A great myth among the American populace is the myth of compartmentalization. We (or at least people who don’t study a specific area) tend to think that things are separate and distinct. The reality however, is that things are much more connected than we believe. I’m going to approach this idea from the standpoint of public policy, government, and the private sector, however we see this myth of compartmentalization in the way university departments are set up or in the way we want to have sports/entertainment separate from current political and social affairs. In the world of public policy, we like to think that there is government, and then there is business, and they are separate from each other.
This myth is slowly being dismantled in the United States at the level of local leadership in cities, businesses, and civic organizations. In The New Localism, Bruce Katz and Jeremy Nowak write about the new transformations we are seeing in local leadership and governance. They write,
“The current suite of supersized challenges and de facto devolution of responsibilities demands new models of networked governance and fundamental re-framing and refocusing of the leadership class in cities. The most effective local governance occurs in places that not only deploy the formal and informal powers of government but also create and steward new multi-sectoral networks to advance inclusive, sustainable, and innovative growth.”
Governance is no longer simply a government agency separate from the rest of the world. Businesses and public agencies are becoming more connected as the challenges, problems, and complexities of society increase. It is not enough for rules and regulations to be set in a compartmentalized way by a supposedly separate and outside agency.
Katz and Nowak continue, “The logic is incontrovertible: if cities are networks of institutions and leaders, then institutions and leaders should co-govern cities.” Leaders from business and civic organizations need to help govern alongside the agencies that set regulations. Government and business cannot be compartmentalized, and different sectors of business and public services cannot be compartmentalized. Cities are interdependent, creating networks that rely on each other to succeed. The risk here is that agencies will be captured by businesses and industry, establishing protectionist policies that help the business at the expense of the larger ambitions of cities and metropolitan regions. Katz and Nowak include suggestions in their book for new forms of quasi-governmental institutions which can translate the desires of businesses into public policy in a way that mediates the concerns of public agencies, businesses, and civic groups, helping further the inclusiveness of the decisions, rules, and regulations being put in place.