The Common Good Economy

Our current economic framework is fundamentally flawed. The accelerating climate crisis, growing inequality, and deteriorating public trust underscore the need for change. Wealth continues to concentrate in a few hands, while governments are preoccupied with fixing issues that markets fail to address, instead of proactively shaping those markets from the beginning. Traditional economics often frames public goods and the commons as afterthoughts to market or government failures, trapping us in a cycle of reactive measures instead of building the economy we truly need.In "The Common Good Economy," Mariana Mazzucato leverages her groundbreaking concepts of the entrepreneurial state and mission-driven policies to propose a new theory centered on the common good. This approach facilitates the creation of meaningful economic partnerships between governments and businesses, aiming to generate value and cultivate environments conducive to human prosperity. Mazzucato emphasizes the importance of the way we meet collective objectives—through shared effort, community involvement, and mutual benefit—which is as crucial as the goals themselves.The book outlines a practical guide, referred to as the 'common good compass,' designed to steer our economies towards a transformative path. Filled with compelling real-life case studies, ranging from water governance to innovations in procurement and finance, Mazzucato’s work is a thorough rethinking of economic principles and a call to action for an economy that prioritizes the well-being of people and the planet. This innovative approach is critically needed at this juncture.