Tuesday, June 8, 2021

Book Review on Mission Economy- A moon shoot guide to changing Capitalism (ISBN 9780241419731) by Marianna Mazzucato

 

At the time of a public health catastrophe, the economic analysis and moral logic of  many pointed out  the  current system failure in India. It is in this backdrop that I introduce, Mission Economy A moon shoot guide to changing capitalism -  a mission of the state at the time of  crisis beautifully laid down by Prof. Mariana Mazzucato, who already  portrayed  role of state by debunking myths of  Public vs Private sector in her previous works.

The worst health crisis that India is facing today is a result of  massive state failure and the entire nation is paying a heavy price. The author is  a  professor of Economics, who associate with several  leaders, policy makers across globe which brought the mission instrument with  common good approach in economics. The mission statement is  solely  with  her  expertise of working with UN, President of  South Africa and many other incumbent leaders and economists  especially during the time of pandemic.  Mazzucato   worked as a special adviser to Giuseppe Conte, Italy’s prime minister to restructure its Post Covid economy which is a mission undertaken for addressing the challenges and a rethinking of the capitalism.

The people of the country are for want of oxygen, ICU beds, ventilators and vaccines, the state has literally failed to give free vaccination to all and to ensure the  provision of  emergency health care facilities. When  entire world is resolving the crisis of a  pandemic, a country like  India is in the state of a health emergency like never before, and we need to rethink about the role of a risk taker government as  it is  need of the hour.

In the light of above, the mission approach is illustrated  here. All governments  across globe are combating the crisis in its own way. Author  seeks an alternative solution of a mission economy which boost its private and physical and social securities to defeat the pandemic. It requires something just more than money to solve the nations problem - that is definitely a concrete structure, partnership development of both public and private sectors.

Countrywide examples include the success story of Vietnam, through public private collaboration via commercialisation of kits, later exported to Europe and the other part of the world. The state of Kerala’s mission  in combating the Nipah virus and the first wave is stated as an elegant example of successful public-private partnership. It also addressed the scenario of  U.S.A, UK by stating the government should invest in building their muscles in critical areas such as productive capacity, procurement abilities, public -private partnership etc and she vehemently argues that we have lost one way and we cannot keep making the same mistake again.

To address the SDG’s for the entire world nation and to solve various developmental challenges, we need a different approach. It is about that aspect of sharing both risk and reward, it is possible to put an end to the problems of our time. Hence  it is a rethinking of the capitalism by Mazzucato.

A ‘mission grounds’- what stands in the way of next moon shoot is the first part of the book. The  capitalism in crisis and the five myths impede the progress is eloquently pointed out in this section. Next, a ‘mission possible’ what it takes to achieve our boldest ambitions and the last is a ‘mission in action’ - good theory, good practices and seven principles of a new political economy.

The initial example used in this book  to state the mission and the purpose is “Appollo Mission”, landing a man on the moon and bring him back safely. Kennedy’s farsightedness, vision and ambition  resulted in a landmark change in the history that  affecting life on earth. The same mission-oriented approach  and partnership can solve several  societal problems the economies are facing at present. I agree the lesson from space mission can’t be replicated  to any challenge of a developing world, but a moon shot therapy can rescue a country and its people at a critical time.

Mission oriented approach can change the direction of the economy and  it can foster innovation and catalyse growth with the public private partnership. However, there is a confusion, whether the discussion is all about rethinking government or rethinking capitalism. Capitalism was in crisis even before the Covid 19 pandemic time even during the time of financial crisis. Also, the example of the authoritarian government like China and other state-run capitalist societies inefficient to great extent.

 The covid 19  crisis also revealed how shaky capitalism is. The pandemic hit hard the global production. It is at this time that countries like USA and UK outsourced so much of their resources to private agents and consultants to accelerate production.  The mission economy stimulates how government change in order to derive better outcome and how it interacts with various agents.  Although the government has spent huge amount on to keep life support to people during pandemic, still the neoliberal economics portrays  government just as a bureaucratic master which suppress the system. Thus, she  debunks the  most common myth about government and explain why new approach is inevitable to change capitalism.

At the end, Mazzucato  suggests seven key pillars to better political economy that can guide the above-mentioned approach. It includes market sharing, organisational change, long term planning, distribution and production growth, partnership and stakeholder value, participation and cooperation. Therefore, to come out of the clutches of a deep crisis, we  can think of a mission-oriented approach to provide life support to its citizens and  to  rescue  a nation struggling to breathe.

 

Amrutha Mary  Varkey  is a Doctoral  fellow at ISEC, Bengaluru. Currently working as Asst Professor at  Christ (Deemed to be) University, NCR.

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