Interactions between government officials and private companies can be controversial. In the U.S., there are growing fears of corruption and the influence of lobbyists in the government. I have seen this lead towards greater hesitation throughout government in interacting with the private sector. But cures aimed at the ills of private sector influence must be careful not to be worse than the disease.
Private sector partnerships are important for good government policy and strong economic growth. They may even be essential, according to a 2008 report by the Economic Commission for Latin America and the Caribbean. This report studied countries that were very poor and managed to turn around their economies in the second half of the 20th-century, including Singapore, Finland, and Ireland. Perhaps their examples can help us turn around our own economy.
Below is a graphic depiction of the transformation of Singapore, Finland, and Ireland from economic backwaters to the per capita equivalents of the United States and Europe*:
Source: Economic Commission for Latin America and the Caribbean.
*U.S. and Europe defined as the top bar, labeled "high-income OECD countries."
The results seen by these countries is dramatic. Astounding, even. To go from terribly poor and largely illiterate to affluent in the span of a few decades is a feat of human achievement that is rarely paralleled.
So how did these countries do it? What did they achieve that the Latin America group did not that led to this explosive economic growth?
According to the report, Singapore, Finland, and Ireland formed alliances between their governments and their respective private sectors. These were not merely handshake agreements between corporate consultants and congressmen. No, these were formal, structured alliances with councils and forums that conducted strategic planning together, and met to discuss issues of national importance and as they related to the national economy. And the advice given and decisions made by these alliances were taken seriously by government officials, and were acted upon in the form of new policies, programs, and legislation. Through these structured partnerships, these countries were able to transform their economies.
Similar practices, to varying degrees, have been seen in Australia, Czech Republic, New Zealand, Spain and Sweden. Not so unfortunately in Latin America, save for Panama, and not so in the United States, with some focused exceptions.
The truth this attempts to unearth is that government cannot produce effective economic policy without very close input from those affected by it. These alliances capture that input by including the private sector as well as the social sector, such as the educational and non-profit sectors. The public-private alliances described in the report compel the decision makers and experts from these sectors to talk and listen to one another, and make legitimate decisions together. It gives these relationships structure.
Since there is no national structure to these consultations in the U.S. like there are in Singapore and Finland, corporations and government must rely on lobbyists to opaquely share critical information. With structured partnerships, there would be less need for the lobbying, the opaque information sharing and consulting, that the American people have justifiable concerns for. The appetite for this information would be sated, transparently.
Similar practices, to varying degrees, have been seen in Australia, Czech Republic, New Zealand, Spain and Sweden. Here is a graphic example of Panama's private-public alliance, for example, which formed a "National Council" that held representation from the entire country, totaling 24 sectors, to solve the problem of Panama's persistent income inequality and stagnant job growth:

If these examples are to be believed, it is clear that the problem that U.S. government officials face is not that the private sector is too influential, contrary to one increasingly popular opinion. No, this influence is essential for good policy. The problem is that it is unstructured and opaque.
The private sector lacks a structured way of communicating with us in the government and social sectors. And until that occurs, the best we in government can do is to guess through internal research, and to communicate as best we ethically and practically can, but under the auspice of suspicion, and at times outright hostility.
It is not the way it has to be.