G7 report calls for social contract between public and private sectors

The G7 Panel on Economic Resilience, which Professor Mariana Mazzucato, Director of the UCL Institute for Innovation & Public Purpose (IIPP), sits on, has launched its final report titled ’Global Economic Resilience: Building Forward Better’.

The report presents a roadmap for the ’Cornwall Consensus’, providing an updated approach to the Washington Consensus, which was a set of ten economic principles advocating for free trade, floating exchange rates, free markets and macroeconomic stability.

The Cornwall Consensus, published earlier in the summer, aims to reflect the opportunities and challenges of the 21st century. It sets out seven priorities for public-private investment, global standards and better governance, including on health and climate change.

It covers global supply chains, vaccine distribution, access to critical minerals, cyber threats, digital tax, crypto-assets and the transition to green growth. It also examines the broader underlying issues that can erode the stability of the global economy.

Professor Mazzucato said: "The Cornwall Consensus requires a new deal: a revived social contract between public and private sectors - to proactively create a resilient, sustainable and equitable economy."

Lord Sedwill, Chair of the G7 Economic Resilience Panel said: "Globalisation has seen the greatest increase in prosperity and reduction in poverty in human history. But the 4th industrial revolution, the rise of China and environmental, economic and geo-political events have outpaced global economic governance.

"Economic resilience is delivered by diversification, co-dependence and public-private partnerships within well-governed, open and integrated global markets. The ’Cornwall Consensus’ reflects that insight and recommends investment, standards and inclusive governance to meet the challenges and opportunities of the mid-21st century."

The Panel’s key recommendations are:

  • Delivering vaccine equity globally, including by mobilising financing, changing the governance of innovation and intellectual property rights and the design of public-private partnerships, and empowering leaders such as World Health Organisation to coordinate global efforts - putting global solidarity and the common good front and centre.
  • Increasing both the quantity and the quality of investment to ensure alignment with the goals of pandemic response and recovery, and a just, green transition.
  • Creating a "CERN for climate technology" - a mission-oriented research centre focused on pooling public and private investments aimed at decarbonising the economy and shaping new markets in renewable energy and circular production.

The seven pillars of the Cornwall Consensus are: Global Health; Climate and Environment; Digital Governance; The Global Trading System; Investment-focused Recovery; Labour Standards and Participation; Supply Chains and Critical Market Fragilities.


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