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Business Daily

Business Daily meets: Mariana Mazzucato

Mar 1, 2024
18:28
Snipd AI
Government dependence on consulting firms, challenges of outsourcing during COVID-19, evolution of government confidence, role in technological advancements, addressing global challenges
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Podcast summary created with Snipd AI

Quick takeaways

  • Outsourcing government brain power to private consulting firms leads to risk-averse practices and over-reliance on external expertise.
  • Lack of expertise in public services and transparency issues plague consulting firms, urging governments to invest in internal capabilities.

Deep dives

The Role of Consulting Firms in Government Governance

Private consulting firms have become increasingly influential in governing practices, leading to risk-averse civil servants and governments overly reliant on consultants. Critics, including economist Mariana Mazzucato, argue that the dominance of consulting firms like McKinsey and Deloitte is unhealthy for governance. She highlights the need for governments to invest in their own capabilities and avoid outsourcing all responsibilities.

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