Policy Paper

Collaborative Governance: Why Governments Can’t Transform Alone

Executive Summary

Governments face increasingly complex, interdependent challenges — climate change, digital transformation, public health crises, social inequality — that cannot be addressed effectively by any single actor. Collaborative governance(multi-stakeholder, cross-sector decision making and implementation) offers a path to more resilient, inclusive, and sustainable transformations. This paper argues that government transformation efforts must embed collaborative governance, explores key enablers and barriers, examines global case studies, and makes recommendations for policy design and institutional reform.

Table of Contents

1. Introduction: The Case for Collaborative Governance

2. Defining Collaborative Governance

3. Why Governments Alone Cannot Transform: Drivers of Complexity

4. Key Enablers of Effective Collaborative Governance

5. Common Barriers and Risks

6. Case Studies

   • Urban Living Labs and Co-creation (London, Milan, Hamburg)

   • Digital Government in West Java, Indonesia

   • Policy Entrepreneurship Strategies

7. Policy Recommendations

8. Institutional Implications and Governance Reform

9. Monitoring, Evaluation & Learning

10. Conclusion

1. Introduction: The Case for Collaborative Governance

Modern societal challenges are systemic: they cross boundaries of sector, scale, and jurisdiction. For example, climate adaptation involves environmental regulators, infrastructure agencies, local communities, private sector investment, and civil society. Governments acting alone risk siloed responses, duplication of effort, inefficiency, low legitimacy, and even unintended negative consequences.

Collaborative governance amplifies legitimacy, resource mobilization, innovation, and adaptability. It allows leveraging of diverse knowledge, distribution of risk, and shared ownership of solutions. As seen in urban transformation, digital governance, and environmental policy, collaboration can help governments navigate complexity more successfully.

2. Defining Collaborative Governance

Collaborative governance refers to formal and informal processes where public agencies engage with nongovernmental actors (civil society, private sector, communities) in decision making, implementation, and evaluation. Key elements include shared authority, joint problem definition, mutual accountability, participation, and cross-boundary coordination.

Distinctions:

• Whole-of-government approaches, which coordinate across government departments. Wikipedia

• Place-based governance, which brings attention to locality, context, and community actors. Oñati Socio-Legal Series+1

• Co-creation & co-production: going beyond consultation to shared design and delivery.

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3. Why Governments Alone Cannot Transform: Drivers of Complexity

• Systemic and cross-sectoral challenges: Many issues cut across ministries and sectors (for example, digital infrastructure, climate, public health).

• Policy interdependencies that require coordination across levels (local, regional, national, global).

• Rapid technological, environmental and social change, which puts pressure on rigid bureaucracies that may lack agility.

• Stakeholder expectations: citizens increasingly demand transparency, participation, accountability.

• Resource constraints, including financial, human, and knowledge resources — partnerships enable pooling resources.

4. Key Enablers of Effective Collaborative Governance

5. Common Barriers and Risks

• Power imbalances: Governments often dominate the agenda; some stakeholders marginalized.

• Coordination failures: Differences in mandates, cultures, incentives, legal constraints.

• Accountability challenges: Who is accountable when many actors are involved?

• Sustainability issues: Collaborations may wane when initial funding or political support fades.

• Legitimacy and representation: Risk that collaborations are elite-driven, excluding marginalized voices.

• Complexity costs: Time, effort, transaction costs; risk of slower decision making.

6. Case Studies

Urban Living Labs & Co-creation: London, Milan, Hamburg

• The CLEVER Cities Horizon 2020 project examined how co-creation processes in Urban Living Labs (ULLs) in London, Milan, and Hamburg led to innovations in governance structures. These included more polycentric governance, shared decision making among public, private, academia, citizens. MDPI

• Findings point to phases of initiation, mobilization, adaptation, consolidation, with governance shifting from top-down to more shared, networked forms. MDPI

Digital Government Transformation: West Java, Indonesia

• Study of local government digital transformation in West Java shows how collaborative governance, including civil society, private sector, and dedicated units (like Jabar Digital Service), enabled more responsive and inclusive policy processes. ResearchGate

Policy Entrepreneurship & Innovation in Collaborative Governance

• Research on policy entrepreneurship demonstrates that individuals or organizations can catalyze collaborative governance by shaping policy design and promoting cross-sector innovation. Taylor & Francis Online

7. Policy Recommendations

1. Institutionalize collaborative governance through laws or formal policy instruments: require stakeholder engagement, co-design mechanisms, cross-agency coordination.

2. Provide dedicated coordination units (secretariats, digital platforms) that convene across sectors and scales.

3. Ensure representation & equity: include marginalized communities, ensure gender, socio-economic inclusion.

4. Invest in capacity building for both government officials and external stakeholders in collaboration, negotiation, digital tools, data use.

5. Secure sustainable financing: multi-year funding, shared costs, private sector partnerships.

6. Create clear accountability and transparency frameworks, with metrics for both process and outcomes.

7. Promote adaptive & experimental governance, including pilot projects, iterative feedback, public learning.

8. Institutional Implications and Governance Reform

• Rethink hierarchical structures: flatten decision-making where possible to enable faster collaboration.

• Legal/regulatory reform to enable data sharing, inter-agency collaboration, public-private partnerships.

• Reform performance metrics: measure collaboration success, not just outputs of single agencies.

• Embed collaborative governance in public service procurement, regulation.

9. Monitoring, Evaluation & Learning

• Develop indicators for collaborative governance (stakeholder diversity, trust, shared decision making, transparency, resilience).

• Use both qualitative and quantitative methods, including stakeholder surveys, process evaluations, case studies.

• Institutionalize learning loops: regular reviews, public reporting, peer learning across jurisdictions.

10. Conclusion

Governments, no matter how well resourced or visioned, cannot on their own deliver the transformative societal change that today’s challenges require. Collaborative governance is not “nice to have” — it is essential. Well-designed, inclusive, adaptive collaboration unlocks innovation, gives legitimacy, ensures sustainability, and helps manage complexity. Policymakers who embrace it will be better positioned to respond to crises, implement reforms, and leave sustainable legacies.

References

• Bradley, S. et al. Integrated Collaborative Governance Approaches towards Urban Transformation in CLEVER Cities. Enviro-planning journals. MDPI

• Maulana, R. Y., Durnik, M., Decman, M. Collaborative Approach on Digital Government Transformation: In-Depth Analysis from Expert Interview. NISPAcee Journal. ResearchGate

• Mian, A. S., Shen, J., Vlahu-Gjorgievska, E. The Determinants of Digital Government Transformation Through Collaborative Governance. OpenReview

• Larrea, M. A place-based approach in collaborative governance. Oñati Socio-Legal Series

• Acebillo-Baqué, M. Policy entrepreneurship in collaborative governance.