EuroSET - The THIRD SECTOR IN SLOVENIA - ABSTRACT

Authors: Simona Hvalič, Jože Ramovš, Ksenija Ramovš

The third sector is a frequently used term for a sector that exists alongside the state and the private profit-making sector. In Slovenia, we do not have a legal definition of the term non-profit-voluntary organisations (hereafter referred to as third sector organisations). This term can be found under various names such as third sector, non-profit, non-governmental, voluntary, humanitarian, charity and solidarity organisations, self-support organisations and others. All terms comprise the same complex of organisations, which are non-profit, non-governmental and autonomous.

On the basis of the existing legislation, it is possible to found the following kinds of third sector organisations: associations, funds, institutions, private institutes, housing and other co-operatives, religious communities. Because of the various legal statuses these organisations are not regulated by one but by several legal acts. Furthermore, profit and non-profit organisations as well as public and private organisations are united in one legal status, which makes it impossible to clearly distinguish between third sector organisations and organisations from other sectors only on the grounds of the legislation (Črnak-Meglič, Vojnovič, 1997:164).

Slovenian society has a long and extensive tradition of associating according to interests and self-organisation of people. The first third sector organisations, appeared in medieval towns in 13^th and 14^th Centuries. In that period craft-guilds emerged, religious charity organisations and funds. In the later period, primarily the Catholic Church played an important role in the development of charity and social activities. The most important turning point is the bourgeois revolution of 1848, which brought freedom of association as a classical constitutional right and legal norms which regulated the foundation of associations and other forms of association of people on the basis of common interests. At the end of the 19^th Century, the system of co-operative societies which began to develop, ramified into mass social movement and represented the defence mechanism of farmers, workers and craftsmen against the growing capitalism (Črnak-Meglič, Vojnovič, 1997:158). Political parties, which supported various kinds of organisations and the labour movement also played an important role. In the period leading to the war, the third sector encompassed an extensive network of associations, co-operatives, charity organisations, trade unions and professional organisations and unions. The end of the World War 2 and the arrival of the socialist social system broke up with the tradition of a strong and developed third sector. To a great extent, its functions were taken over by the public sector (Črnak-Meglič, 2000). In the year 1974 the foundation of the third sector organisations was again promoted and started. The rise in the number of third sector organisations was the most intense in the period between 1975 and 1985, and not in the 90's, after the change of the political system. After 1991, when Slovenia became independent and a multi-party democratic state, new social programme was adopted which had for its starting point the re-orientation of the welfare state into a corporativist type. This programme is being implemented gradually; the state has not reduced costs for social services nor the number of the employed in public services yet; the state has not begun to withdraw from the provision of public goods and services and therefore has not opened space for other sectors. None the less, the third sector and commercial production of goods and services grew in the 90’s.

According to ICNPO classification (International Classification of Non-profit Organisations), there were about 13,000 third sector organisations in Slovenia in the year 2000. They were mainly founded at the local level, and are of membership character. Third sector organisations have similar structure then the rest of the transitional countries of Central and Eastern Europe. The majority (59%) of all active associations are sports and recreational, culture-and-art and firemen's associations (Rončević, 2001). Funds, private institutes and religious organisations mainly work in the fields of education and culture (Črnak-Meglič, 2000:156).

Statistical data on the income of third sector organisations are incomplete, yet various sources show the financial weakness of Slovenian third sector organisations. The lack of finances results in the low employment rate and in managerial problems. The management of the third sector is constantly facing problems due to the incomplete legal solutions and their absolence, unfavourable tax law, expensive loans and chronic lack of financial means. Scarce public financial resources force numerous organisations to connect several functions and jobs in one person. Many organisations also rely on the work of volunteers that do not achieve the level of professionalism, which is the standard in profit-making organisations. Additional problem represents the reduced financing from EU.

Apart from public financial means, membership fee is the most important financial resource for third sector organisations. Important sources of income are also donations and commercial activity. The state or municipalities support the work of the third sector organisations primarily by annual subventions or financing of individual projects, and very rarely on the basis of long-term financial arrangements, such as concession contracts.

Numerous Slovenian third sector organisations have weak organisational structure, small number of members and few paid or employed members and experts (Freedom House, 1998 in: Rončević, 2001:32). The available data on associations shows that in 1996 associations employed 2930 persons, which represents 0.4% of all the employed in Slovenia. This low employment rate classifies Slovenia among the countries with the smallest number of the employed in the third sector.

A continuation of the pattern of relationships from the socialist period has been noted in the Slovenian system, with one important difference - a considerable reduction of state control over the work of third sector organisations (Črnak-Meglič, 2000:162). However, the great distance between the third sector and the state and their low rate of communication has remained. The role of the third sector is limited only to the filling in the gaps in the services of the public sector. Nevertheless, the differences in fields of action of individual organisations can be said to exist. Third sector organisations have very limited possibilities of representing their interests at the political level. The problem lies also in their diversity and unconnectedness. They are dispersed, both in sectors and in regions, and are frequently organised as private companies, competitive with one another, which results in poor orientation towards co-operation and openness for interactions (Hren, 2001:66). Status legislation enables different forms of connection and association of third sector organisations, however the problem remains at the level of contents where most of these organisations see no privilege in the association of interests and inclusion into co-operation networks. Modest public financial means cause merciless competition, egoism, self-sufficiency and hostility between third sector organisations. Third sector organisations are also very poorly represented in the global and European forums.

Slovenia has not as yet defined the aims of its third sector; aims and solutions which are being set and followed from case to case are mostly coincidental in their nature either due to pressures from within or from outside.

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