Governments are tinkering not leading.

 Only way to solve problem is to government resolve them proactively.

 Government ideology is generally that we fix problems, not achieve bold objectives.
 Capitalization = Market mechanism driven by self interested profit maximizing indivisual or
firms. When market mechanisms fails, government must step in for correction.
 Author argues that markets are not outcomes of indivisual decision making rather how each
value creating actor is governed including government itself. For examples deregulation is a
direction that government wants to give.
 Markets are embedded in institutions and norms and are co created by public + pvt sector as
well as civil society eg. Trade unions.
 Government is just fixing things daily. This is showing in the absence, slowness and rigidity of
government. It should be an active value creator.
 Civil Servants have fear of doing of more than fixing Patches.
 Ronald Reagon: None most terrifying words in English language are ‘I am from the government
and I here to help.’ ‘Night’s watchman’
 The problem is not big or small gov, it is ‘the type of government, what it does and how?’
 Only government has the capacity to scale of changes that we need.
 Re-think cooperate governance. Changes in coorperate matrix governance ESG (Environmetal
social and cooperate governance)
 Government has no systematic directionality towards de-financialization or sustainability.
 Government must transform itself into an innovating organizationwith capacity and capability to
energize and catalyze economy to be more purpose driven.

Myth 1: Businesses create value and take risks Governments only de-risk and facilitate

 Fundamental Concept in economics: Value is uniquely created inside business.

 Governments Job: Set rules of the game, regulate, redistribute and fix market failures.
 Public institutions have lost confidence. They oursources contracts hoping to save money and
thinking that private sector is more efficient. Although its only profit driven.
 Result: High cost, poor service, capture of government contracts by small number of firms, risk
for taxpayers.
 There is no question on how businesses create value and need to make profits. The question is
how?
 The Entrepreneurial State (Mariana book) she argues that states make high risk investments
that private sectors would never make for example silicon valley, GPS (US Navy), Pharma
investments by NHS.
 Only after risk was taken by public sector. The pvt sector stepped in.