Report Outlines Economic Path For Brazil

University College London

A new framework for the State of Brazil to achieve its goals of economic development while prioritising decarbonising the economy and tackling hunger, extreme poverty and inequality, has been published by researchers at UCL.

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Published by the UCL Institute for Innovation and Public Purpose (IIPP) as part of a collaboration with Brazil's Ministry of Management and Innovation in Public Services (MGI) and supported by Open Society Foundations (OSF), the report outlines an agenda for the transformation of the country's economy.

It emphasises a 'whole-of-government' approach involving partnerships between government and the private sector to achieve its sustainability and inclusive growth 'missions'.

To achieve the government's missions of decarbonising the economy and tackling hunger, extreme poverty and inequality, the report recommends a number of changes for the Government of Brazil to implement, touching on government purchasing, state-owned enterprise regulations and digital infrastructure development.

The report emphasises that public procurement, often seen just as a tool for buying the lowest cost products and services, can be a strategic tool by the government for reshaping an economy to align with its policy goals.

In addition, the report highlights also that state-owned enterprises - economic entities that are owned by the government but operate independently - play a major role in the Brazilian economy, and can be likewise aligned to help deliver the government's missions.

The researchers also recommend that further development of the country's digital public infrastructure should prioritise principles and missions that steer and shape the economy towards collective public goals.

Lead author Professor Mariana Mazzucato (UCL Institute for Innovation and Public Purpose) writes in the preface: "The Government of Brazil has signalled its intent to advance sustainable and inclusive growth. In doing so, it has the opportunity not only to improve outcomes for the people of Brazil and for the planet; but also, to demonstrate to other countries globally what it means to bring economic, social and environmental goals into alignment.

"The government has set in motion a potentially transformative economic agenda through its mission-oriented new industrial strategy, ecological transformation plan and other initiatives. But to realise the potential of these initiatives, an equally ambitious agenda of state transformation is needed."

The report was published as part of Brazil's Public Procurement and Development Week held in Brasilia which brings together experts and representatives from organisations and foreign governments around the world.

As part of their visit to Brasilia, Professor Mazzucato and her team co-hosted an interministerial workshop with the Ministry of Management and Innovation in Public Services to inform Brazil's forthcoming National Strategy for Public Procurement for Sustainable Development, drawing on the report's recommendations.

Brazilian Minister of Management and Innovation, Esther Dweck, writes in the preface: "Our partnership with the UCL Institute for Innovation and Public Purpose (IIPP) is timely. The Institute has been instrumental in building state capabilities in various countries, and Brazil is no exception. It has fostered the mission-oriented coordination of efforts across different government entities and design of partnerships with the private sector that are able to catalyse innovation and intersectoral economic development."

The report was developed through a lengthy series of interviews and workshops involving stakeholders from the government, academia, the private sector and civil society and led by Professor Mazzucato.

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