Non-governmental organizations and their role in the contemporary economy

Abstract

Although non-governmental organizations are long rooted in our reality, however, they can be considered, at first glance, to be an atypical phenomenon of the market economy, where everything is measured in terms of effort and effect, or the ultimate goal of NGOs it is neither maximizing profit nor obtaining it. NGOs often have social objectives, being aimed at solving social problems at the national or community level. However, we can identify an important economic role of NGOs, which in our opinion, demonstrates once again the great self-regulating force of the market mechanism and its ability to remove its own shortcomings. It is about the contribution of these categories of organizations to solving market failures or, more precisely, to supporting the state in its activity of solving market failures.