Need public policy ignore the third sector? Government policy in Australia and the United Kingdom

The policy of Australian governments, both Commonwealth, state and territory, toward those organisations that comprise a third sector of the organised economy is patchy and piecemeal. Absent is any recognition that they constitute a distinct sector; absent too is any recognition of their contribution to economy, society and politics. Such a situation is not inevitable. After identifying some of the gaps and contradictions in Australian policy toward the third sector, this article outlines the many policy initiatives to encourage the third sector or social economy (in European Union terms) taken by the Blair government in the United Kingdom. Given that there is a good deal of policy borrowing between Australia and the United Kingdom, the stark contrast between the two countries in this policy field is puzzling. This article concludes by identifying four developments that led to this policy explosion in the United Kingdom and finds them largely missing in Australia. This leads to a conclusion that a similar range of policies are unlikely to develop here.