An Explosion of Good Will

From David Bornstein's How to Change the World: "In the United States and Canada, for example, almost everyone has heard about the explosion of dot-coms--a much smaller phenomenon--but millions have still not heard the big story: the worldwide explosion of dot-orgs" (6). The book begins with an account of how the number of NGOs and nonprofits has ballooned over the last couple decades. Readers, I presume, are supposed to applaud what is taken as a proxy for an explosion of good will.

My training in economics has me asking a number of questions:

1) What is driving growth in what Bornstein calls "the citizen sector?" My economic intuition tells me it is something other than good will.

2) NGOs and nonprofits form to address social goods that are neglected by both private and public sectors. Why are these social goods being neglected? Government exists for the provision of public goods, or when possible, to enforce legislation (taxes and property rights) that helps internalize externalities. What role does that leave for the citizen sector?

3) From what are resources being diverted to fund newly formed NGOs and nonprofits? Does this represent an efficient allocation of resources?

4) If there is a loss in efficiency, can we count growth in the citizen sector as a boon to society? How might we begin to answer this question?

5) How do market forces and competition operate in the citizen sector?

The book doesn't answer many or any of these questions. Nonetheless, I found it a worthwhile read for its stories of ground-level, piecemeal change throughout the world. The Ashoka Foundation sounds fascinating and definitely seems to be onto something.

No doubt there is abundant literature to answer some of the questions that I have posed. Now if only I could find some of what is out there...