Third Sector´s reality in Spain and Crisis of the Welfare State: Challenges and Trends

Abstract

The Third Sector holds the strategic value of contributing to the general welfare. In order to fully understand its size and facilitate a global picture of its economic and social dimension in Spain, several approximations are presented, providing facts and figures that highlight its relevance as an important economic and social force. It is a sector that generates substantial employment and wealth, as well as a tremendous social impact as subsidiary in the Welfare State vis-à-vis the institutional role of the State. In this sense, the Third Sector carries out increasing advocacy in defence of the rights of vulnerable groups and/or in risk of exclusion, promoting participatory democracy, and managing services to these groups, addressing the social needs of those groups that are not covered under the institutional logic of public and/or as a way of reducing costs. Thus, the current socioeconomic context subdues the Third Sector to strong pressures, such as the need to address increasing social needs and generate social innovation in the framework of budget cuts and spending constraints. So, the challenges of the Third Sector are outlined; particularly, the need for a new economic and financial management model allowing the transition from being subsidiary to the State to being a collaborator.