Report by G7 Economic Resilience Panel demands new social contract between public and private sector
13 October 2021
G7 Panel on Economic Resilience calls for step-change in global governance to build forward better and increase resilience from economic shocks.
The G7 Panel on Economic Resilience has today (13 October 2021) published its final report titled ‘Global Economic Resilience: Building Forward Better’. Proposals set out in the ‘Cornwall Consensus' aim to provide an updated approach to the landmark Washington Consensus to reflect the opportunities and challenges of the mid 21st century, covering global supply chains, vaccine distribution, access to critical minerals, cyber threats, digital tax, crypto-assets and the transition to green growth. It also examines the broader underlying issues that can erode the stability of the global economy.
The Panel consists of eight authoritative experts appointed by G7 Leaders, including UCL IIPP's Founding Director, Professor Mariana Mazzucato. The panel is chaired by the Prime Minister’s G7 Envoy for Economic Resilience, Lord Sedwill, who presented the Panel’s initial set of recommendations to G7 Leaders at the Summit in Cornwall in June.
The report presents a roadmap for the ‘Cornwall Consensus’ which sets out seven priorities for public-private investment, global standards and better governance including on health and climate change, digital governance and critical supply chains. The recommendations in the report’s ‘Cornwall Consensus’ focus on a multidisciplinary approach beyond traditional economic policy levers, for consideration for G7 economies and beyond. The report aims to inform discussions at the upcoming G20 Leaders Summit and COP26 Climate Change Conference where Professor Mariana Mazzucato will be speaking with leaders representing past, present and future COP conferences about progress to-date and what needs to change.
Key recommendations from the panel include:
- Delivering vaccine equity globally, including by mobilising financing, changing the governance of innovation and intellectual property rights and the design of public-private partnerships, and empowering leaders such as World Health Organization to coordinate global efforts — putting global solidarity and the common good front and centre.
- Increasing both the quantity and the quality of investment to ensure alignment with the goals of pandemic response and recovery, and a just, green transition.
- Creating a “CERN for climate technology” - a mission-oriented research center focused on pooling public and private investments aimed at decarbonizing the economy and shaping new markets in renewable energy and circular production.
UCL Professor and Founding Director of IIPP, Mariana Mazzucato, said:
“The Cornwall Consensus requires a new deal: a revived social contract between public and private sectors—to proactively create a resilient, sustainable and equitable economy.”
Lord Sedwill, Chair of the G7 Economic Resilience Panel said:
"Globalisation has seen the greatest increase in prosperity and reduction in poverty in human history. But the 4th industrial revolution, the rise of China and environmental, economic and geo-political events have outpaced global economic governance. Economic resilience is delivered by diversification, co-dependence and public-private partnerships within well-governed, open and integrated global markets. The “Cornwall Consensus” reflects that insight and recommends investment, standards and inclusive governance to meet the challenges and opportunities of the mid 21st century."
Panel member Carolyn Wilkins, External member of the Bank of England’s Financial Policy Committee, Executive Board Member of Intact Financial Corporation and former Senior Deputy Governor of the Bank of Canada, said:
“It’s time for the G7 to come together to secure the future economic and social well-being of our citizens. Success depends on forging a new consensus that recognizes the power of solidarity, shared social values, and private-public partnership.”
Panel Member Thomas Wieser, Non-Resident Fellow, Bruegel and Former President of the Euro Working Group and the European Financial Committee, said:
"The European Union has weathered the pandemic comparatively well, but it has been a wake up call: internal and external disruptions to established ways of living, trading, travelling and producing have shown the fragility of national and global systems. The recommendations of our G7 Panel on Economic Resilience provide a clear road map towards a new socially and ecologically responsible way of global cooperation and governance of open societies."
Panel member Dr. Felicia Wong, President and CEO of the Roosevelt Institute, said:
"The global community must pivot from the failed Washington Consensus—austerity, trade liberalization as an end unto itself, and decades of corporate tax avoidance—toward something new: embracing investment, standards, and real governance to solve the collective global challenges we face, from climate change to public health crises. The trust of our citizens and the very legitimacy of our governments depend on the global economic system meeting our collective needs."
Panel member Professor Thomas Philippon, Economist and Professor of Finance at New York University’s Stern School of Business; Economic Adviser to Emmanuel Macron, said:
"The free-market, pro-growth ideas that constituted the “Washington consensus” contained much wisdom, but the challenges ahead of us – from climate change to global health – require a set of new principles to guide policy makers and foster the common good. The “Cornwall consensus” is our contribution to this ongoing effort."
Panel member Dr Stormy-Annika Mildner, Executive Director of the Aspen Institute in Berlin, Adjunct Lecturer Hertie School, and former Head of Department for External Economic Policy at the Federation of German Industries, said:
"Today’s crises are frequent, multicausal, and severe. Whether they are systemic or sudden - the approaches we are taking towards them now no longer suffice. We need the Cornwall Consensus to guide us towards a more sustainable and inclusive path of governance. The world as we know it has changed significantly over the past years – it is time our approach towards global economic governance does, too!"
The seven pillars of the Cornwall Consensus are: Global Health; Climate and Environment; Digital Governance; The Global Trading System; Investment-Focused Recovery; Labour Standards and Participation; and Supply Chains & Critical Market Fragilities.
- The full report can be found here
- Full membership of the panel and an overview of its work is available here
- The panel commissioned a report from the OECD in March 2021 to inform its work, which is available here
- G7 panel on Economic Resilience