Public-private partnerships challenge the Left to think creatively

By: Ole Hendrickson

  The overall relationship between governments and corporations is seldom seen as a partnership. Yet the topic of public-private partnerships (PPPs) is getting a lot of attention. In October 2000, for example, the United Nations Development Programme (UNDP) sponsored a workshop in Germany on the role of PPPs in providing urban environmental services - water, energy, sewage treatment, and solid waste management. (www.undp.org/ppp)
  The prevailing view on the left is that PPPs mean privatization, deregulation, and downloading. But do public-private partnerships necessarily imply pro-corporate policies? Is it possible to build a PPP framework in which higher principles such as protection of health and the environment, and poverty alleviation prevail over financial considerations?
 

Californians and Albertans are paying more for energy after deregulation while in Pennsylvania - with a clearer public-private partnership - consumers generally pay less

  The UNDP workshop recommendations are worth considering in this context: "Public-private partnerships need an enabling institutional environment to ensure their viability. This includes clear policies; the rule of law; strong, transparent and independent financial and technical regulatory frameworks... Local governments have to recognise that public-private partnerships do not relieve them of responsibilities for the provision of quality services... it is also essential that they fully assume their new role as supervisor/regulator... User fees, even in developed countries, often do not cover the investment costs for modernising and extending service systems... Government subsidies should therefore especially target the capital investment costs for extending services to the underserved poor population."
  Many Canadians are concerned about globalization and excessive corporate influence. A world of trade rules, deregulation in other areas, and "growth at any cost" is not sustainable. Developing nations seem to be repeating our mistakes and creating a much less stable, diverse, and interesting world. These problems are rooted in the relationship between governments and corporations. The question is not if we should examine the government-corporate relationship, but how. If social democratic parties wish to engage in this debate, PPPs would provide a good starting point.
  Consider the way in which we hope governments will treat citizens. It entails basic notions of justice and respect for human values. This can be seen as a kind of public-private partnership. We individually take on certain responsibilities and agree to respect laws in exchange for access to public services.
  There is no reason that government's relationship with corporations should be different. Human values and justice should underpin this relationship, in that it ultimately rests on individual accountability.
  The case of power deregulation is instructive. California and Alberta are experiencing major energy price hikes, while Pennsylvania consumers are generally paying less after deregulation. On the surface this appears to reflect differing growth trends: economic and population growth are weak in Pennsylvania, strong in Alberta and California, hence demand is driving up prices. But there is far more to power deregulation than external market forces. The PPP concept is useful for discussing the responsibilities we expect energy corporations to assume, such as providing reliable information on power sources and waste generation. And the PPP concept also demands that we consider continuing roles for government: rules regarding rate changes must be clear and well-enforced, energy conservation and renewable energy should be promoted, and so forth.
  Power deregulation does not mean no role for government - it means that the role of government changes.
  By rejecting the concept of PPPs in the context of changing government-corporate relationships, the Left is missing a golden opportunity to stake a sizable claim on an issue that really matters.

Ole Hendrickson is an environmental scientist who works in Ottawa for Environment Canada. This article states only the author's personal views.

Posted: March 05, 2001

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