Government Business
Article | July 11, 2022
Unless America and China assume joint leadership for global economic recovery, reconstruction of the post-coronavirus world could take years, with unimaginable consequences for the world’s 7.8 billion inhabitants, including unprecedented levels of global unemployment, famine, and even war.
In the pre-coronavirus world, suggestions for a partnership between the world’s two superpowers would have been met with gales of laughter. But now, despite the two leaders’ daggers drawn posture, hundreds of doctors and scientists in the U.S. and China are already working together on clinical trials of potential coronavirus drugs; and one of China’s biggest property developers has funded a five-year $115 million project between Harvard University and the Guangzhou Institute for Respiratory Health.
But the window of opportunity for acting together is short. The Covid-19 pandemic continues to decimate the world’s economies. Unemployment in the U.S. now tops 22 million, a level not seen since the great-depression of the nineteen-thirties; while China’s economy stopped growing for the first time in four decades as half a million small and mid-size businesses, the backbone of China’s economy closed; and Italy, the second largest manufacturing economy in the EU watches helplessly as the pandemic axe dismembers its economy. Were India and Africa were unable to control the coronavirus the results could be catastrophic.
So, are there issues of such import and mutual benefit that they would convince President’s Trump and Xi Jinping to work together? I believe there are. My two cents worth below.
The two superpowers could leverage China’s vast, trillion-dollar global infrastructure project—the Belt and Road Initiative or BRI, that aims to build infrastructure in over 120 countries of Asia, Europe, and Africa. The BRI is designed to act as a conveyer belt to transmit Chinese investment and technology into these countries to improve their economies, and to link them to China. But now Covid-19 has crimped China’s ability to sustain BRI’s trillion-dollar underwriting tab and President Xi Jinping’s grandiose vision is at risk.
On the other hand, the United States, which has been searching for a counter to BRI, has settled on an initiative called the Blue Dot Network or BDN. The idea behind the BDN is the U.S. would rigorously vet infrastructure project applications in developing countries to ensure high levels of transparency, sustainability, and economic viability before seeding them with startup funds from the U.S. Government. The BDN hallmark would then inspire confidence in the projects to attract private U.S. funding.
But the relatively paltry BDN budget of $60 billion (versus China’s 1000 billion or trillion-dollar BRI budget) and developing countries’ skepticism of Western (read U.S.) dominated standards for infrastructure construction have hobbled the BDN.
If the U.S. and China could find a way to combine BRI and the BDN it would ensure a stream of dollars from private U.S. companies into BRI and ensure its projects remain on track to create jobs and raise living standards around the world. The compromises required by America and China to weld BRI and BDN together would ensure the U.S. gets a seat at the table to influence the adoption of standards for starting and executing BRI projects.
Here’s another idea: The U.S. military is especially qualified to help fight natural disasters. In 2004, for instance, 3,000 U.S. military personnel were deployed to West Africa to help combat a deadly Ebola epidemic. Their work included constructing 17 hospitals, field training, and deploying assistance by air to remote villages. Today the U.S. military is being used to rapidly set up hospitals in U.S. cities to handle the burgeoning coronavirus caseload. The People’s Liberation Army meanwhile seems determined to play a more active global role in peace-keeping projects around the world.
Coronavirus-aid projects delivered to less-off countries through joint U.S.-China military teams would double what the U.S. and China could do on their own. And help establish the military to military connections that the U.S. has tried to foster with China for some time. A working relationship between the two nations’ militaries might even lead to a more stable geopolitical balance of power.
The Chinese word for crisis contains two characters. One signals danger, the other opportunity. Presidents Trump and Xi Jinping should boldly find a way to join forces to convert the deadly Covid-19 crisis into an opportunity that would supercharge global economic recovery and might well change the course of the 21st Century. It is a once in a lifetime opportunity that ought not to be squandered.
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Article | May 26, 2021
The COVID-19 pandemic touches every aspect of business, technology, and society. And stable and effective government is at the heart of managing through this crisis. What we do now will have longer-term implications for the health and safety of our families, our citizens, the economy, and even global stability. In the past few weeks, IBM has collaborated with many of our government clients and is driving action across three critical phases of response.
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Government Business
Article | July 14, 2022
The House of Representatives laid out an infrastructure plan on June 18 – an expensive one with a price tag of approximately $1.5 trillion. It will not, of course, pass Congress in its current state, but it promises to start the critical and overdue conversation in Washington about infrastructure.
But, there’s an omission that hopefully will be addressed and debated in Congress. The new plan makes little mention of funding for America’s outdated public technology infrastructure. Yet, the nation’s technology is a critical component of its infrastructure.
Some leaders hope to make Congress aware of the challenges public officials face as they try to manage with old legacy technology systems that should have been replaced a decade ago. Broadband will likely be addressed, but all kinds of other technology assets need attention as well.
When taxpayers think about what infrastructure should include, there is not a consensus. Roads and bridges are certainly considered as public assets and will be included in every discussion of infrastructure. Water, power, schools, health care, and even the Postal Service are named in the new plan that passed the House of Representatives. But, the new bill, which is called the Moving Forward Act, does not mention government’s basic technology infrastructure.
One definition of infrastructure is “the basic physical and organizational structures and facilities needed for the operation of a society or enterprise.” Surely, technology falls into that category.
There’s no argument that America’s global economic future depends on its technology infrastructure as well as its transportation infrastructure.
But, public officials in governmental entities throughout the country attempt to provide services on old legacy systems that are decades past replacement stages. Public databases and networks are vulnerable to cyberattacks. The technology found in cities, counties, school districts, and governmental agencies is more than old and inadequate it is simply unreliable and in some instances could be considered dangerous.
In a world of ‘big data’, artificial intelligence, cloud computing, apps, the Internet of Things (IoT), and extreme security requirements, government technology assets lag too far behind in America.
Public officials don’t have funding to replace the antiquated technology systems. As Congress debates infrastructure reform, technology should be a part of the conversation.
Those in agreement that the national debt does not need another $1.5 trillion hit may advocate for ways to encourage private sector funding for the many needs of infrastructure. Collaborative initiatives could be structured in the final infrastructure bill so that there are incentives for alternative funding and private sector expertise, as well as guidelines to protect taxpayers and public agencies.
The inclusion of technology needs in any infrastructure discussion is, at the very least, worthy of discussion.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Article | July 3, 2020
The CARES ACT (Coronavirus Aid, Relief, and Economic Security) passed by Congress created a sprawling, multi-faceted plan to combat COVID-19 and its debilitating effects on the U.S. economy. Signed into law in March, the $2 trillion relief package allocated funding for preserving jobs, backfilling government budgets, helping school districts, providing assistance for the unemployed and establishing grant programs for various industry sectors such as transportation and telecommunications.
There are murmurs of a second stimulus bill which could be debated as soon as July, with the president on July 2 expressing his support for one. But, billions of dollars remain in the CARES Act funding for numerous programs. Much of that funding has reached recipients already, and more should start flowing at any time. All parties and stakeholders are eager, of course, for the funding to reach governmental entities. CARES Act funding programs include the following examples.
The Elementary and Secondary School Emergency Relief, or ESSER, program was established with approximately $13.2 billion. This funding is designated for public school districts through an application process that has oversight from each state’s centralized education agency. Texas school districts received $1.29 billion through the program, just behind the state of California, which received the highest allotment at $1.6 billion. Other states receiving a larger share of ESSER funding are New York ($1.03 billion), Florida ($770 million), Illinois ($569 million), and Georgia ($457 million).
The program requires that at least 90 percent of the grant funding must be awarded to schools that received Title I, Part A funding during the 2019-20 school year. That stipulation will result in only school systems with a high number of students from low-income families being eligible for the bulk of the revenue. Applications are to be submitted to the state education agency for review and approval. However, decisions about how the funding is used are to be made by local officials in the school districts.
Another part of the CARES Act provides billions more in funding for airports. The Airport Improvement Program (AIP) offers $10 billion in distributions through grants for capital projects. This revenue can also be used to fill funding gaps in fiscal year 2020 budgets, since airport systems throughout the nation sustained such heavy losses as a result of the pandemic. Previously, the grants required a local funding match, but the CARES Act increased the federal share to 100 percent.
The AIP program allocates $7.4 billion for commercial airports that serve more than 10,000 passengers annually. Another $2 billion is set aside for commercial airports and general aviation airports. Looking at the listed intended uses of these funds, it appears that many airports will have thousands of upcoming contracting opportunities. Millions will be spent on projects to extend and/or rehabilitate runways. Other airports plan to install new lighting, expand terminals, purchase additional safety equipment, reconfigure taxiways, conduct studies, and develop planning documents for future expansion.
Cities and counties are most eager to participate in the $5 billion in funding available for local government programs and projects through the Community Development Block Grant, or CDBG, program. This funding is intended for local governmental officials to use for corridor redevelopment, economic development initiatives and other projects. Every state received funding and some of the larger allocations were designated for Texas ($63.4 million), California ($113 million), Florida ($63 million), and New York ($70.5 million).
The U.S. Economic Development Organization continues to accept applications for projects that reinvigorate regional economic recovery, with $1.5 billion earmarked in the CARES Act for the Economic Adjustment Assistance Program. Through grants for projects that “leverage existing regional assets,” this program is designed to support economic development within distressed communities. Funding is available to states, counties, universities, and regional planning organizations, as well as for public-private partnerships.
Examples of funding allocated through the program include the award of a $400,000 in grant to the Kennebac Valley Council of Governments in Maine to update its economic development plans and provide COVID-19 services. In Texas, the Concho Valley Council of Governments in San Angelo received a $2.2 million grant to purchase a building for its regional headquarters.
The city of Odessa is using $927,708 in CDBG grant money for several social services programs and to supplement local nonprofits’ efforts during the pandemic. And the city of Lewisville recently received $5.8 million in CARES Act money, which includes $452,305 in CDBG grants.
The Federal Transit Administration is distributing $25 billion with approximately $22.7 billion earmarked for large and small urban areas and $2.2 billion set aside for rural areas. This funding does not require a local match of any kind, and it can be used for capital projects and for operations and/or planning purposes, as long as those activities relate in some way to COVID-19.
Transit agencies in urban areas with a population over one million --- such as Cap Metro, which received $104 million --- are getting $17.5 billion through the FTA. Transit agencies serving areas with populations fewer than one million --- such as Brownsville, Texas, which is receiving $7.6 million --- are getting $5.1 billion.
In the middle of the current, historic pandemic, the economy will significantly be stimulated by projects and initiatives that result from this funding. Public-private collaboration will not only create jobs and generate additional revenue flow, it will result in getting Americans working together again … and that will serve the country well.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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