The Big Con

Starred review from January 2, 2023
Multinational consultancies, including McKinsey & Co., Boston Consulting Group, and PwC, have co-opted government operations to suit their own business models, according to this immersive and exhaustive study by economists Mazzucato (Mission Economy) and Collington. Noting that the neoliberal “Third Way” embraced by leaders including Bill Clinton and Tony Blair held that governments should “steer more, row less,” Mazzucato and Collington show how public services came to be outsourced to private firms. Consultants and contractors won governments’ confidence by placing experienced public sector veterans in management roles and recruiting eager Ivy League grads to do the legwork. Dazzling PowerPoint presentations and quasi-academic in-house studies enhanced consulting firms’ credibility, despite such failures as the disastrous launch of the Affordable Care Act’s enrollment website, HealthCare.gov. Even more disturbing are studies suggesting that consultancies are actively working against the public interest by simultaneously serving fossil fuel companies while advising governments and corporations on their climate change policies. Among other direct and persuasive solutions, the authors suggest the enhancement of conflict of interest disclosure requirements and empowering public sector organizations “to take risks.” Doggedly researched and elegantly written, this is a fascinating entry point into a critical yet underreported issue.