Contemporary Trends: Contractualism And The Third Sector In Australia

Contractualism And The Third Sector In Australia


Many people in Australia are concerned about policy of contractualism and workforce-development. It is more to do with the sustainability in the third sector and in other words, the role of the community and faith based service providers.  There is a problem because profit making encourages hard work and seeking of more opportunities. On the other hand, non- profit service providers do not increase their efforts because they lack motivation (Evans & Shields, 2006). Consequently, there is little economic benefits to the country. This is why Australian government is changing the trend and is encouraging profit making organizations even in the area of environmental conservation.  

Contractualism and the Third Sector in Australia

Australian government new policies in regard to contractualism and the third is focusing on the idea of preventing the country from suffering financial crisis in the future. The country escaped the experience of many others who suffered tremendously during the 2008 global recession (Kenny, 2010. The changes that are arising are being brought by the many findings from various researchers who question the third sector including its accountability. They argue that the use of the non- profit service providers has negative impacts in the society.

Carson and Kerr (2010) observes that the government requirements for detailed prescriptions about the working of the Third Sector Organisations (TSOs). On the other hand, there is revelation of an incomplete application of contracting procedures of the TSOs. This is view of the quasi- market approach which helps in the measuring of the operations of the forms of non- profit oriented service providers in the country. Consequently, it becomes clear that despite their provision of the reports to the government as it is required, they are not effective and the reports lack meaning. Their main challenge is poor funding although there many others which do not apply at all times including lack of competent expertise (Carson and Kerr, 2010).

It has deemed necessary to come up with a more complex and effective method of evaluating the performance of TSOs . Most government departments’ failure to have the relevant resources and procedures have not been monitoring and evaluating the contract involving the NGOs.  Similarly, there is little that is being done by the third sector service providers to enhance their customer satisfaction (McGregor-Lowndes and Turnour, 2003). This is unlike the profit making entrepreneurships which embrace innovation and seek to give the best as they fear competition (Goddard, 2011). The government departments are now trying to develop methods to scrutinize the TSOs and see that they help in improving the lives of the Australian population to the maximum level.


 The earlier poor operations of the Third Sector Organisations (TSOs) have led to changes in the government policies regarding this section of service providers. The move is promoted by the government receiving a wide a range of criticisms from the elites who perceive the TSOs as lacking credibility (Spall and Zetlin, 2004). The government has sensitized on how to build more capacity including through funding. Also, proper evaluations of the TSOs will ensure that the society experience most benefits from the sector. The TSOs should employ the best qualified part of the society labour force. Their reports are supposed to be well scrutinized and see that the organizations. If an organization is not well performing, its contract should be withdrawn.


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