A Weakening of New Public Management: Will that Increase the Space for Scandinavian Voluntary Sector Service Provision?

The voluntary sector played a very important role in establishing the welfare state in the Scandinavian countries and for a long time it even played an important role also for large-scale tasks connected to the welfare state’s provision of services. What we see now, however, is comprehensive change, putting pressure on the Norwegian (and Nordic) regime model and thereby Scandinavian exceptionalism. This Paper looks into changes in the relationship between the state and the voluntary sector, while at the same time considering the implications that the increased role given to the market sector within health and human services has for the relationships between sectors. In the discussion, we distinguish between voluntary work and activities going on mainly at the local level in more traditional voluntary organizations emphasizing volunteering and social integration (small-scale) and the more institutionalized voluntary-based service production in the health and welfare sectors (large-scale). The overall changes we see, is that the market has strengthened its position on behalf of the voluntary sector if we look at large-scale institutional service delivery, while the small-scale voluntary sector is as vibrant and extensive as ever before. While the small-scale type has been increasing for a long period, with its main emphasis on the individual and on individual participation in leisure and cultural activities, the welfare service-based large-scale type has become increasingly marginalized both institutionally and ideologically, despite its continued importance in certain fields. We are witnessing a significant ideological and institutional change, with the market sector increasingly making itself relevant in virtually every area of society. It is a rich and strong state that gives space to the new market forces within social services and welfare. The state is still paying the bill and defining the space open without so far being afraid of losing its control and not being that interested in whether it is the market sector or the voluntary sector delivering the services. Why is the institution-based voluntary sector (large-scale) so weak, the emphasis on small-scale culture and leisure so strong, and the legitimacy of market-based solutions increasing so fast? How can it be that market solutions have rapidly gained entry in Norway (and even more so in Sweden) to such a great extent and in areas where it would have been unthinkable not so long ago? Why is it that this important part of any voluntary sector seems so weak institutionally and not the least ideologically? What was it that enabled this type of ideological and institutional change to happen so quickly and to become so deeply rooted in social-democratic countries like Norway and the other Scandinavian countries?