Abstract
Continuing poverty, deprivation and unemployment in rich English-speaking countries have led governments to reconsider existing methods of delivering social services. In Australia, the Minister for Employment Services, Tony Abbott, has developed a doctrine of 'constructive compassion' to justify human service delivery through private firms and voluntary organisations. The McClure Report has also argued for 'social partnerships' involving governments, the business community and the voluntary sector. The limited purpose of this research note is to evaluate these arguments using the conceptual tools of market failure, government failure and voluntary failure and drawing on some of the theoretical literature on the voluntary sector, especially Billis and Glennerster (1998). We contend that considerable scope does indeed exist for social service delivery by voluntary organisations, subject to at least one important caveat.
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