Balancing Social and Economic Priorities for Sustainable Growth and Government Effectiveness

Implementing a modern industrial strategy requires a new social contract that balances conditions between capital and labor, public and private entities for inclusive and sustainable growth. The reliance on consulting firms like McKinsey, PwC, KPMG, and Deloitte by governments has raised concerns about infantilizing the civil service, leading to significant outsourcing and conflict of interest. While consulting can be valuable in certain areas like healthcare, the industry as a whole lacks the incentive to enhance government intelligence or provide substantial value. Governments should prioritize building internal capacities and capabilities, leveraging existing expertise within organizations like research centers instead of relying solely on external consultants for critical strategies such as climate change. Embracing risk-taking and experimentation within the public sector is essential for effective decision-making and reducing the dependency on consultants to validate government strategies.