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In Denmark, for example, the free market, has historically involved a
partnership between government and business. If shared societal goals (free
universal education, national health care, jobs, strong social services, and high
standard of living) are to be achieved, then business and government must
work together toward common economic goals. The “partnership” between
government is not always smooth or cooperative, but it remains dedicated to
the shared values for the common good.
Government is deeply involved in many industries in more than a regu-
latory role. For example, government provides over $16 billion annually to the
US Department of Energy and its over dozen “national” laboratories. Two of
these scientific laboratories receive over $1 billion annually in research funds:
Los Alamos National Laboratory in New Mexico and Lawrence Livermore
National Laboratory in California. Both of these laboratories as well as
Lawrence Berkeley National Laboratory are operated by the University of
California System, which receives over $25 million annually as a management
fee. The amount of research funds flowing through these and other laboratories
clearly influences both public policy and business strategies in the United
States and worldwide.
In passed 2017 national energy bill included assistance for coal and nuclear
power as well as expanded incentives for oil and gas, as well as most parts of
the electricity industry. The electronics industry credits high-price defense
contracts with giving them the capacity to develop and market early transistors
and integrated circuits when there would have been no private markets for
these products given their costs. In addition, the US agricultural incentives
have become hotly contested by Europe and Asian countries claiming unfair
competition in trade. Also, the Bush administration’s favoring of government
support for industry is seen in the prescription drug bill recently passed. In
short, the myth of industry operating without government support and control
is hopelessly inadequate.
The local and regional level is also a critical resource for publiceprivate
partnerships. The role of local governments is often forgotten, but together
they have extensive planning and program activities because their residents
and constituencies need and want it. Thus local-level governmental entities,
such as government and counties, are one focal point for renewable energy
generation and hence noncentral grid energy systems. In 2000, the voters of
California passed Initiative #38, which allowed local governments or districts
to use finance measures such as bond measures.
One of the most successful has been the Community College Districts, the
largest college system in the world with 1.3 million students on 108 campuses.
By the spring of 2002, six districts followed the lead of the Los Angeles
Community College District (LACCD) and its Board of Directors who passed
a bond for $1.3 billion. At least half of the bond measure funds are being used
for “sustainable” (green) buildings in LACCD under international green