| Summary: | This paper discusses nonprofit organizations as providers of public goods in the context of market failure theory. The paper defines common terms, elaborates on existing theory regarding non-profits and the market, and ties the argument to the current conversation in Public Administration. The author’s argument is that the establishment of non-profit organizations as community solutions to fill the void of market failure is congruent with the communitarian and implicitly Anti Federalist perspective in the Public Administration discourse. Due to urbanization and urban migration related problems, Turkey is facing market failures in the provision of public goods similar to those of the progressive era in the US. As government falls short of providing necessary services, third sector organizations step up to the task. Currently Turkey’s third sector is rather loosely structured and needs to be developed to be able to compensate for the shortcomings of the private and public sectors provision of these goods.
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