Brazil's Bold Mission: Forging a Path to Inclusive and Sustainable Growth

Brazil is a potential beacon of hope in a world grappling with the triple crises of climate change, inequality, and technological disruption. A new report by renowned economist Mariana Mazzucato, titled "Innovation-driven Inclusive and Sustainable Growth: Challenges and Opportunities for Brazil," outlines a bold strategy for the country to transform its economy through a mission-oriented approach. This approach boosts GDP and integrates economic, social, and environmental objectives to create a sustainable and inclusive growth model.

Mazzucato's work builds on her influential framework of mission-oriented innovation policy, which emphasizes the critical role of the state in shaping markets and directing investments toward grand challenges. Drawing on public value and market shaping, the report argues for a proactive and integrative approach to economic policy, where the government actively steers the economy towards desirable outcomes.

The report identifies several pressing challenges facing Brazil, from deep-seated social and economic inequalities to environmental degradation and premature deindustrialization. However, it highlights significant opportunities, particularly in leveraging Brazil's vast natural resources and human capital. By harnessing these assets and aligning policies across different sectors, Brazil can achieve sustainable growth that benefits all its citizens.

One of the report's key recommendations is establishing a central governing body, such as Casa Civil, to oversee the implementation of missions and ensure coordination across ministries. This will help avoid policy fragmentation and ensure that different government departments work together towards common goals. Additionally, the report emphasizes the importance of state-owned enterprises (SOEs) and strategic procurement as powerful tools for market shaping and innovation.

A crucial aspect of this approach is a dynamic and adaptable public administration. The report stresses the government's need for continuous learning and innovation to respond effectively to emerging challenges and opportunities. This will require significant investments in building state capacity and fostering a culture of experimentation and risk-taking.

The report's findings resonate with the current government's initiatives, such as the Ecological Transformation Plan and the New Growth Acceleration Program (Novo PAC). These programs, which focus on green investments and infrastructure development, align well with the mission-oriented approach and offer promising avenues for achieving sustainable and inclusive growth.

Brazil's upcoming presidency of the G20 and hosting of COP30 present unique opportunities for the country to showcase its innovative policy framework to the world. By demonstrating how a mission-oriented approach can address global challenges, Brazil can inspire other nations and solidify its position as a leader in sustainable development.

However, significant questions remain. How can Brazil's historical patterns of industrialization and deindustrialization inform future policies to address economic inequality? What are the main obstacles to effective cross-ministerial collaboration, and how can they be overcome? How can Brazil's rich biodiversity be leveraged through sustainable practices and technological innovation to create new economic opportunities while addressing environmental challenges?

The answers to these questions will be crucial for Brazil to realize its full potential and achieve a sustainable and inclusive future. The mission-oriented approach outlined in Mazzucato's report offers a promising path forward. However, its success will depend on the government's ability to build the necessary institutions, foster collaboration, and embrace innovation.

Brazil stands at a crossroads with the opportunity to become a global leader in sustainable development. By embracing a mission-oriented approach and investing in its people and institutions, Brazil can chart a course toward a brighter future for all its citizens and inspire other nations facing similar challenges.

References

Mazzucato, M. (2023). Innovation-driven inclusive and sustainable growth: challenges and opportunities for Brazil. UCL Institute for Innovation and Public Purpose, Policy Report 2023/06. Available at: [UCL IIPP Brazil Policy Report](https://www.ucl.ac.uk/bartlett/public-purpose/Brazil

Kattel, R., & Mazzucato, M. (2018). Mission-oriented innovation policy and dynamic capabilities in the public sector. Industrial and Corporate Change, 27(5), 787-801.

Deleidi, M., De Lipsis, V., Mazzucato, M., Ryan-Collins, J., & Agnolucci, P. (2019). The macroeconomic impact of government innovation policies: A quantitative assessment. UCL Institute for Innovation and Public Purpose, Policy Report (IIPP 2019-06).