Government NPO Policy: the Korean Experience
by Tae-Kyu Park
1. Changing environments and role of nonprofit sector
From the perspective of economic theory, the role of the private nonprofit sector is to fill the gap that a government cannot eliminate or make up for in an effective way. Demand for participation of non-governmental organizations (NGOs) in a variety of nonprofit activities comes from failure of government in those areas. This argument is based on the notion that government and private sector nonprofit organizations (NPOs) complement each other but are not a substitute for one another. In some areas, such as social welfare services, uniformed supply of public goods or services cannot meet all the demands of the population with a variety of tastes of social services. Nonprofit organizations can provide, on a small scale, more suitable social services to consumers. Acknowledgement of the role of nonprofit organizations can be a rationale for government's policy to encourage nonprofit activities of private sector. Supporting nonprofit activity of private sector is to achieve the aim that government originally intends to attain within the economy, but fails to do.
On the other hand, thinking of the social and political relationship particularly in a democratic society, it is necessary to understand a governing triangle between the government, the economy and the civil sector. The interdependence as well as the continuously transforming relationships contributes to the development of a viable democratic society. When one of these sectors is too strong or weak, a society is likely to experience serious problems of social justice, authoritarianism, and political turmoil. The relationships between these three sectors can also explain the effects of social networks, social capital, trust and mutuality, and the participation of local citizens in the strengthening of democracy. Changing relationships among the three sectors in society, the concept of governance promotes joint partnership between public, profit, and nonprofit organizations in order to bring about more effectiveness in the implementation of public programs as well as to reflect diverse values of citizens and groups in the process of policymaking.
Recently, facing unprecedented economic and social crisis in Asia, government as well as society, to some extent, has become to realize importance of the role of nonprofit sector and organizations in national governance and social reforms. One positive development in recent years in East Asian countries is the evolution of the civil society as a credible political and social force. Civil society becomes an integral and indispensable part of local and national governance. The growth of civil society means the growth of participation of nonprofit organizations in local as well as in national governance.
From the comprehensive development perspective, participation does not refer simply to voting. Participatory processes must entail open dialogue and broadly active civic engagement. It is said that an absence of strict rule of law and a lack of transparency both weaken the economy and undermine participatory processes. Strengthening the "checks" on abuses of power encompasses at least the New challenges from inside are reform of domestic economic structure, fundamental changes in relationship between business and government, pressures for expansion and consolidation of democracy, and power of civil society.
