ABSTRACT
This chapter considers what it means to operate "smart" governance systems. We are unabashedly clear that smart governance systems need to be construed as smart, democratic governance systems. The notion of sovereignty within a democratic context is that those doing the governing need to obtain the consent of the governed. Some may argue that the democratic anchorage of governance networks is being eroded when certain groups capture the interests of governance networks, inevitably leading to behaviors and actions that mimic those interests captured in the process. Nonprofit organizations receiving government grants may become beholden to the political authorities that dictate the actions of their public funders. According to Bozeman, publicness is determined through the exercise of political authority. Governance has always encompassed the interplay of public, private, and voluntary sectors. Captured governments within a regulatory subsystem will be influenced more by the economic authority of the regulated entities.
