Mariana Mazzucato on the Importance of Culture in the Green Transition

Mariana Mazzucato, an Italian-American economist and director of University College London's Institute for Innovation and Public Purpose, has long argued that governments should actively shape economic growth. In her latest book, The Common Good Economy, she provides a compass for navigating towards economies that work for everyone. Now, she is turning her attention to an overlooked aspect of climate strategy: culture.

## The Role of Culture in the Green Transition Mazzucato explains that the current approach to climate solutions is not working because it is disconnected from the core of capitalism and the direction of economic growth. She argues that culture, wellbeing, joy, and human flourishing are the point of the economy, and that economic tools should be structured to deliver these outcomes. According to Mazzucato, culture needs to be integrated into industrial policy, not siloed off, and that art, local ritual, and creative practice are as important to a green transition as power grids.

## The Importance of Community Participation Mazzucato emphasizes the need for community participation in the green transition, citing the example of the US autoworkers' strike, where the voices of workers themselves pushed for good jobs in the electric vehicle industry. She argues that technocratic plans fall short without community participation and that public institutions need the ability to design and implement policy for an economy that serves people. Mazzucato also highlights the need to ensure that AI does not increase inequality and that its development is aligned with the common good.

## The Need for a New Economic Order Mazzucato argues that the economic order is already broken and that we need to build something different in its place, one that works for people and the planet rather than perpetuating inequality and extraction. She calls for a bold approach to shaping the economy, financing for impact, building capable states, and forging collaborations for global equity. Mazzucato also emphasizes the need for a new global financial and debt architecture, citing the Bridgetown Initiative led by Barbados PM Mia Mottley as a potential solution.

## The Challenge of Implementing a Green Transition Mazzucato notes that governments are often more interested in launching new plans than maintaining existing ones and that we need to co-create the right plan and stick with it. She argues that it's not just about the money, but how that money is channelled and who benefits. Mazzucato also highlights the risk of repeating the damaging extractive model of the fossil fuel era and the need for greater coordination to prevent geopolitical bullying and a race to the bottom on standards. Ultimately, Mazzucato argues that a green transition must be people-centric and that culture, community participation, and a new economic order are essential to achieving this goal.