Mazzucato, Mariana (Ed). (2025) State Transformation in Brazil: Designing public procurement, state-owned enterprises and digital public infrastructure to advance sustainable and inclusive growth. (UCL Institute for Innovation and Public Purpose (IIPP) Policy Report 2024/15 ). UCL Institute for Innovation and Public Purpose (IIPP): London, UK.

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Abstract

The Government of Brazil has committed to a model of economic development that prioritises decarbonising the economy, along with tackling hunger, extreme poverty, and inequality. Its agenda of economic transformation – which is being advanced through initiatives such as the Ecological Transition Plan, the New Growth Acceleration Plan, the mission-oriented New Industrial Policy, and the Climate Plan – is deliberately bringing economic, social, and environmental priorities into alignment. However, realising its full potential requires a parallel agenda of state transformation, to empower the public service to successfully direct growth and shape markets that work for the people of Brazil and for the planet. The success of the government’s economic agenda will require a whole-of-government, cross-sectoral approach oriented around achieving shared goals, or “missions”, enabled by partnerships, capabilities, tools, and institutions that are fit for purpose. This report explores the design and governance of public procurement, state-owned enterprises (SOEs), and digital public infrastructure (DPI) as central elements of the government’s wider agenda of state transformation. This report is based on a partnership between the UCL Institute for Innovation and Public Purpose (IIPP) and Brazil’s Ministry of Management and Innovation in Public Services (MGI).

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