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On “public-private partnership”

N.S. Lyons delivers a provocative warning that the very mechanism touted to save Western economies from Chinese dominance is actively eroding the democratic foundations of the West. While many analysts focus on the economic mechanics of industrial policy, Lyons argues that the real danger lies in how "public-private partnerships" have evolved into a tool for elites to bypass the voting public entirely. This is not a standard critique of corporate greed; it is a structural indictment of how state power and corporate interests have fused to create policy outcomes that ignore national sovereignty and democratic consent.

The Democratic Void

Lyons begins by acknowledging the geopolitical reality: the Chinese model, where the state and corporations act as a single unit, has proven devastatingly effective. He notes that "nothing better supports this argument than the rise of China and its economic influence around the world." The author concedes that some level of coordination is necessary for the West to compete, stating that "free-market principles are not a suicide pact." However, the pivot here is sharp. Lyons warns that while the intent may be strategic, the execution has created a system where "the actual public seem to be left out of the approach entirely."

On “public-private partnership”

The core of the argument is that these partnerships operate as a convenient "end-run around the obstacle of the broader democratic process." Lyons suggests that the exclusion of the "demos" is not an accident but a feature, allowing stakeholders to pursue agendas without the friction of public debate. This framing is powerful because it shifts the blame from simple incompetence to a deliberate structural bypass. Critics might argue that complex global issues require technocratic speed that democratic deliberation cannot match, but Lyons counters that speed without consent is merely authoritarianism in disguise.

The interests of various 'stakeholders' – corporations, NGOs, state bureaucracies, and numerous self-interested officials – may be consulted, but the demos notably is not.

The Migration and Climate Complexes

To illustrate this erosion of accountability, Lyons points to two specific policy arenas: migration and climate change. He describes a "migration-industrial complex" where NGOs, state bodies, and corporations collude to facilitate movement across borders, benefiting from taxpayer funding and cheaper labor while ignoring the objections of national populations. He writes, "All parties involved are working together to achieve a shared goal that stands to benefit each of them across an array of material, demographic, political, and ideological interests." The author argues that this collusion allows elites to render democratic objections "irrelevant via fait accompli."

Similarly, the push for green energy transitions is framed not as a response to environmental necessity, but as a mechanism for state expansion and corporate profit. Lyons observes that these initiatives have "significantly grow the scope of state power while also leveraging government mandates and huge subsidies to force into life entirely new, otherwise unviable sectors." The human cost of this top-down approach is starkly described: "To them, what public-private partnership looks like in practice is the forced redevelopment of the family farm at the barrel of a police water cannon." This imagery is visceral and effective, grounding abstract policy debates in the reality of civil unrest and state violence against citizens.

The Censorship Industrial Complex

Perhaps the most alarming section of the commentary is the discussion of the "censorship-industrial complex." Lyons describes a transnational network of government agencies, tech giants, and NGOs working to suppress dissenting opinions under the guise of safety or truth. He argues that the goal of this effort is "to manipulate and silence growing public criticism of, you guessed it… elites' anti-democratic use of public-private collusion." The author connects this directly to the rise of populist movements, suggesting they are a natural "democratic backlash" against a system designed to sideline public debate.

The argument here is that when the fusion of state and corporate power is taken to its logical conclusion, the result is a threat to liberty itself. Lyons issues a stark warning: "if the West acts too much like China when it comes to the coordination of corporation and state, we risk becoming more like China in other ways as well." He concludes that the ultimate label for this fusion is "fascism," a term he uses not as a slur but as a precise descriptor of a state-corporate monopoly on truth and policy.

Yet, even so, this doesn't mean that public-private partnerships are always bad and can never be used wisely. As I said to start, I believe some level of state-corporate cooperation on critical issues like industrial policy is both inevitable and potentially very beneficial.

Bottom Line

Lyons's strongest contribution is his identification of the "democratic void" at the heart of modern public-private partnerships, exposing how these alliances often serve to insulate elites from the very populations they claim to serve. However, the argument's vulnerability lies in its broad brush; by grouping diverse initiatives from migration to green energy under a single umbrella of "collusion," it risks oversimplifying the complex, often genuine motivations of various actors. Readers should watch for how this critique of elite overreach translates into concrete policy safeguards that restore accountability without paralyzing necessary state action.

Sources

On “public-private partnership”

by N.S. Lyons · · Read full article

A little while ago I was asked to speak at an event on the use of “public-private partnership” to implement policy goals. I found I had to be a bit disagreeable on the subject. Here are those remarks, transcribed and lightly edited, in case readers here also find them relatable or clarifying in any way. – N.S. Lyons

We live in an era in which globalization and the geopolitical environment have arguably made a certain level of deliberate coordination between private corporations and nation-states – i.e. “public-private partnership” – a necessity for achieving the interests of both parties.

Nothing better supports this argument than the rise of China and its economic influence around the world. The Chinese economic model notably makes no clear distinction between corporation and state; its government lavishes support on corporate “national champions,” while those corporations act not only in the interest of profit but as agents of Chinese strategic national interests across the globe.

This model, it must be said, has been tremendously successful for China, helping to fuel its rapid economic expansion and allowing it to challenge American and European market dominance around the world. Even sectors traditionally considered critical to American national security, such as the defense and telecom industries, now see their supply chains dominated by Chinese companies.

In this context, the argument for some wise “corporate statecraft” – such as the concentrated application of industrial, technological, and trade policies to restore America’s defense-industrial manufacturing base – makes a lot of pragmatic sense. A degree of such coordination may simply be a necessity now in order to compete with China’s far more extreme use of the same model. Free-market principles are not a suicide pact.

However, I want to take on the responsibility today of warning that the public-private partnership approach also comes with some significant dangers and risks that we here – and our societies as a whole – ought to carefully consider and debate.

There are of course the traditional arguments against state-corporate coordination from both the political right and left that you’ve probably heard before. From the right, we are likely to hear warnings that state inference in the private sector risks undermining market mechanisms, and that “picking winners” risks creating significant inefficiencies and distortions. From the left, we are more likely to hear that corporate influence risks distorting the government’s responsibility to adequately regulate corporate behavior or to look ...