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Cambridge Journal of Economics Advance Access published online on October 12, 2007
Cambridge Journal of Economics, doi:10.1093/cje/bem027
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© The Author 2007. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

The Third Way and the third sector: New Labour's economic policy and the social economy

Helen Haugh and Michael Kitson*

* Judge Businees School, Cambridge

Address for correspondence: Judge Business School, Trumpington Street, Cambridge CB2 1AG, UK; emails: h.haugh{at}jbs.cam.ac.uk; m.kitson{at}jbs.cam.ac.uk

This paper reviews the relationship between Labour's economic policy and the third sector. Since 1997, the third sector has received significant government support and has gradually moved from the economic periphery towards the centre such that it is now instrumental in the delivery of a range of government policies. It operates alongside both the private and public sectors in delivering employment, education, health and social care, housing and environmental policies. The impact of this has been seen in measures of social exclusion, poverty, the environment, social capital, as well as GDP and employment. Future policies should strive to maintain and develop the distinctive capabilities of third sector organisations and the balance between economic, social and environmental objectives.

Key Words: Third sector • Social enterprise • New Labour

JEL classifications:: L30, L31, L39, I38

Manuscript received January 29, 2007; final version received July 9, 2007.


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