Public-Private Partnerships

No matter how chaotic they may seem, everything about a city grows out of the eternal need to solve problems. In fact, cities are nothing more than solutions to problems, that in turn creates more problems that need more solutions. This problem-creating frenzy must be managed efficiently. Improving performance and meeting citizen expectations requires innovation. And that challenge will mean bridging political, economic and cultural differences. Cities can't afford to be complacent. They must innovate to operate.

Innovative government is an oxymoron. Companies innovate; city governments enforce rules and regulations. Few cities take a systemic view of innovation. They have a hard time defending new ideas especially in the face of multiple stakeholders with the power to shoot them down. Even the ones doing some of the most creative work in government haven't created an innovation culture. Call it what you will - political dysfunction, a challenging fiscal environment, project complexity - in spite of the difficulty, leaders across the country are exploring new ways to finance investments and operations. When New York City Mayor Michael Bloomberg wanted to transform the city’s under performing public school system, he used public-private partnerships to launch innovative pilot programs.

Public-private partnerships are technically and financially complex with lots of room for miscommunication but they make sense. The private sector has ideas and experience to offer. There is real opportunity in risk sharing: shared-value for the taxpayer.