Published: 03/08/2024
Germany stands out as a great example of integrating democratic values into the management and governance of implementing public policy. Notably, it supports a free market economy by genuinely applying public-private partnerships.
How do they do it?
Government ministries and agencies define policies but delegate implementation through contracts to private organizations. The state enters into agreements with NGOs and private companies, sets clear requirements and authorities, while these organizations operate independently—recognized by international bodies, registered within global systems, providing useful services to clients, and generating income through market mechanisms without full reliance on government funding. This is the core regulatory framework.
A concrete example:
The German national standardization body is DIN (Deutsches Institut für Normung). Interestingly, DIN does not call itself a government agency; instead, it identifies as a “public interest organization,” signaling its commitment to serving citizens and the public.
DIN holds NGO status and contracts with the government to develop, approve, and sell engineering and technical standards across all sectors except health, as well as to provide training and information to companies and individuals.
Key facts about DIN:
- It functions like a parent organization, representing 37,000 professional engineers and experts nationwide. Among them, around 3,800 high-level specialists, engineering firm directors, and innovative technologists regularly contribute to standard development projects and technical committees.
- DIN receives no government salary budget. Occasionally, it collaborates on government-funded projects through tenders or paid contracts.
- Its main vision is to proactively develop manufacturing standards aligned with the latest technological advances. Unlike reactive approaches that wait for problems before acting, DIN anticipates innovations—such as AI, robotics, and aerospace technologies—by involving engineers early on to create relevant standards ahead of industrial adoption.
DIN emphasizes creating original standards and gaining approval from major international bodies, rather than simply copying foreign standards. This ensures “we uphold global standard quality” and that Germany’s standards are internationally recognized. This contrasts with approaches that merely adapt or “localize” foreign standards. Instead, Germany strives to have its own methods accepted globally.
Under DIN operate two commercial companies:
- DIN Media GmbH manages online sales of standards, ensuring seamless operations, revenue generation, and sustainable business growth. It develops and distributes the “Nautos Standards Manager” app. Like DIN, it is self-funded without government salaries, thriving on market success and dedicated leadership.
- DIN Software GmbH supports enterprises in understanding and complying with standards. It develops software and offers training to help companies align purchasing, sales, and operations with relevant standards. This service helps prevent issues like non-standard construction or infrastructure failures, promoting a culture of compliance and quality.
Another noteworthy institution is DAkkS, Germany’s sole national accreditation body. Operating as a private company under a business model, DAkkS is self-financed through projects and services, not government salaries.
German public organizations, ministries, and agencies rely on DAkkS-accredited professionals for critical roles like environmental greenhouse gas accounting or energy efficiency assessments. For example, environmental authorities require experts trained and certified by DAkkS-accredited centers, and they contract with DAkkS-accredited auditors and certification bodies.
While many international bodies operate in Germany, accreditation requirements follow international standards, and there is no policy insisting only German government agencies may perform these roles, nor a rejection of foreign organizations.
Conclusion:
For Mongolia to effectively support its business community, it should avoid concentrating all authority and responsibility in government hands. Instead, delegating specialized professional services to private organizations through contractual agreements is preferable.
This approach reduces budget risks, motivates contracted entities to deliver high-quality work aligned with international standards, attracts clients, generates sustainable revenue, and drives continual improvement. It balances government oversight with business efficiency and global competitiveness.
