Channel 4 speaks to economist Professor Mariana Mazzucato, whose new book, The Common Good Economy, argues that governments have lost sight of what the economy is actually for.

In The Common Good Economy, Mariana Mazzucato argues that modern capitalism is structurally ill-equipped to handle intersecting global crises—from climate change to deep inequality—because it relies on a flawed, reactive economic framework. Traditionally, mainstream economics treats "public goods" or "the commons" merely as tools for correcting market failures. Mazzucato contends this mindset traps governments into patching problems after the fact, rather than designing an equitable economy from the outset.

Building on her foundational work regarding the entrepreneurial state and mission-oriented policies, she proposes a radical shift: placing the common good at the very centre of economic theory and practice. She asserts that solving humanity's deepest challenges requires governments, businesses, and citizens to proactively shape markets together—pivoting away from resource extraction and individualism, and toward reciprocity and collectivism.

Crucially, Mazzucato emphasizes that how we reach these collective goals—through participatory, equitable, and transparent action—matters just as much as the goals themselves. By offering a "common good compass," she provides a rigorous manifesto for rethinking the relationship between the public and private sectors. Ultimately, she calls for transforming finance, procurement, and global governance to build a purposeful, mission-driven economy that proactively serves both people and the planet.