The economist Mariana Mazzucato is issuing a rallying cry for governments to reclaim their role as drivers of economic vision and ambition. In her latest book, The Common Good Economy: A New Compass, Professor Mazzucato argues that policymakers must break free from the straitjacket of narrow growth targets and instead focus on tackling pressing societal problems – such as inequality and climate change – through a collective effort.
Her critique of the current economic landscape is biting. Mazzucato contends that the widespread adoption of market-driven ideology in the 1980s led to a 'debasement of the public sphere', where citizens are viewed primarily as consumers rather than active participants in shaping their own destiny. This, she argues, has resulted in an over-reliance on market forces and a failure to address the increasingly pressing issues facing modern societies.
Mazzucato is unapologetic in her assertion that governments possess the power to shape markets and drive economic change. She rejects the notion of governments as passive actors, instead advocating for decisive action to invest in public projects that can inspire collective ambition. The economist dismisses concerns about funding, stating that there is sufficient money available, but rather it is being misdirected due to a lack of clear government purpose.
Central to her philosophy is the concept of an 'objective-oriented economy', where the purpose is co-created through genuine public participation and engagement. Mazzucato advocates for 'mission-oriented' projects – such as the Artemis space programme – which she believes can create a positive, forward-looking narrative that inspires the public and drives meaningful economic development.
This perspective offers a refreshing alternative to prevailing economic orthodoxies. By advocating for a more proactive, purpose-driven state, Mazzucato's work has previously influenced political discourse, including Labour's 'missions' approach – although she expresses disappointment with the current lack of clear direction from the opposition.