Digital Government: Balancing Risk and Reward through Public/Private Partnerships

Abstract

The modern focus on the application of business principles to the running of government is unique due to an escalated emphasis on divesting the public sector of as many service provision responsibilities as possible. This divestiture is being accomplished through an array of arrangements alternatively described as privatization, contracting out, outsourcing and public/private partnerships. There are three fundamental challenges to this process: (1) defining those responsibilities which cannot and should not be turned over to the private sector, (2) ensuring that such arrangements balance both the risks and rewards between the parties involved, and (3) getting the best deal for the public. This chapter focuses on the second point: achieving a reasonable balance that should, if implemented successfully, result in that elusive “best deal.”