**4. Discussion**

Each of these governance arrangements seems to raise questions on the boundary between public and private and to what extent public purpose is achieved where the public and private aspects of delivery intersect. The blurring of the lines between public services and privatisation is consistent with a pattern of entrepreneurial states Mazzucato argues have historically had as a characteristic of delivering infrastructure, technology, research and development for long-term public goods [12]. While not a causal relationship from this analysis, there is evidence to suggest an association between this type of system and an adaptive arrangement of actors that can adapt based on needs within the system. The multi-stakeholder board of EPM achieves this by including representation from public, private and non-governmental interests alike, who in having decision-making power at the level of the board can negotiate the provision of services in the city, ensuring that the public purpose that the company was established to fulfil is in balance with its commercial aims. Similarly, the earmarked 30% profit which is transferred annually from the company to the city reflects a closeness between public and private entities yet with arrangements for how the funds are spent in order to deliver public good. This is one example of several governance arrangements set out by the code of corporate governance which includes autonomy for EPM in terms of budget and administrative purposes. The code also safeguards EPM from political interference such as contracting processes, financial planning and processes as well as appointing independent directors.

The independent nature of governance EPM, in terms of business growth with constraints on earmarked funds for local social projects suggests that this autonomy-within-limits approach ensures that the city can convert its wealth into freedom, whilst ensuring that there are ways in which the market can serve public purpose. Whilst not explored in this research, policy evidence has suggested that because the market and political social context of Medellin is thriving and, on the rise, coupled with the success of EPM's services, that companies like EPM are able to access international loans for expanding infrastructure. While not established as causal, this does suggest that there may be an association between market, public and social stability and increased investment. There are questions around the boundaries of adaptive governance and how far this can be stretched within a system, with further questions about transparency, accountability and conflicts of interest, yet this example allows us to explore further questions from a starting point where the intersection of public and private is a norm.

What goes beyond seemingly mitigating the adverse effects of financialization and encouraging investment, is an ongoing dialogue by the company and the city on how to deliver public purpose. Recall that EPM as a company was founded with the purpose of engaging in planning of the city and ensuring uniform, stable and resilient access to utilities. As the city evolved, there were different demands that the company and city had to respond to. For example, when there was a surge in population growth, EPM and the city collaborated extensively on housing and land-use reform. When public and social cohesion was destroyed, EPM and the remaining civil society worked together to help rebuild the social fabric. And currently, as there is pressure to ensure that the success of the company is in parallel with success in the city. There is widespread debate on what this success in the twenty-first century would mean for the future of Medellin as an entrepreneurial city or as it is described as an 'innovative city.' Perhaps, though the very nature of its innovation and entrepreneurship is in its capacity to have an ongoing dialogue with all parties involved about what that would look like.

**213**

*Adaptive Governance as an Avenue for Delivering Public Purpose in the Wake of Financialization*

In reflecting upon the experience of Medellin, the governance of public services

Special thanks and support to colleagues Ivan Sarmiento and Peter Brand at the National University in Medellin, Colombia. Julio Davila from the University College London Development Planning Unit. Special thanks to stakeholders from various institutions that provided insights for the interviews including environmental organisations, utilities, urban, metropolitan and regional authorities, civil society, community-based and academic institutions. This research emerges from a PhD studentship funded by the Transforming the Engineering of Cities Grant by the Engineering Physical Research Council (EP/J017698/1). The views expressed are

Dr. Corina Shika Kwami oversaw the planning, obtaining ethical clearance, data collection, analysis of the data and writing of the paper. As it was part of a wider study for a doctorate, Dr. Nick Tyler supervised the work and provided comments

from the authors only and do not represent a stance from the Council.

is characterised as adaptive and designed in ways that can facilitate delivery of public purpose through utilities despite a trend towards financialization in the public services worldwide. While not the end goal, the composition of the multistakeholder board, 30% transferred profits annually for social transformation projects and the code of corporate governance serve governing arrangements in place to facilitate a dialogue between the public and private aspects of the system, with a broad base of stakeholders that operate within and across these boundaries. The strengths of this type of investigation are that it allows for exploring in depth, the contextual background in which these innovative governing arrangements are situated. This type of model also shows the limitations in discerning where boundaries between public and private sector lie in delivery of long-term public goods. While these findings are context specific and not identified as causal, transferability is something that would require further analysis. There are also questions around the boundaries of adaptive governance and how far this can be stretched within a system, with follow on questions about transparency, accountability and conflicts of interest. While this case does not explore these aspects beyond the governance design, this case provides a starting point for future work where the intersection of public and private is a norm. With these constraints in mind, however, there is scope to position the Medellin example to spur dialogue on how adaptive governance could be explored further in efforts to deliver public purpose in the wake of financialization, and further, how governance might promote processes for achieving aims that go beyond public and private boundaries. Looking beyond Medellin, possible next steps would be to identify synergies with other seemingly entrepreneurial cities and explore more

*DOI: http://dx.doi.org/10.5772/intechopen.89270*

fully under what conditions these features thrive.

No competing interests from any author.

**Acknowledgements**

**Conflict of interest**

**Author contributions**

at various stages of the written work.

**5. Conclusion**

*Adaptive Governance as an Avenue for Delivering Public Purpose in the Wake of Financialization DOI: http://dx.doi.org/10.5772/intechopen.89270*
