Introduction
Weisbrod’s approach is an economic theory that explains the role of non-profit organizations in filling gaps left by the government and private sectors. Developed by economist Burton Weisbrod, the theory is widely used to understand why voluntary and non-profit organizations exist and thrive in society.
Key Points of Weisbrod’s Theory
- Public Goods Gap: Government may not provide all services due to limited resources or political reasons. Non-profits step in to serve unmet needs.
- Diversity of Demand: People have different needs. One-size-fits-all public services may not satisfy all. Non-profits offer specialized services.
- Trust and Mission: Non-profits are more trusted because they are not profit-driven. They focus on mission-based services like education, health, and welfare.
Conclusion
Weisbrod’s approach helps explain why voluntary organizations are essential. They provide services tailored to community needs, especially in areas underserved by the government or market.