The Common Good Economy; How to Make Capitalism Work for Us All, Mariana Mazzucato, 2026
Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. – John Maynard Keynes (1883-1946) The General Theory of Employment, Interest and Money (1936-1973) Also quoted by Susan Neiman in Call It Evil; Understanding the Trump Era 2026.
The book gives a brief summary of key enlightenment figures Thomas Hobbs, John Locke, Jeremy Bentham, David Hume, and Adam Smith, Hegel, Marx, Engels, and John Stewart Mill:
By the late nineteenth and early twentieth centuries, the emphasis on individual freedoms had consolidated into a dominant liberal framework, placing individual autonomy and self-interest at the center of political thought… Mill (1859) championed individual autonomy, resisting the authority of moral or religious communities that sought to impose goals on others. Similarly, (John) Rawls (1971-1993) maintained that the state should remain neutral among competing conceptions of the good life, focusing instead on securing the freedoms and opportunities necessary for individuals to pursue their own well being without coercion…Rawls derived two principles of justice. The first guarantees equal basic liberties for all citizens including freedom of speech, conscience, and the rule of law. The second, known as the difference principle, permits social and economic inequalities only if they benefit the least advantaged and arise within a context of equality and opportunity.
In a section entitled Lessons on collective intelligence from biology Mazzucato highlights:
Parasitic ecosystems benefit one organism at the expense of others, whereas symbiotic or mutualistic ecosystems allow all organisms to benefit while keeping each other in check. When balance in the ecosystem is disrupted by one organism becoming disproportionately powerful, the ecosystem is threatened with collapse.
Similarly forest ecologist Suzanne Simard (2022) has studied how trees communicate via underground mycorrhizal fungal networks, which she has called the ‘woods wide web’. She challenged previous work on trees that view forests as competitive environments and argues instead that trees often collaborate to support each other’s health and growth.
Scholars of the ‘collaborative economy’ study the conditions that allow communities to flourish, emphasizing community building, inclusivity, and sustainability…Relatedly, work on ‘collective intelligence’ emerging from fields such as sociology and psychology , captures the idea that people working together can solve problems better than they can individually, resulting in continuous experimentation and innovation…Moreover, this intelligence is even greater when there is social diversity, as a growing body of research has shown that diverse groups make better decisions.
In philosophy, this narrow (Eurocentric) view obscures the fact that profound philosophical traditions around the common good have long existed outside the West, including Confucianism in East Asia, Islamic philosophy across the Middle East, Ubuntu in sub-Saharan Africa, Buddhist and Hindu thought in South Asia, and the diverse worldviews of Indigenous peoples across the Americas, Oceania and beyond.
Linux was created in 1991 by Linus Torvalds while he was a computer science student at the University of Helsinki in Finland because Bell Lab’s originated Unix based computers were too expensive. Linux is open source and became the default operating system chosen as Internet servers were globally deployed. Today’s Linux’s descendant is Ubuntu, also open source and attracting large numbers of open source applications. This blog was written on an Ubuntu laptop.
Many Indigenous worldviews understand the self as emerging from relationships with community, the land and the spiritual world, rather than as something defined in isolation…By rejecting this separation, Indigenous communities view the individual and the collective as mutually sustaining, reflecting a more holistic understanding of the interdependence of the social, ecological, and spiritual dimensions that sustain life.
For example, in Ecuador, the Quechua concept of sumak kawsay – translated into Spanish as buen vivir ‘good living’ – reflects a worldview (cosmovision) in which the good life is not achieved through individual accumulation or consumption, but through harmony with nature and collective coexistence. Ecuador formally updated its Constitution in 2008 to incorporate buen vivir as a foundational principle of national development and governance.
A major advance in social economics came with Amartya Sen’s capability approach (1979). This framework shifts the focus from utility-based welfare to what individuals are actually able to do and be — what Sen calls ‘functionings’. Functionings encompass basic conditions such as nutrition and health as well as more complex aspects like self-respect and meaningful participation in community life. An individual’s ‘capability set’ — the range of functionings they can achieve — reflects their freedom to pursue a life they value, shaped by both personal characteristics and broader social, economic and institutional conditions.
Communitarian, biological and Indigenous perspectives reveal that individuals do not exist in isolation, but within interdependent social and ecological networks. Identity, wellbeing, and even generation of value in the economy are inseparable from these relationships. This challenged the idea of value as something produced only be individuals and instead points to collective value creation, in which markets are shaped by shared institutions and common objectives.
The distinction biologists draw between symbiotic and parasitic ecosystems provides a useful analogy for rethinking economics. A symbiotic economy requires attention to the quality of relationships which are shaped and governed through a wide range of mechanisms such as property rights, water rights, intellectual property, and data flows. These underlying arrangements determine whether economic systems foster cooperation or enable exploitation.
Much of mainstream economic thought has ignored such interdependence, treating humans as isolated agents and markets as neutral mechanisms. This perspective leaves little room for the social and ecological dimensions of value creation and confines collective action to addressing failures after they happen. By focusing on the way relationships are structured from the start, both within communities and with nature, we open the possibility of shaping our economy to actively advance the common good.
By contrast, former US Secretary of Labor Robert Reich (2018) in his book The Common Good, explores the idea of the common good in relation to what he believes to be the erosion of shared values and mutual obligations in American society. He argues that the historic US commitment to the common good — stemming from the Declaration of Independence and the US Constitution, and expressed through ideals such as the rule of law, democratic institutions and a commitment to truth — began to erode in the late 1970s. He perceives three major structural breakdowns have driven this shift; the degradation of political into partisan competition, the retreat of corporate responsibility in favor of shareholder primacy, and distortions within the market that encourage exploitation over fairness. Together, these dynamics have weakened public trust, accelerated economic inequality and shifted attention away from collective wellbeing towards private gain.
To restore the common good, Reich calls for a renewal of civic life grounded in trusteeship, where leaders see themselves as stewards of the common good. He emphasizes reclaiming the social use of honour and shame to condemn corruption and celebrate virtue, rebuilding a culture of truth telling in public life, and reviving civic education to instill responsibility and democratic values in future generations. In doing so, he envisions a society in which the common good once again guides the collective. Yet, like the communitarians, Reich does not provide a framework for ensuring that the common good actively shapes how the economy operates at its very core: the role of business, the role of government policy beyond fixing markets, and how the two interrelate.
A common good economy requires embedding economic objectives with the fabric of social relationships and rethinking how all actors — individuals, public institutions and private firms — relate to one another. This demands removing it from a notion of market failures; it must instead be about how to shape markets and the economy, putting the common good at the centre of all economic relationships. And it also cannot be about non-market activities. It must go to the centre of economics and markets work. A common good framework for the economy is about aligning goals, incentivizing collaboration, fostering collective intelligence, and ensuring that all participants share knowledge, risks and rewards. It moves beyond treating markets as neutral arenas for individual maximization, aiming instead to design systems that actively cultivate cooperation and shared wellbeing to make the common good possible.
To create a new economics of the common good, we must thus shift away from a focus on maximization exercises towards collective value creation, where interactions between business, governments and other organizations are viewed not as mere transactions but as relationships to be guided through principle of reciprocity.
By understanding the role the state played in forcing markets into existence, we understand that there are no deterministic market laws, but rather markets are outcomes of governance decisions. Similarly, Evans (1995) concepts of ’embedded autonomy’ show how states actively organize and stabilize markets through structured engagement with firms while retaining independence.
Market shaping can lead to more inequality, if the state is working for the interests of capital, as Marx argued. Or it can lead to more pollution, depending on the governance of companies, as well as the tax system. The question then becomes how to have the kind of government policy and governance structure that shape markets to create a more inclusive and sustainable capitalism. Outcomes orientation in this view means that instead of just viewing the bad things that arise in the economy as ‘externalities’ we can better understand how those bads are produced by the way markets work even in ‘perfect’ form, indeed through the very logic of the market.
In her book The Code of Capital, Katharina Pistor (2019) talks about how inequality is coded in the law. Without un-coding, inequality remains. Marx insisted that capital was a social relationship, based on capital exploiting labour. Pistor argues that capital isn’t a natural or physical thing, but a legal construct crafted through what she calls ‘legal coding’; the selective deployment of legal tools (property rights, contracts, trusts, and bankruptcy law) that give an asset priority, durability, universality and convertibility, enabling it to generate wealth and be enforced globally. Private lawyers act as the architects of this code, deliberately shaping financial instruments, corporate structures and even intangible assets to concentrate wealth among the legally sophisticate, perpetuating inequality across countries and generations.
Unless these legal frameworks are unraveled, it is nearly impossible to change the rules of the game that produce inequality and disempowerment. Attention to legal relationships must be matched by attention to all relationships at the interface between public and private sectors, from property rights to procurement contracts to bailout schemes. Only be redesigning these structures can we begin to foster the mutualistic ecosystems necessary for an economics of the common good.
If businesses are wed solely to maximizing shareholder value, then we get specific market outcomes: a fictionalized economy where what matters most are quarterly returns and stock prices…But if we build corporate models that genuinely align long term success and value creation with social and environmental value, businesses can become powerful engines for good growth.
“Global economy watchers have inundated the internet with historical parallels for the triple financial bubble at hand, inflated by hopes and dreams for artificial intelligence and cryptocurrencies, and previously unimaginable levels of borrowing.” World Economic Forum Nov 2025
Over the past forty years or so the stock market has become increasingly decoupled from the real economy. The growing size of the financial sector and that financialization of our economics point to the need to reduce finance’s share of the economy, while making sure that the finance that exists truly serves it.
Furthermore, finance is often very short term, making trillions from millisecond trades that are just about buying and selling existing assets instead of creating new ones.
Of all the vaccines produced during the (Covid 19) pandemic, only one embodied an outcomes-oriented approach in the design of the public-private partnership; the collaboration between Oxford University and AstraZeneca (sometimes referred to as ‘Vaxzevria’). In this model, early stage developments by Oxford were transferred to AstraZeneca for final development, manufacturing and distribution. Within this arrangement, the UK government embedded conditionalities in the Vaxzevria Supply agreement, requiring vaccines to be delivered at cost. As stated in the Agreement: ‘AstraZeneca shall use Best Reasonable Efforts to mitigate and reduce the Cost of Goods during the Term of this Supply Agreement. These terms significantly enhanced the UK government’s ability to guarantee vaccine access for all UK citizens.
After the pandemic, different attempts were made to learn the lessons on how make sure Global South countries are able to produce their own vaccines: for example, the creation of the mRNA Vaccine Technology Transfer Program. Its main purpose is knowledge sharing to increase the capacity of the Global South countries to produce their own vaccines. By distributing technology across multiple production sits in the Global South, the programme seeks to decentralize and diversify mRNA vaccine manufacturing, counter extractive intellectual property practices, and ensure that early-stage, high-risk public funding is conditional on knowledge sharing and equitable access.
Another example of knowledge sharing is the International Treaty on Plant Genetic Resources for Food and Agriculture often referred to as the Seed Treaty. Established by the UN Food and Agriculture Organization and adopted in 2001, this global agreement created a multilateral system for the sharing of plant genetic materials crucial to food security and sustainable agriculture. The Seed Treaty enables countries to freely access a pool of over sixty important food crops and forage plants, including staples like rice, wheat and maize, which have been cultivated, bred and improved upon over centuries by farmers across the globe.
From a common good perspective, the Treaty represents a shift in governance from a system based on ownership and enclosure to one based on stewardship and reciprocity. It reflects the co-creation and participation we discussed in the previous chapter, ensuring that smallholder farmers and Indigenous communities – who are often the original custodians of these genetic resources – are included in decision-making and benefit-sharing processes. Moreover, it promotes transparency and accountability, the final element of the common good compass, in how plant knowledge-sharing agreements, when designed around public purpose, can reshape economic incentives and legal norms toward more inclusive, sustainable outcomes. It also reinforces the point that innovation ecosystems should not only produce technological progress but must also institutionalize fairness in access and distribution – something that the Seed Treaty operationalizes through international law.
Digital Public Infrastructure (DPI) – a layer of infrastructure that sits above hardware and internet protocols and underpins the functioning of modern markets and societies – is emerging as the defining features of this century, like roads, electricity and water systems. DPI forms the backbone of our collective life. For much of the past two decades, the digital agenda had focused narrowly on service delivery, administrative efficiency and enabling private sector innovation. But today, DPI is increasingly recognized as the ‘railways of a digital economy’ – a shared infrastructure that connects people, supports the delivery of essential services and rights – and promoted inclusion.
What is needed is a clearer understanding of what constitutes public value in the context of DPI and how that value is intentionally created and sustained. Without this framing, it is impossible to ensure the transparency and accountability of the most important technological changes of the twenty-first century.
Two lenses are commonly used to assess DPI’s public value creation: attributes and functions. Attributes refer to the technical features that make infrastructure scalable, flexible and open – such as interoperability, modular design and open source code. These features support dynamic efficiency and reduce fragmentation across digital ecosystems. Functions, on the other hand, refer to the roles DPI plays in society; fostering community and social relationships, enabling economic activity, guaranteeing essential capabilities and enhancing overall quality of life.
While both are important, they are not sufficient. A system can be technically open and functionally useful yet still fall short of advancing public goals or being governed in ways that promote the common good. Instead, a third lens is needed: the common good elements discussed in this book, which focus not only on outcomes but also on the processes and institutional arrangements through which value is shaped, distributed, and sustained.
Collective learning and knowledge sharing imply that DPI should be conceived of as a site of continual experimentation and feedback. Open source platforms such as the Modular Open Source Identity Platform (MOSIP) enable global collaboration and localize adaptation. By supporting shared infrastructure that evolves through distributed contributions, such models institutionalize collective intelligence and align innovation with long-term public value.
For Instance, the Bezos Earth Fund, established by Jeff Bezos has made important investments in climate adaptation. Yet the fund is funded by wealth generated through deeply problematic business practices. Amazon, the company Bezos owns, has relied on tax avoidance and labour exploitation to accumulate massive profits, while also producing 68.25 million metric tonnes of CO2 in 2024 – comparable to a mid-sized European country – and its carbon footprint is expected to grow further due to its AI data centres. While philanthropic initiatives like the Bezos Earth Fund provide some support for addressing climate change, they cannot offset the harm caused by the company’s core business practices.
The World Bank’s Mission 300, which aims to provide electricity to 300 million people in Africa by 2030, combines public and private investment to expand power generation and transmission, scale up decentralized renewable solutions such as mini grids, and improve affordability and regional integration. It also emphasizes community empowerment, particularly for women, by enable access to clean energy and productive uses that foster local enterprise.
In many ways, Mission 300 aligns with several principles of the common good compass. It promotes co-creation through collaboration with governments and local partners, supports collective learning via open data and shared platforms, and seeks fairer reward sharing by linking investment to social outcomes rather than short-term returns. It also emphasized accountability and transparency through public reporting and feedback mechanisms, indicating a move towards more participatory governance.
These considerations are important for thinking about how to govern artificial intelligence (AI) around common good principles. A technological breakthrough of epochal proportions, AI could and should be used for the common good. The uncomfortable truth, however, is that it is quickly going in the wrong direction. It depends on access to the gatekeeper’s cloud computing platforms. Three companies – Amazon Web Services, Microsoft Azure, and Google Cloud – control around 70 per cent of the cloud’s market share. This oligopolistic ownership structure has turned AI into a venous engine of rent extraction and a drain on knowledge from the public sector, as the private companies use their grossly excessive trillionairs incomes to lure top talent away from public labs, universities and the public service with very high salaries. Meanwhile, data privacy is being breached, misinformation is rampant, and the divide between unskilled and skilled labour is widening. AI platforms also consume enormous amounts of energy, water and minerals, exacerbating climate change, the water crisis and other environmental challenges.
Yet, like previous technological revolutions, today’s AI breakthroughs, from voice recognition to large language models were built on the shoulders of public investments. AI models are largely trained on the creative work of writers, singers, artists, journalists, illustrations and more whose creations are used without permission, and who almost always receive no compensation. Simply tightening copyright protections, as many critics have proposed, will in and of itself be insufficient to correct this dynamic. We should instead treat collective knowledge in the age of generative AI as a common good and collectively fund (and benefit from) its production. Like clean water or vaccines, the creative commons should be accessible to everyone, with risks and rewards equitably distributed among all actors.
AI is still in its infancy, though developing fast. Nobody can truthfully say what direction it will take or what its impact on society will be. We can say, however, that the best approach to AI governance would be to design a public-oriented structure that embodies the five elements of the common good compass to steer AI innovation towards public value creation..
First, AI development should be guided by a clear public mission to advance collective wellbeing, social justice and environmental sustainability, rather than serving the short-term profit motives of a few dominant corporations. This mission must be pursued through co-creation and participation involving public institutions, universities, civil society, citizens and workers across sectors. Such collaboration would ensure that the design deployment and regulation of AI reflect diverse perspectives, public needs and democratic accountability, rather than being shaped exclusively by private commercial interests.
Knowledge sharing and open access to data, models and research should replace the current reliance on secrecy and excessive patenting. AI advances funded by public resources should remain open and interoperable, allowing for collective learning and the diffusion of innovation across the public and private sectors. Moreover, risk and reward sharing must be embedded into the AI ecosystem to ensure that value generated from collective inputs benefits society as a whole. AI should be publicly supported with clear conditionalities so that outputs remain in the public domain and serve public purposes.
Finally, transparency and accountability must underpin all aspects of AI governance. Independent oversight bodies, open metrics and publicly accessible evaluation frameworks would make it possible to track AI’s social, environmental and ethical impacts, challenge failures, and hold both public and private actors to account.

































