Professor Mariana Mazzucato, Founding Director of the Institute for Innovation and Public Purpose (IIPP) at University College London (UCL), today presented a new report addressing transformational change in Latin America and the Caribbean, during an event parallel to thirty-ninth session of the Economic Commission for Latin America and the Caribbean (ECLAC), which takes place from October 24 to 26 in Buenos Aires, Argentina.
The document titled Transformational change in Latin America and the Caribbean: a mission-oriented policy approach, which was commissioned by ECLAC, was unveiled at an event held at the headquarters of the Ministry of Science, Technology and Innovation. Along with Professor Mazzucato, José Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, and Daniel Filmus, Minister of Science, Technology and Innovation of Argentina, were present. On the occasion, the report was commented on by Cecilia Todesca, Secretary of International Economic Relations of the Ministry of Foreign Affairs, International Trade and Worship of Argentina; José Antonio Ocampo, Minister of Finance and Public Credit of Colombia; and Luis Felipe López Calva, Global Director of Poverty and Equity of the World Bank.
The document calls on the governments of Latin America and the Caribbean to promote modern industrial strategies oriented towards climate and inclusion objectives, in a radical turn with respect to traditional models of economic development.
In her report, Professor Mazzucato underlines the need for structural reform to address lagging productivity, limited fiscal space, and weak public sector capacity in the region. She sets out clear recommendations for aligning each country’s economic growth trajectory with solving social, economic, and environmental problems through a new “mission-oriented” approach to investment, innovation, and industrial strategy.
“Transforming these structural challenges into structural opportunities for inclusive growth, sustainable development and shared prosperity is the goal of this report. It is about not only talking about the pace of economic growth, but also, and crucially, about its direction.” “, says Professor Mazzucato.
During his presentation, Mazzucato exemplified the theme of the pandemic. “COVID-19 should have been a moment of mass awakening about public-private partnership. Because in many countries things should have been done, but they were done too late. The lack of preparation was actually quite stark,” he said.
He added that the crisis was not really used to help steer the economy in a way that would actually “build back better.” “The question is how can we really solve the great challenges of our time – health, digital divide, climate – but in a way that is driven by investment and innovation, which if it works well can actually help us solve or address at least these huge structural problems”, explained the UCL Professor.
In his introduction to the presentation, the Executive Secretary of ECLAC, José Manuel Salazar-Xirinachs, pointed out that the most innovative aspect of Professor Mazzucato’s work is the focus on missions that she proposes in terms of productive development policies (PDPs), on all in the field of governance, of how to organize the collective efforts of the different actors, in particular the private sector, public institutions, academic and research and development institutions, workers’ organizations, financing institutions and all those that are relevant to growth, innovation and human talent for the sector or the specific challenge.
“The history of the region’s development shows that market forces alone cannot solve the problems of growth, investment, employment and poverty. For this reason, it is important, more than ever, to take advantage of the opportunity that the moment offers: to formulate and implement PDPs that aim at the transformation and diversification of production, and that contribute to social inclusion and environmental sustainability”, declared the highest authority of ECLAC .
“We hope that this document will help inspire governments in the formulation of renewed strategies and industrial policies and productive development in general, in a new era of exchange of knowledge and experiences among the governments of the region”, emphasized Salazar-Xirinachs.
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For other queries about the thirty-ninth session of ECLAC, contact the organization’s Public Information Unit in Santiago, Chile. E-mail: [email protected]; telephone: (56) 22210 2040.
