The Compact (an agreement between the UK government and the English voluntary and community sector) is five years old this year. First proposed by the Review into the Future of the Voluntary Sector established by the National Council of Voluntary Organisations (NCVO) and chaired by Professor Nick Deakin, the Compact proposal was taken up by the Labour party and negotiated when it came into office. Among benefits it has produced are a number of detailed Codes on funding, consultation and advocacy, relations with black and ethnic organisations and, most recently, with small community organisations. As well, a mechanism for reviewing complaints by government or the voluntary sector about behaviour that is not "Compact compliant" has been established. Another part of the Compact committed the government to its annual review.

After an initial burst of enthusiasm the Compact seemed to drift for a year or two, but has recovered, and is now spreading its influence to local government and to what Australians would call statutory authorities. Seven ministers along with a number of senior public servants attended the most recent review. All government departments have now appointed senior official as "Compact champion" and attention has turned to ensuring all local authorities develop their own compacts with the voluntary sector in their area.

Prior to that review the government and the voluntary sector had conducted their own reviews of the Compact. David Carrington, the former head of the Baring Foundation, and more recently, the Public Policy Institute, conducted the voluntary sector's review - Report on the Challenge of Implementation (Carrington report). For the government, the Treasury organised the Cost Cutting Review (referred to in the October 2002 edition of the newsletter) Cross Cutting Review - Sept 2002. Both criticised the failure of many government departments to inform and commit themselves to the Compact and each made recommendations to rectify this.

The renewal of the Compact impetus in England has also revived the process in Scotland and Wales, where there are separate Compacts with the relevant UK government ministers and the Assemblies in those two regions.

The best evidence of the impact of the Compact is the large number of reports emanating from the British government, proposing innovative ways to regenerate the social economy and give it a central role in the provision of public services and the growth of an inclusive society. Nonetheless, there is still evidence of ignorance of the Compact in parts of the government and several government enquiries into the sector do not comply with Compact mandated requirements for sector consultation. The process of building a strong recognition of the social economy (its dimensions, its potential and its weaknesses), within a government involves a long process of institution building. It is a process that the UK government and the English social economy under the leadership of the NCVO, has progressed a long way. It is a process that has not begun here. www.ncvo-vol.org.uk/compactadvocacy )for information.