A Fresh Take on Public Asset Management

An area that I did not understand very well, since I have no real experience with city government, from Bruce Katz and Jeremy Nowak’s book The New Localism has to do with the management of publicly owned assets. According to Katz and Nowak, public infrastructure, public land, and locally owned buildings and spaces are underutilized and the value of these assets is poorly managed. Part of the reason for this is that much of government is split and segmented. One agency has control over a piece of land, and another agency has ownership of another near by asset. This fragmentation makes it hard for the city government to consider unified programs or projects that would utilize both of the nearby assets in a uniform manner.


Another issue the authors discuss with public asset management is elected political officials holding veto power over the use of public assets. Daniel Kahneman in his book Thinking Fast and Slow describes our risk avoidance tendencies, and I think these tendencies can easily be viewed in our elected officials and their veto power. Elected officials, like everyone else, is more worried about potential losses than they are excited about potential gains from the use or sale of assets. What is worse with elected officials however is that they ware worried about the loss of an electoral base, and the loss of a job from decisions regarding the use of public assets.


The authors write, “The removal of the political class from public asset management has a salutary effect on democracy by transitioning politicians from asset gatekeepers to consumer and citizen advocates on behalf of public asset productivity and quality.”


Instead of having elected officials be the ones in control of public assets, the authors suggest transferring ownership to quasi-governmental organizations that blend public, private, and civic actors. The authors envision new forms of port authorities or development organizations that would control public assets with a focus on maximizing public benefit. Elected officials would then be responsible for helping develop innovative uses for public assets rather than being responsible for the failure of projects and programs that use public assets. This is the essence of the point  that the authors make in removing the political class from public asset management. A rational organization that controls such assets can defragment them, and put them to better and more productive uses.

Technological Change

Colin Wright reflects on his place in the world in his book Come Back Frayed, which is about his time living in the Philippines at the requests of his fans and readers. During his time outside the United States, he commented on the technology he used to document his experiences, the changes he has seen in information technology over his life time, and the uneven distribution of technology between places like the United States and the Philippines. Regarding technical change, Wright writes, “The internet revolution happened when a technology was made common, cheap, and widely available to people of the world.”


Wright focuses on the last part of his quote and highlights the fact that not everyone is operating with equal tools, “Which brings me back to the smartphone,” continued Wright, “Science fiction author William Gibson famously said, “The future is here already, it’s just not evenly distributed.” So what happens when it is?”


I really enjoy the way that Wright introduces technology, technological change, society, and social change. In the United States we tend to be so focused on our technology that we forget how much of the world goes without the basic necessities we take for granted. Much has been written and many have made better comments than I can on the inequalities that exist between countries, but Wright brings up a point not often considered. When the rest of the world is in possession of game changing technology, what will we think of the technology? How will societies react? What will it mean for political regimes in rich  countries? The United States has seen debates about how information is handled on public versus private email servers over the last two years, and currently has a president who often has a questionable use of direct social media platforms. How could these same technologies impact less developed and less wealthy countries?


Wright’s thoughts aline with a passage I recently read in a public administration class at the University of Nevada. Joseph Nye Jr. in 2002 wrote for the Brookings Institute a piece titled Information Technology and Democratic Governance and he highlighted the role of technology as an agent of social and political change. Nye wrote that social and political change often lag behind the technological change, with political change falling in behind social changes. Combining his thoughts with Wright’s, we get a sense that the large changes that seem to dominate American life, are still building toward their greater impact. Once the technology we enjoy in the United States has become more commonplace around the world, we will begin to see more social change, which will be slowly followed by political change.