Public Policies and State and Market Failures Social Economy in the Context of Partnership with Civil Society Organizations

The State as the Entity that represents the first sector of the economy, has the aim of being the provider and articulator of public policies so that the Market, as the second sector, produces utilities, generates employment and income, which are the bases for supporting economic and social policies. Failure to fulfill this mission produces losses, known as State failures, due to the lack of clarity and inclusive public policies. The market, dependent on economic policies, produces inefficiency, known as market failures. The article discusses the context of State and Market failures and partnerships with Civil Society Organizations from the perspective that partnerships can be one of the instruments to mitigate the consequences of the aforementioned failures, and aims to propose a quantitative-qualitative theoretical model to evaluate the contribution of the third sector in building the social economy, as well as evaluating the performance and sustainability of partnership projects, in the context of State and Market failures. Using academic data from the research group “Third Sector Research and Extension Laboratory - TSREL”, the model was tested and the results obtained suggest that the methodology is consistent in signaling that the project performance is efficient, effective and the partnership is sustainable, getting a robust contribution to the construction of the social economy, assisting regulators and public policy managers in monitoring the performance and sustainability of social policies.