In this piece Dr Roshan Boojihawon emphasises the importance of implementing a long-term strategic approach to increasing good and lasting economic growth. He also highlights the indispensable role of social science research in supporting the design of the kind of strategic economic policy that can help meet this objective.
What is Good Growth without Good Strategy?
Good growth without strategy can be misleading. The idea of “good growth” seeks to shift the current economic growth paradigm by emphasising fairness, inclusivity, and sustainability. However, pursuing good growth without a strategic framework is dangerous and wasteful; merely having good intentions is inadequate for addressing complex systemic challenges such as climate change and social inequality. Without the purposeful pursuit of strategy, good growth risks becoming a nebulous notion and cannot deliver concrete and enduring outcomes. Therefore, the key question is: how do we ensure that good growth is pursued and realised through a well-structured strategic lens?
The climate risks projected for 2050 underscore the pressing need for an economic model that not only expands output but also mitigates environmental damage and enhances social well-being; however, gaps in economic policymaking in addressing these issues, so far, have been evident. Since the 1980s, UK policymakers have frequently alternated between short-term economic stimuli and reactionary policy measures that fail to address these structural challenges. Economic policies have pursued growth as an end in itself, with little regard for the distribution of benefits and lacking details on execution or long-term viability. Mazzucato’s analysis of public-private collaboration highlights this issue: when economic strategy lacks clear mission-oriented guidance, the private sector often underdelivers while the state overpays. Similarly, in 2022, the UK High Court ruled that the government’s Net Zero Strategy lacked sufficient detail to meet legally binding carbon reduction targets. The court highlighted the absence of a clear plan outlining how policies would achieve the necessary emissions reductions, emphasising the need for transparent and actionable strategies in the UK’s climate policy. Without a coherent strategy, growth initiatives can become inefficient, wasteful, and misaligned with broader societal interests.
For growth to be truly ‘good,’ it must be guided by a coherent strategy that sets, constantly aligns and refocuses economic prosperity with sustainability, equity, and resilience. To start, this requires clearly defining the government’s purpose, vision and priorities. Governments must establish transparent, relevant and measurable objectives. Goals such as decarbonising industries, addressing regional disparities, and promoting a circular economy should align with or support the aims of industrial policies and vice versa. In this process, strategy entails making tough but necessary trade-offs: ensuring that short-term economic gains do not compromise long-term environmental stability or social cohesion.
We can learn from some good examples. For example, Germany’s KfW Development Bank facilitates low-interest loans to businesses investing in decarbonisation. This initiative aligns economic growth with environmental sustainability, demonstrating how a well-structured financial strategy can incentivise positive development. The U.S. CHIPS and Science Act links government funding for semiconductor production to commitments to climate initiatives and workforce development, ensuring that public support results in enduring economic advantages rather than short-term profits. Conversely, the UK’s history with public-private partnerships (PPPs) acts as a warning. Several PPP projects were inadequately planned, enabling private companies to gain substantial profits while delivering inferior services, undermining public confidence and leading to financial inefficiencies. This reinforces the need for strategic oversight and clearly defined public benefit objectives.
A robust strategy for good growth also requires inclusive and collaborative governance. ‘Good’ economic policies cannot be isolated in silos and committees; they must be co-created through careful thinking, dialogue and listening with businesses, communities, and social scientists. Participatory policymaking integrates diverse perspectives, ensuring that the needs of marginalised communities are not overlooked. Good growth must give way to ‘good’ policymaking, which, in turn, must give way to a more democratic approach, where the next strategies for economic growth are developed with and for the people they impact.
Another pillar of a good growth strategy is evidence-based, scenario-based long-term planning. Political cycles often dominate and shape economic policies, prioritising short-term benefits and winning elections rather than achieving long-term impact. A change in mindset is necessary—one that views ‘good’ economic planning as an intergenerational commitment rather than a five-year agenda. Climate change projections and risks for 2050 are a stark reminder of why evidenced-based, long-term, scenario-based thinking is essential and possible. If policies are designed solely with the next election in mind, they will constantly miss the point, overlooking the systemic and enduring transformations needed to create a low-carbon, resilient, and inclusive economy.
To be effective, it is equally essential to support the above process with decisions based on accurate, real-time data. Social science research, economic modelling, and climate risk assessments should not be viewed as supplementary tools but as fundamental elements of policymaking. The ability to measure, analyse, and refine policies based on empirical evidence ensures that growth strategies remain agile and adaptive rather than rigid. Insights from ‘Navigating Strategic Shifts’ emphasise that economies do not operate in static environments; they are constantly influenced by geopolitical, technological, and environmental changes, and in response, so should good policy making. Therefore, good growth must be dynamic—capable of responding to emerging risks while upholding the core principles of equity and sustainability.
A final yet crucial dimension of strategic good growth is the alignment between institutions and markets. Governments, businesses, and civil society must engage in active and organised policy dialogue rather than in conflict with their purposes. Policymakers need to establish enabling environments where businesses are incentivised to invest in green technologies, ethical supply chains, and inclusive workforce development. Regulatory frameworks should not only deter harmful practices but actively foster sustainable innovation. Public and private institutions must act as proactive and coordinated partners in good growth. Collaboration between stakeholders is not optional but imperative; without it, fragmented efforts will undermine the very principles of good growth.
Ultimately, the pursuit of good growth is meaningless without it being structured, inclusive, and future oriented. As we face worsening climate risks, deepening inequalities, and technological disruptions, the issue is not whether we should pursue good growth but whether we have the strategic foundations and detailed frameworks to sustain it.
About the author
Dr Roshan Boojihawon is Associate Professor in Strategy at the Business School, University of Birmingham and a Visiting Research Fellow at the Open University Business School. He specialises in teaching Strategic Management, International management and related subjects.
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