In her latest book, The Common Good Economy, Mariana Mazzucato argues that economic success requires a sense of purpose, not just a wish for growth. The high-profile leftwing economist, credited as an inspiration for Keir Starmer's 'mission-led government', suggests that Labour has struggled to project the direction needed for such an approach.
Mazzucato proposes 'a new economics of collective action around the common good', where the economy is seen as a series of projects with direction and purpose, rather than a set of forces to be contained. She calls for finance to be turned to collective goals, corporations' creativity channelled to the public good, and a rejection of the 'false narrative' that economic growth is antithetical to tackling the climate crisis.
The book outlines five principles for a common good economy: purpose and directionality; co-creation by citizens; collective learning; reward sharing; and accountability. Co-creation involves grassroots participation in government programmes, while reward sharing means ensuring creators of economic value, such as Indigenous people and social media users, benefit. This implies radical tax reform, including wealth taxes, and robust use of conditions in public contracts.
Mazzucato's argument builds on her earlier work, including The Entrepreneurial State, but here she rejects the 'gap filling mode of thinking' that treats social problems as side-effects of growth. She criticises Labour's overriding goal to 'kickstart economic growth' as lacking purpose, asking what that growth is meant to be for.
While the exposition can be cumbersome, Mazzucato provides practical examples, from sustainable school meals in Sweden to the EU's climate-neutral cities mission. 'The seeds of transformation are everywhere,' she writes, and echoes of her mindset are detectable in some Labour policies, such as using legislation to cajole pension funds into investment.
