a principal-agent framework. It shows the practical as well as managerial and marketing advantages of such an approach, one that can lead to serious questions about many of the existing views that all nonprofits result from market or government failure. Bryce provides a more positive, cross-national and inclusive perspective on these organizations that applies across all of their disciplines and in developed or developing countries alike.