How To Academy Podcast Mariana Mazzucato and Rosie Collington - How the Consulting Industry Weakens Our Democracy
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Mar 10, 2023 
Economist Mariana Mazzucato and collaborator Rosie Collington debunk the value of consultancies. They highlight failures in responding to challenges like climate change and COVID-19. They discuss the role of government, the drawbacks of excessive reliance on consultants, and the need for mission-oriented policy. They delve into historical context, aligning government actions with citizens' interests, and strengthening organizational capacity. They also address the impact of consulting firms in global health and the importance of transparency for driving change.
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The Big Con
- Governments are weakened by the belief that they only fix market failures, making them reactive.
- This narrative opens the door for consulting firms to step in and offer solutions, creating dependency.
Pandemic Profiteering
- During the COVID-19 pandemic, the UK government awarded an estimated £2.5 billion in contracts to consulting firms.
- Deloitte, for example, earned £1 million per day for its work on the Test and Trace program, which a parliamentary inquiry later deemed ineffective.
Historical Context
- The growth of consulting contracts in the UK began under Margaret Thatcher but accelerated under Third Way governments.
- The "steer, not row" approach of governments like Tony Blair's further embedded the consulting industry in the public sector.