Abstract
The relationship between the governmerit and non‐government organisations (NGO's) providing welfare and human services has been dealt with extensively by researchers and scholars, from theoretical as well as empirical perspectives. Such research has addressed the changing role of the government and changing division of labour between the government and provider organisations, In this context, studies have discussed the strengths, weaknesses and level of effectiveness of the existing relationship, in which the government sets policies, provides funding and controls the quality of services while provider organisations actually deliver the services. Studies have also pointed to the organisational, managerial and economic differences between government agencies, non‐profit organisations (NPOs) and for‐profit organisations (FPOs). The findings indicate that neither sector has a clear‐cut advantage over the other. Rather, each sector has relative advantages in different areas of service provision.
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