More than just profit

Why Ageas believes in Public-Private collaboration

For years, public-private collaboration was primarily used to keep big government investments outside of the budget. In a Whitepaper recently published by Ageas and VBO, both organisations point out that public-private sustainable partnerships can provide an answer to the complex challenges our society is facing, and that all parties concerned can benefit from them.

Here are 4 reasons why Ageas believes in public-private sustainable partnerships:

1. It is an extremely suitable model for complex challenges

Climate change, mobility and energy issues, resource scarcity and the increasing pressure on welfare and health have raised questions like ??how will we organise our cities in a future-proof way??? or ??how can we protect our prosperity????The societal nature of these questions, as well as their complexity, requires collaboration between private and public partners. This is especially true in Belgium, where government-led investments have lagged behind.

2. Sustainability becomes a critical driver?

Public-private partnerships arise out of societal necessity. Collaborations are set up to benefit the lives of the people, which mean that they can be objectively measured by predefined sustainability criteria. In this regard, Luc Van Liedekerke proposes involving an independent and academical third party to measure the project early on.

It must be noted however, that society and technology evolve rapidly, especially in comparison with long-term private-public arrangements. There will always be a newer and better way to make a project more sustainable. Researcher Kristien Doumen (UA) says that a flexible approach is needed, and objectifying sustainability criteria is a long-term process.?

3. From “me” to “us”: moving from contractual obligation to cross-interest engagement

Companies and governments can make a difference in building a sustainable society, as long as collaboration surpasses purely economic interests and political motives, and is built on a joint commitment to positively impact society. Mutual trust and respect are essential. Contracts can be useful when certain processes are in doubt, but partners essentially need to work in constant dialogue. Apart from the initial phase, the best contract is one that remains in the desk drawer for 20 years, says Luc Liedekerke.

4. Complementarity as a driving force?

There is a fundamental ideological tension between public and private sectors. The legitimacy of the government depends on political cycles, whereas private companies depend on their owners and shareholders. In the ideal public-private partnership, the government builds on the intellectual and innovating capacities of the private company, which in turn brings in financial benefit, as well as a true commitment to shaping the future of our cities, infrastructure, or health care.?

Hans De Cuyper, CEO Ageas: “It’s only when collaborations are set up with the right mindset and a sense of mutual commitment that great outcomes can be achieved. Private businesses are more than willing to partake in such collaborations. Policy makers are also becoming increasingly aware of the benefits of public-private partnership. So why wait? Let’s just make this work!”

?? Link to the white paper: More that just profit