Post 8 in the Guest Blog Series Preserving Public Values in The Automated State by Jessica Breaugh and Gerhard Hammerschmid.

Public-Private Partnerships (PPPs) have emerged as a prominent strategy for governments to deliver public services and infrastructure, particularly in the realm of digitalization. By combining the resources and expertise of both public and private sectors, PPPs aim to enhance efficiency, innovation, and service delivery. However, while digitalisation can of course strengthen public values, these partnerships also may raise concerns about the potential erosion of public values, to which public sector organisations have the role and duty to protect ( Jørgensen & Bozeman, 2007 ). In the digital age, PPPs can leverage technologies to improve efficiency, transparency, and
accountability for public services, while at the same time create public value ( Twizeyimana & Andersson, 2019 ). For example, blockchain technology can be used to create transparent and secure records of transactions, reducing the risk of corruption and fraud. Artificial intelligence can be used to optimize resource allocation and improve decision-making. However, it's important to ensure that these technologies are used responsibly and ethically, with a focus on public interest – especially given the heavy reliance on private sector companies to achieve these goals ( Tsap et al., 2020 ).
A Double-Edged Sword
PPPs can accelerate the development of critical infrastructure and services, leveraging the private sector’s efficiency and innovation and fill critical skills gaps in the public sector (Ma et al., 2023; Zheng & Manoharan, 2020). They can also attract private investment, stimulate economic growth, and create jobs. For instance, PPPs have been instrumental in the development of telecommunications infrastructure, particularly in emerging economies (Fife & Hosman, 2007). By partnering with private sector companies effectively, governments can expedite the rollout of broadband networks, improving connectivity and digital access for millions of people (Oh et al.,
2023).
On the other hand, PPPs can lead to a loss of public control, increased costs, and reduced transparency. There’s always the risk that private interests may overshadow public good, especially when it comes to essential services like healthcare, education, and transportation, especially if the goals of private sector partners are not aligned with the public, and if technology use become too
deterministic (Ivancheva et al., 2020; Nutsa Kobakhidze, 2023). In other cases, a lack of public participation can lead to products and services becoming out of touch with users ( Choroszewicz & Alastalo, 2023 ) , leading to a higher level of digital administrative burdens, or even lack of use.

Striking the Right Balance
To ensure that PPPs deliver on their promise, it's crucial to strike a balance between public and private interests. This involves careful planning, transparent decision-making, and strong oversight mechanisms. These include clear objectives, including goals for PPPs that align with stakeholder interests, while focusing on delivering public values rather than maximizing private gains ( Casprini & Palumbo, 2022 ), this may also mean that a balance between interests of PPP actors much be struck (Savenije & Beunen, 2012 ). Robust governance structures are also critical to ensure accountability, transparency and fairness. These can be created through clear rules and regulations, access to independent oversight bodies and dispute resolution mechanisms when problems inadvertently emerge and hold project partners accountable ( Blomqvist & Winblad, 2022 ). Performance monitoring implementing robust monitoring systems to track progress both on in terms of digital services provided, but also, on public values that can be enhanced or depleted in the process. These indicators can for example, be based on the specific public values such as the projects efficiency, effectiveness, inclusivity and impact. Finally, PPPs that include Public Participation ensure greater input regarding the needs and concerns of the public, throughout the course of the PPP development and implementation us essential (Boyer, 2019).
PPPs in digitalization have the potential to transform public services by combining private sector innovation with public sector values, ensuring greater efficiency, transparency, and accountability. They also offer a means to which public values and digitalisation, which is often heavily dependent on private sector actors, can be accomplished in a way that protects public values. However, without robust governance and public participation, these partnerships risk prioritizing private interests over public good. By carefully considering these potential pressure points, policymakers and practitioners can harness the potential of PPPs to deliver innovative and sustainable solutions while also safeguard public values in the process. This research enhances the work of DigitPublicValues, by highlighting both the potential benefits and pressure points that emerge from digitizing government. To this end, balancing these risks across PPPs will be key to ensuring that public values remain at the heart of process, design and implementation of digitalisation projects within the public sector.

Bios

Jessica Breaugh is a Lecturer in Management at ESCP Business School and a Fellow at the Centre for Digital Governance (Hertie School)

Jessica Breaugh

Gerhard Hammerschmid is Professor of Public Management at the Centre for Digital Governance (Hertie School)

Hammerschmid