Last weekend the Malta Council for the Voluntary Sector organised a conference with the theme ‘Building Resilience within the Voluntary Sector’. The conference was an opportunity to take stock of developments in this sector, which attracts around 20 per cent of the Maltese population.
A survey conducted in 2016 shows that around one in five Maltese persons undertake some voluntary work. It was also time to look forward and seek ways and means of ensuring that the voluntary sector is well geared to exploit the opportunities of the future.
My interests in life are such that I look at things from an economic perspective. Some may query the link between the business sector, the economy and the voluntary sector. This may seem a fair question. However it belies a fundamental assumption, which in my opinion is flawed.
The fundamental assumption that people make when asking such a question is that the voluntary sector involves unpaid philanthropic work. The voluntary sector is associated with volunteering, which is not expected to represent a paid job. For this reason, the voluntary sector’s contribution to the economy is seen as valueless.
This opinion may even gain ground when we consider that locally, we have had examples of the private sector edging out organisations operating in the voluntary sector. This indicates that as a country we still do not fully appreciate the importance of what is referred to as the third sector.
Working in the third sector provides
opportunities for increased social contact and social cohesion
A cursory internet search would show that the third sector includes voluntary and community organisations, social enterprises and cooperatives. This sector is independent of government and operates on a not-for-profit basis.
Operating on a not-for-profit basis does not mean that activities of voluntary organisations need to operate at a loss. It means that any surplus generated is re-invested in the organisation or to support similar organisations. No individual or individuals lays hands on the surplus generated. However, an organisation would still need to operate on a professional basis.
This again may lead to someone thinking that the third sector has no value in an economy. They do not stop to think what it would cost society if the activities being done by the third sector were done on a commercial basis or undertaken by the government.
It is indeed unfortunate that the third sector’s contribution to the total value added in an economy goes unrecorded. This is because the third sector exists to create social wealth and not material wealth. And I dare say that economic wealth is not only material wealth. That has been amply proved by this year’s Nobel Prize award in economics.
The third sector is known to produce positive externalities in an economy. This has been tried and tested in a number of economies, even within the EU. The primary objective of third sector organisations is very often social, environmental, cultural, educational or something similar.
The third sector does not only provide job satisfaction to persons operating in it but also provides them with opportunities for upskilling. Working in the third sector provides opportunities for increased social contact and social cohesion, both elements that are necessary for the proper functioning of an economy.
Then there is also the concept of the social enterprise to consider. In some countries, this has been a way of creating jobs or to manage assets expropriated from criminal organisations. In our country this does not apply. However, social enterprises can be a hotbed for innovation in the management of organisations and for technical innovation. And this is something that is very relevant for Malta.
I strongly believe that our country should give more space to the third sector. It can become a significant contributor to the economy if given that space. Our economy will be richer with a strong third sector.