Professor Mazzucato Calls For New Global Economic Consensus Under South Africa's G20 Presidency

For the first time this year, the G20 will convene on African soil, amid a rising geopolitical crisis, trade wars, and intensifying calls to foster a more inclusive and equitable international economic order. The President has put three bold themes at the centre of the process: solidarity, equality, and sustainability.

It is in this context that the South African President has asked Professor Mariana Mazzucato to join him as Technical Expert to South Africa's G20 Presidency and Special Representative of President Ramaphosa to the G20 Taskforce 1 on Inclusive Economic Growth, Industrialization, Employment, and Reduced Inequality.

"It is an honour for me to accept this role. Climate breakdown, widening inequality, and mounting debt distress demand a new international economic consensus—one that puts people and planet at its core. Shaping a new economic system driven by the three G20 themes is a must," said Mariana Mazzucato.

Laying out a bold vision to guide South Africa’s G20 Presidency, Professor Mazzucato has launched a discussion paper for the G20 titled 'Principles for an Inclusive and Sustainable Global Economy'. Released today by the South African G20 Presidency, the paper provides concrete recommendations for aligning green finance, industrial policy, and international economic governance to meet today's pressing challenges.

Professor Mazzucato is the founding director of the UCL Institute for Innovation and Public Purpose and has been advising the President since 2018 as a member of the South African President's Economic Advisory Council (PEAC). In her G20 role she will be focused on helping the G20 make connections between areas that are often siloed, linking the shape of finance for example, to the challenges in the real economy: “It is not only by creating more finance—filling financial ‘gaps’––but by shaping that finance to be long term and more directed.”

In the discussion paper, aimed at raising the bar for the G20, Professor Mazzucato argues that the current global economic system faces multiple interconnected challenges that require coordinated action. Rising costs of capital and high levels of debt distress severely limit the ability of many countries to invest in climate adaptation and green transformation. Meanwhile, biodiversity loss accelerates, and inequality continues to grow both within and between nations. 

In this context, the discussion paper argues for fundamental changes to how economies function and how finance flows. It is also significant that in a time of geopolitical stress, the President of South Africa has recently co-authored an ambitious statement of intent with President Pedro Sanchez of Spain and President Lula da Silva of Brazil calling for nations to "join forces to overcome global challenges" and stating that "2025 will be a pivotal year for multilateralism" with the three major global gatherings–G20 in Johannesburg, COP30 in Belem, and FfD4 in Seville, hosted in their respective countries – offering "a unique opportunity to chart a path toward a more just, inclusive and sustainable world." 

"The principles outlined in the discussion paper provide a foundation for reorienting global economic governance toward long-term structural transformation. From Seville to Belém to Johannesburg, the road ahead offers the possibility of forging a new path—one defined by collective ambition, institutional renewal, and a multilateralism that is fit for purpose, planet, and people."

The call for action identifies four interdependent principles to reshape global economic governance:

1. Shape the Economy: Climate and development goals must be at the heart of industrial policy to direct green, inclusive growth
2. Finance for Impact: Public finance must be restructured to align financial flows with public purpose and long-term value creation
3. Rebuild the State: Capable, entrepreneurial governments are essential for economic transformation
4. Collaborate for Global Equity: New governance frameworks that prioritize equity and collaboration are needed to ensure all countries benefit from green growth

The three major global gatherings of 2025—the Fourth Financing for Development Conference (FfD4) in Seville, COP30 in Belém, and the G20 Summit in Johannesburg—must work in concert to deliver real progress. As the joint op-ed by the three presidents emphasised, "These meetings must not be business as usual: they must deliver real progress." Professor Mazzucato will contribute to this coordinated effort through her roles as Technical Expert to South Africa's G20 Presidency, member of the ad-hoc advisory council to COP30 in Belém, and as a global thought leader on economic transformation. Her involvement across these forums will help ensure that climate financing, development, and inclusive growth are addressed as interconnected challenges requiring bold, coordinated action.

The call for a new global economic consensus coincided with finance ministers and central bank governors gathering for the IMF-World Bank Spring Meetings in Washington DC, where discussions on global financial architecture featured prominently.

Read the discussion paper here: https://www.ucl.ac.uk/bartlett/ucl-institute-innovation-and-public-purpose/principles-inclusive-and-sustainable-global-economy-discussion-paper-g20