**Brazil**: A report by economist Mariana Mazzucato provides strategies for enhancing Brazil’s public procurement and digital infrastructure, key to achieving sustainable economic growth and addressing social inequality while aligning with government initiatives like the Ecological Transition Plan.
A recent report led by economist Mariana Mazzucato outlines key strategies for Brazil to enhance its public procurement, state-owned enterprises, and digital infrastructure in pursuit of sustainable and inclusive economic growth. Mazzucato, who holds a professorship in economics of innovation and public value, as well as serving as the founding director of the Institute for Innovation and Public Purpose (IIPP) at University College London, has been collaborating with Brazil’s Ministry of Management and Innovation in Public Services since 2023 to implement a mission-oriented government approach. This model emphasises the role of governments in actively shaping markets to address significant societal challenges.
The report comes amid Brazil’s ongoing efforts to achieve economic development that aligns with environmental sustainability and social equity, through initiatives such as the Ecological Transition Plan, the New Growth Acceleration Plan, the New Industrial Policy, and the Climate Plan. These initiatives highlight the Brazilian government’s commitment to decarbonising the economy while simultaneously addressing social inequality.
The IIPP report notes that the government’s current economic transformation agenda is aimed at synchronising economic, social, and environmental objectives. However, it asserts that unlocking the full potential of these initiatives requires a parallel transformation of state capabilities. This involves empowering public services to steer growth effectively and establish markets that serve both the Brazilian populace and the planet.
In outlining its recommendations, the report identifies the need for Brazil to refine its procurement strategies, focusing on outcomes rather than processes, and to bolster coordination across government departments to align expenditure with national objectives. A key suggestion is the establishment of a framework for defining and measuring the public value of procurement to encourage policy-aligned purchasing decisions. Furthermore, the report advocates for improved strategic coordination of state-owned enterprises, proposing either an overhaul of an existing interministerial body or the creation of a new entity to oversee this.
The report addresses the significance of ‘digital public infrastructure’, emphasising that foundational digital systems should be driven by public good principles and scalable through local experiments. For instance, the Rural Environmental Registry has been cited as an effective measure to monitor deforestation and support sustainable agro-industrial practices, thereby aligning with Brazil’s stated priorities as set out in the New Industrial Policy and the Ecological Transformation Plan.
Esther Dweck, Brazil’s minister of management and innovation in public services, highlighted the challenges faced by civil servants during the foreword of the report. She remarked, “The current generation of civil servants faces a historic challenge: building a state with the capacity to provide agile responses to the multiple crises we face while ensuring it remains – as it always has throughout history – the guiding force and pillar of national development.”
Dweck further articulated that the report signifies a noteworthy advancement in Brazil’s quest for a just, digital, and sustainable future, where collaboration between the public sector and private sectors is paramount for development and prosperity. The report concludes by suggesting that should Brazil maintain an ambitious agenda for state transformation on par with its economic and ecological reforms, it could serve as a model for countries globally in aligning economic, social, and environmental policies.
The IIPP’s focus on Brazil coincides with similar mission-driven strategies being adopted by other nations, such as the UK. Recently, Prime Minister Keir Starmer’s Labour government has outlined its agenda focused on five national missions, including stimulating economic growth and establishing Britain as a clean energy superpower.
An examination by Global Government Forum from last year reveals critical elements integral to a modern and effective civil service. It underscores the necessity for collaborative frameworks that overcome traditional organisational barriers, advocating for strong central oversight, integrated decision-making processes, sufficient resources, and a long-term perspective that withstands the fluctuations of political cycles. One civil service leader articulated the challenge of collaboration, noting the disconnect between horizontal issues and vertical organisational structures.
As Brazil navigates its transformative efforts, the recommendations from Mazzucato’s report and the broader civil service insights are central to shaping a government capable of addressing contemporary challenges effectively.
Source: Noah Wire Services
Subscribe to Industry Updates
