Forging Change – Public-Private Partnerships

Go Lean Commentary

There is the Public … and there is Private Enterprise …

… sometimes these different entities, with different objectives actually have to work together.

Forging Change assumes there is a Status Quo that we will have to Change From in a quest to reach a goal or a destination. There is no doubt – if finances are not a hindrance – that it is easier to create something from nothing (scratch) – there is no demolition, discarding or displacing of the Status Quo. Alternatively, if the Status Quo must be replaced, then a “Fast Wipe” would be preferred, think of the reality after a bombing, tornado or hurricane.

These following expressions describe this truism in Forging Change, conveying  that it is easier to build up from nothing than to work with an existing structure (public or private) and then have to rebuild.

  • Burn, Build, Repeat
  • Will Build to Suit
  • “Genesis is life from lifelessness … destroy the existing in favor of its new matrix” – see this Movie Quote in the Appendix VIDEO.

Rebuilding – keeping the old – is perilous – See Appendix A below on the need for the strategy of Self-Governing Entities.

Creating something new from nothing would be so much better …

… but what if we cannot? What if we must engage the current infrastructure (buildings), people and processes? Then we must find a way to meld or blend the Old with the New, to merge the actuality of existing infrastructure with the need for the new development. How do we Forge Change in this reality?

One solution: Public-Private Partnerships (PPP).

What? How? Why? See this encyclopedic details here:

Reference: Public–private partnership
A public–private partnership (PPP, 3P, or P3) is a cooperative arrangement between two or more public and private sectors, typically of a long-term nature.[1][2] It involves an arrangement between a unit of government and a business that brings better services or improves the city’s capacity to operate effectively.[3] Public–private partnerships are primarily used for infrastructure provision, such as the building and equipping of schools, hospitals, transport systems, and water and sewerage systems.[4] PPPs have been highly controversial as funding tools, largely over concerns that public return on investment is lower than returns for the private funder. PPPs are closely related to concepts such as privatization and the contracting out of government services.[1][5] The lack of a shared understanding of what a PPP is makes the process of evaluating whether PPPs have been successful complex.[6] Evidence of PPP performance in terms of value for money and efficiency, for example, is mixed and often unavailable.[7] Common themes of PPPs are the sharing of risk and the development of innovation.[6] …
Origins
Governments have used such a mix of public and private endeavors throughout history.[12][13] Muhammad Ali of Egypt utilized “concessions” in the early 1800s to obtain public works for minimal cost while the concessionaires’ companies made most of the profits from projects such as railroads and dams.[14] Much of the early infrastructure of the United States was built by what can be considered public-private partnerships. This includes an early steamboat line between New York and New Jersey in 1808; many of the railroads, including the nation’s first railroad, chartered in New Jersey in 1815; and most of the modern electric grid. In Newfoundland, Robert Gillespie Reid contracted to operate the railways for fifty years from 1898, though originally they were to become his property at the end of the period. However, the late 20th and early 21st century saw a clear trend toward governments across the globe making greater use of various PPP arrangements.[2] This trend seems to have reversed since the global financial crisis of 2008.[6] …

Economic theory
In economic theory, public–private partnerships have been studied through the lens of contract theory. The first theoretical study on PPPs was conducted by Oliver Hart.[17] From an economic theory perspective, what distinguishes a PPP from traditional public procurement of infrastructure services is that in the case of PPPs, the building and operating stages are bundled. Hence, the private firm has strong incentives in the building stage to make investments with regard to the operating stage. These investments can be desirable but may also be undesirable (e.g., when the investments not only reduce operating costs but also reduce service quality). Hence, there is a trade-off, and it depends on the particular situation whether a PPP or traditional procurement is preferable. Hart’s model has been extended in several directions. For instance, authors have studied various externalities between the building and operating stages,[18] insurance when firms are risk-averse,[19] and implications of PPPs for incentives to innovate and gather information.[20][21]

Clarence N. Stone frames public–private partnerships as “governing coalitions”. In Regime Politics Governing Atlanta 1946–1988, he specifically analyzes the “crosscurrents in coalition mobilization”. Government coalitions are revealed as susceptible to a number of problems, primarily corruption and conflicts of interest. This slippery slope is generally created by a lack of sufficient oversight.[22] Corruption and conflicts of interest, in this case, lead to costs of opportunism; other costs related to P3s are production and bargaining costs.[23] …

Profit sharing
Some public–private partnerships, when the development of new technologies is involved, include profit-sharing agreements. This generally involves splitting revenues between the inventor and the public once a technology is commercialized. Profit-sharing agreements may stand over a fixed period of time or in perpetuity.[34] …


Source: Retrieved January 31, 2020 from: https://en.wikipedia.org/wiki/Public%E2%80%93private_partnership

So a PPP is a formal cooperative, just between public (government) entities and for-profit enterprises. These have proven effective in Forging Change among societal engines: economic, security and governance. Cooperative is the key word. (Consider the example of successful PPP deployments in India).

This commentary is the continuation of this January 2020 series from the movement behind the 2013 book Go Lean … Caribbean on the Art and Science of Forging Change in society. This entry is 3 of 4 for this series, promoting the Art and Science of Public-Private Partnerships. This is presented as an excellent strategy for melding the old infrastructure (government) with the new innovators (cutting-edge private enterprises) to make progress in Caribbean communities. We cannot ignore this obvious solution. Other Forging Change considerations are presented in this series; see the full series catalog here:

  1. Forging Change – By Building Momentum
  2. Forging Change – Opposition Research: Special Interest
  3. Forging Change – Public-Private Partnerships (PPP)
  4. Forging Change – Labor Movement Cautionary Tale – Backlash: Going too far

This is all about Forging Change. As related, this is not an easy assignment; it is both an Art and Science. But, the Art and Science gives insights on “how” the stewards of a new Caribbean can move the Old (people, process, establishments and institutions) to succeed in reaching New goals and accomplishments for their constituents and clients.

This thought of Forging Change has been a common theme for the movement behind the book Go Lean…Caribbean for more than 5 years. Before this 4-part series (this January 2020), there were 13 previous blog-commentaries that detailed approaches for forging change; see the full catalog here (in reverse chronological order):

  1. Forging Change – ‘That’s What Friends Are For’ (July 9, 2019)
  2. Forging Change – Corporate Vigilantism (March 29, 2018)
  3. Forging Change – Soft Power (February 21, 2018)
  4. Forging Change – Collective Bargaining (April 27, 2017)
  5. Forging Change – Addicted to Home (April 14, 2017)
  6. Forging Change – Arts & Artists (December 1, 2016)
  7. Forging Change – Panem et Circenses (November 15, 2016)
  8. Forging Change – Herd Mentality (October 11, 2016)
  9. Forging Change – ‘Something To Lose’ (November 18, 2015)
  10. Forging Change – ‘Food’ for Thought (April 29, 2015)
  11. Forging Change – Music Moves People (December 30, 2014)
  12. Forging Change – The Sales Process (December 22, 2014)
  13. Forging Change – The Fun Theory (September 9, 2014)

Forging Change is not easy; some strategies work in some communities, while they may not work in others. So we must “push all the buttons”. We must do anything and everything to get Caribbean stakeholders to accept the changes that must be forged in our region. Public-Private Partnerships are just another expression of the formal cooperative movement.

The cooperative (co-op) movement began in Europe in the 19th century, primarily in Britain and France, in response to the industrial revolution and increased mechanization threatening the livelihoods of so many tradesmen. In 1844, the Rochdale Society was formed as a cooperative for textile workers to open their own store selling food items they could not otherwise afford. They designed the now famous Rochdale Principles, the basis on which co-operatives around the world operate to this day. – Source: Book Go Lean Page 176 quoting from the “International Co-operative Alliance”.

Cooperatives are not unfamiliar to the Go Lean roadmap; in fact the within the 370 pages of the Go Lean book, many details are provided on how to reform and transform the economic, security and governing engines for the Caribbean region using formal cooperatives. The book features the new community ethos (attitudes and values) that must be adopted; plus the executions of new strategies, tactics, implementations and advocacies to succeed in getting different entities – in this case Public ones and Private ones – to work together to elevate the Caribbean homeland. In fact, this actual advocacy on Page 176, in the Go Lean book, contains specific plans, excerpts and headlines; it is hereby entitled:

10 Ways to Foster Cooperatives

1 Lean-in for the Caribbean Single Market initiative: Caribbean Union Trade Federation (CU).
The CU in effect represents a cooperative with the unification of the region into a Single Market of 42 million people across 30 member-states with a GDP of $800 Billion (2010 figures). Following the Rochdale principles, the CU will structure other cooperative endeavors to marshal the economic and homeland security interest of the region.
2 Consumer Cooperatives
3 Worker Cooperatives
4 Purchasing Cooperatives
5 Cooperative Banking

The Caribbean Central Bank (CCB) is a cooperative among the region’s Central Banks. The CCB will be the sole controlling agent of the monetary policies for the Caribbean Dollar and aggregate currency printing and coin pressing.

6 Housing Cooperatives
7 Agricultural Cooperatives.
8 Utility Cooperatives
9 Mutual Education
10 Mutual Insurance and Risk Management

This advocacy projects that there is hope that the Caribbean region can foster the needed Public-Private Partnerships to foster societal progress. Government are not known for innovative solutions – think Silicon Valley – but governments do bring access to markets (constituents) and capital (monopolies and taxes/fees on infrastructure utilization).

We urge all Caribbean stakeholders to lean-in to this Go Lean roadmap … to allow us to work with partners, both domestic and internationally. This is one more way to Forge Change and make our Caribbean a better place to live, work and play. 🙂

About the Book
The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), for the elevation of Caribbean society – for all member-states. This CU/Go Lean roadmap has these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to ensure public safety and protect the resultant economic engines.
  • Improve Caribbean governance to support these engines, including a separation-of-powers between the member-states and CU federal agencies.

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform the societal engines of Caribbean society.

Download the free e-Book of Go Lean … Caribbean – now!

Who We Are
The movement behind the Go Lean book – a non-partisan, apolitical, religiously-neutral Community Development Foundation chartered for the purpose of empowering and re-booting economic engines – stresses that reforming and transforming the Caribbean societal engines must be a regional pursuit. This was an early motivation for the roadmap, as pronounced in the opening Declaration of Interdependence (Pages 12 – 13):

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xvi. Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes … can imperil the functioning of the wheels of commerce for all the citizenry, the ccidence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

xxiv.  Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

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Appendix A – Self Governing Entities – Building from Scratch

The dread of rebuilding is that the first effort must go towards clearing away the Old Space, before effort can be applied to the New Space. This is true for Public entities (buildings, Common Pool Resources, etc.) or for Private entities (corporations, families, and individuals). Remember this Old Wives Tale: “A stitch in time saves Nine”. This is true for Public/Private enterprises and for human development too:

The book Go Lean … Caribbean, presents a plan, as a roadmap, to reform and transform the 30 member-states of the Caribbean region. There is a lot of focus on building from scratch. In fact, the book introduces a novel concept of Self-Governing Entities (SGE), a strategy for facilitating the construction – building from scratch – and administration of independent landmasses specifically as economic engines. These SGE’s are necessary features of the Go Lean roadmap, allowing for industrial parks, technology labs, medical campuses, agricultural ventures, Research & Development facilities and other expressions. Remember these SGE models that previously been detailed:

http://www.goleancaribbean.com/blog/?p=13138 Industrial Reboot – Prisons 101
http://www.goleancaribbean.com/blog/?p=12146 Commerce of the Seas – Shipbuilding Model of Ingalls
http://www.goleancaribbean.com/blog/?p=2750 Disney World – Role Model for Self-Governing Entities
http://www.goleancaribbean.com/blog/?p=2003 Ship-breaking under SGE Structure
http://www.goleancaribbean.com/blog/?p=1214 Fairgrounds as SGE and Landlords for Sports Leagues
http://www.goleancaribbean.com/blog/?p=286 Puerto Rico’s Comprehensive Cancer Center Project – Medical SGE?

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Appendix B VIDEO – Star Trek II (1982) – Genesis Explained – https://youtu.be/GnziufszqSE

Admiral Titan Entertainment

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