Paper by Mariana Mazzucato and Rainer Kattel: “Public value is value that is created collectively for a public purpose. This requires understanding of how public institutions can engage citizens in defining purpose (participatory structures), nurture organisational capabilities and capacity to shape new opportunities (organisational competencies); dynamically assess the value created (dynamic evaluation); and ensure that societal value is distributed equitably (inclusive growth).Rainer KattelMariana Mazzucato and Public value is value that is created collectively for a public purpose. This requires understanding of how public institutions can engage citizens in defining purpose (participatory structures), nurture organisational capabilities and capacity to shape new opportunities (organisational competencies); dynamically assess the value created (dynamic evaluation); and ensure that societal value is distributed equitably (inclusive growth).
Purpose-driven capitalism requires more than just words and gestures of goodwill. It requires purpose to be put at the centre of how companies and governments are run and how they interact with civil society.
Keynes claimed that practitioners who thought they were just getting the ‘job done’ were slaves of defunct economic theory.1 Purposeful capitalism, if it is to happen on the ground for real, requires a rethinking of value in economic theory and how it has shaped actions.
Today’s dominant economics framework restricts its understanding of value to a theory of exchange; only that which has a price is valuable. ‘Collective’ effort is missed since it is only individual decisions that matter:
even wages are seen as outcomes of an individual’s choice (maximisation of utility) between leisure versus work. ‘Social value’ itself is limited to looking at economic ‘welfare’ principles; that is, aggregate outcomes from individual behaviours…(More)”
