Why the Third Sector in Japan did not Succeed: A Critical View on Third Sectors as Service Providers

Abstract

Third sector projects were promoted by the Japanese central government as a perfect remedy for poor government performance. However, the third sector was not a savior of the situation; rather, it generated significant deficit. In this research, I redefine the concept of the third sector in Japan, which is different from that in the United States and England. I analyze the third sector corporations as service providers using profit-maximization theory and quasi-market theory. Also, I interpret the roles and activities of the third sector with the model of triangles and discuss the relation between the government and third sector firms, problems, and various implications to draw lessons from the Japanese third sector experience.

Keywords:

• budgeting
• Japan
• public funding
• quasi-market
• third sector