Reflections on the market, networking and trust

Abstract

The objective of this reflection is to provide an economic perspective of the why and how of the different forms of governance, management and production of certain public services. From the theoretical approach of why the supposition is made that the terms of co-governance, co-management and co-production are associated with the concepts of a division of labor, specialization, networking and collaboration among different players pursuing different goals. The theory of networks and the concept of trust are necessary to explain the how. For an organization taking part in the network, it means that its network partners and other organizations value the organization positively and think that it does things properly. The expected objective of this cooperation is a better adaptation to the preferences of different groups at any given moment.

Key words:

• Trust
• market
• networking
• third sector
• co-production
• voluntary community organizations

Notes

1 We are using an evolutionary approach, where demands and offers evolve constantly.

2 The means can be goods, services or information. The money exchange is one type of exchange. The payment of taxes in exchange for receiving public services is another kind of exchange. In this reflection the market will be identified with a larger concept of exchange.

3 Belgium, Bulgaria, France, Germany, Italy, Spain, Sweden, the UK. The national TSFEPS reports are available on the EMES site: www.emes.net.

4 Germany, Belgium, Denmark, Spain, Finland, France, Ireland, Italy, Portugal, Sweden and the UK. An outcome of this research work is found in Nyssen (2006).