Hybrid governments

Government today is hybrid in form. It carries out both the classic policy tasks and those of investor and market parties. The role of and set of instruments available to the government are increasingly public-private hybrids. Solving social problems is done through vehicles or collaborations that bring public and private together. The public and private domains are therefore moving towards each other because the government is increasingly dependent on public-private partnerships or combinations to adequately address social changes. The hybrid government comes with new challenges because it necessarily brings together legal, organisational, financial and tax issues. Above all, however, it also offers opportunities to allow public and private values to grow closer together.

What is a hybrid government?

A hybrid government is a part of the government that, in addition to the traditional government role, also manifests itself as a market or private party. The hybrid government can be described as a government that, depending on the situation, assumes multiple guises within the spectrum ranging from night watchman state to active industrial policy. Whereas in recent decades the government often assumed a facilitating role to encourage market forces, a development is now visible in which the government (out of necessity) exerts a greater direct influence on market forces, whether in collaboration with the private sector or otherwise. Complex social issues require appropriate management and direction, but existing organisation and governance structures are far from suitable for this task. That is why cooperation is required from various parties (governments, companies, social organisations and individual citizens).

What developments do we see?

The balance that the government seeks in performing its tasks is shifting. This change in the role of government is due to several developments in society. Examples include the emergence of new challenges as a result of globalisation, the energy transition, a pandemic or social issues that require government intervention.

How can we help you?

Designing and establishing a public-private partnership structure for the implementation of a Regional Deal, from a legal, financial and organisational perspective.
Advising public funds, shareholder structures or investment companies
Advising on the establishment and organisation of Regional Development Companies, public funds and other public investment vehicles.
Drafting policy, investment or assessment documentation for public funds and investment companies.
Advising on public shareholding, in participations of (local) governments and the appropriate structure, governance and finances.