Close
Driving economic change across Latin America and the Caribbean
2 November 2022
Government leaders across Latin America should take a ‘mission-oriented’ approach to tackling economic, social and environmental problems, finds a new report by Professor Mariana Mazzucato (UCL Institute for Innovation & Public Purpose – IIPP).
In her report for the United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC), Professor Mazzucato defines a ‘mission-oriented’ approach as putting clear, bold, ambitious but achievable ‘missions’ at the heart of government economic vision.
She calls for a radical shift from traditional economic development models, underlining the need for structural reform to address falling productivity rates, economic challenges and low financial resilience.
The publication of the report comes as countries around the world feel the effects of the cost-of-living crisis and war in Ukraine. ECLAC data shows that GDP for this year is predicted to fall to 1.8%, having rebounded after the Covid-19 pandemic to 6.8% in 2021. From 2019 to 2021, the poverty rate increased from 28% to 30% and is predicted to continue to rise to 33% for 2022. The proportion of those in extreme poverty is predicted to rise to 14.5%.
Professor Mariana Mazzucato said: “Transforming these structural challenges into structural opportunities for inclusive growth, sustainable development and shared prosperity is what this report is about. It is a question of not only talking about the rate of economic growth but crucially also about its direction.”
The report lays out points to address the deep structural economic challenges facing the Latin America and Caribbean region (LAC).
For LAC, government leaders taking the mission-oriented approach to industrial strategy should adopt a sense of urgency and purpose to drive innovation. Recommendations include developing a new way of working between the state, business, labour and citizens. Governments should also invest in and build on their public sector capabilities to improve social participation and democratise innovation.
The report was launched at the ECLAC Annual Sessions in Buenos Aires on the 25th October, where the region’s leading policymakers and politicians met to chart the future of Latin America and the Caribbean.
Jose Manuel Salazar-Xirinachs, Executive Secretary of ECLAC, said: “The history of the region’s development shows that market forces alone cannot solve the problems of growth, investment, employment and poverty. That is why it is more important than ever to harness the opportunity that this moment in time offers: formulating and implementing policies aimed at productive transformation and diversification and that would contribute to social inclusion and environmental sustainability.”
Video
Links
- Transformational change in Latin America and the Caribbean: A mission-oriented approach
- Professor Mariana Mazzucato's academic profile
- UCL Institute for Innovation & Public Purpose
- The Bartlett, UCL Faculty of the Built Environment
Image
- Professor Mazzucato at the report launch in Argentina. Credit: UCL IIPP
Source
Media contact
Kate Corry
Tel: +44 (0)20 3108 6995
Email: k.corry [at] ucl.ac.uk
Follow us
