This month we spoke with Institut Avant-Garde, a new french non-partisan think-tank and one of P4NE’s most recent grantees. 

What’s the story behind The Avant-garde Institute?

We founded The Avant-garde Institute in September 2023 to bridge a crucial gap we observed in our professional journeys. We both have backgrounds in administration and academia: Mathilde worked at France Stratégie, the Prime Minister’s think tank, and defended her PhD on debt defaults in the midst of the Greek crisis. Clara worked at the French Treasury during the Covid-19 crisis on the financing of the pandemic; she decided to write her PhD on the past debt instruments that were invented to face significant increases in public financing needs such as the Second World War and the Reconstruction. During those major economic crises, we both began to put our research and current events into dialogue and realised how key this interaction was. 

Throughout our careers, we noticed that the worlds of academia and decision-making don’t interact enough in France.

Throughout our careers, we noticed that the worlds of academia and decision-making don’t interact enough in France. Decision-makers often lack the time or training to engage with current research, resulting in outdated ideas influencing critical decisions. This disconnect is especially problematic when dealing with new challenges, like the increased need for public financing for the climate transition.

Conversely, researchers generate valuable insights and new economic thinking, more adapted to the current challenges, but often struggle to translate their findings into actionable policy proposals and to communicate them effectively to decision-makers. We realised that there was a missing link between research and decision-making—a role that requires understanding academic research and conveying it in a practical, accessible manner to those in positions of power. Given our dual backgrounds, we believed we were well-positioned to fulfil this role.

We realised that there was a missing link between research and decision-making—a role that requires understanding academic research and conveying it in a practical, accessible manner to those in positions of power.

Another reason for creating this think tank was the need for a multidisciplinary approach to economic questions. Economic measures that look perfect on paper can fail in practice due to sociological, political, or philosophical factors. The “yellow vest” crisis in France is a prime example: while the carbon tax works in theory, its implementation posed significant social and political risks, potentially hindering the climate transition.

We aim to support a more holistic approach to policy-making. Our scientific council, which includes experts from various fields, reflects this commitment to interdisciplinary collaboration: it gathers historians, philosophers, engineers, IPCC experts, and “Best young economist” prize laureates.

We aim to support a more holistic approach to policy-making.

Finally, we believe that addressing issues such as financing the green transition, green industrial policy, and assessing climate debt requires a European perspective. The Avant-garde Institute was born with the support of the German think tank Dezernat Zukunft, which provided initial funding and sought to create a European network of think tanks. Today, think tanks are predominantly national or Brussels-based. The European Macro Policy Network, of which we are a member, introduces a continental dimension to this landscape, fostering cooperation and intellectual unity across Europe.

…we believe that addressing issues such as financing the green transition, green industrial policy, and assessing climate debt requires a European perspective.

This initiative underscores the importance of collaborative efforts for change, despite governmental disagreements. Promoting such cooperation is essential for driving impactful, continent-wide change.

What kind of progress have you seen your work making? And towards what?

We’ve seen remarkable progress since we started The Avant-garde Institute one year ago. One of the most exciting developments is how quickly we’ve connected with ministerial cabinets, administrations, and MPs. Our times demand innovative economic ideas, and there’s a strong interest in what we offer.

 Our times demand innovative economic ideas, and there’s a strong interest in what we offer.

One of our early achievements was federating European experts to publish key reports. For instance, our report on the European elections presented concrete proposals on financing the green transition, ensuring labour force compatibility and social justice, green monetary policy tools and reforming the common agricultural policy. Some of our proposals were even incorporated into candidate programs and cited in speeches.

Another significant milestone was our comprehensive report on climate debt. We aimed to give concrete content to the term “climate debt,” translating emissions reduction commitments into a liability within an accounting framework.

We’ve also built a strong network and organised impactful events. Our end-of-year event, for example, brought together around 100 attendees, including decision-makers, academic researchers, and media representatives. During this event, we announced our secrued funding from the Laudes Foundation, welcomed a new senior team member and established our Scientific Council.

These interactions have led to concrete partnerships, such as potential new projects with the administrations and op-ed contributions. Esteemed academics and experts, as well as representatives from key governmental bodies, have shown keen interest in our initiatives.

 

What makes the work hard? Or what most gets in the way?

Political instability is one of the biggest challenges we face. It requires us to be extremely agile and flexible. For example, when President Macron dissolved the assembly, we had to immediately shift our focus from long-term projects to address the current political situation. This also prompted us to rethink our longer-term strategy to protect our work from future governmental changes, as our network had been built with the current administration.

Political instability is one of the biggest challenges we face. It requires us to be extremely agile and flexible.

In response, we quickly assembled a group of experts to analyse and debunk the far-right’s anti-ecologic and superficially social propositions. Leveraging our network of experts on a wide variety of themes such as energy, European negotiations or constitutional law, we actively participated in the debate and effectively countered these proposals. Additionally, through the European Macro Policy Network, we engaged with Italian experts to compare Meloni’s far-right agenda with the situation in France. These were very intense times.

To safeguard our work from such uncertainties, we’ve developed strategies to build resilience. This includes forming strong relationships with potential shadow cabinets, engaging more at the local level with regions and cities, and strengthening our European connections through our network in Brussels. This multi-level approach ensures we remain effective and influential, even amidst political turmoil.

We’ve developed strategies to build resilience. This includes forming strong relationships with potential shadow cabinets, engaging more at the local level with regions and cities, and strengthening our European connections

Another significant challenge is managing multiple tasks simultaneously. We have to handle media relations, management, in-depth writing, advocacy, securing long-term funding, and communication all at once. This is why financing and support from organisations like P4NE are crucial. They enable us to hire additional staff and divide the workload more efficiently.

What about the ‘new economy’ field as a whole? Where do you think the opportunities are for greater progress?

There are definitely significant opportunities and a lot of work to be done in the ‘new economy’ field. One of the major areas for progress is the financing of the green transition. In France, substantial work has been done on assessing the financing needs sector by sector. However, there’s still much to be done, particularly in evaluating potential damages, the cost of a socially just transition, and the price of necessary technological investments.

To move forward effectively, similar assessments also need to be conducted in every European country using a harmonised methodology. This would allow us to compare needs across countries accurately. Such a standardised approach is crucial if we aim to negotiate a European fund for climate, similar to the Next Generation EU initiative.

… a standardised approach is crucial if we aim to negotiate a European fund for climate, similar to the Next Generation EU initiative.

Understanding how to finance these needs is essential. This involves making strategic choices, as some investments will not be profitable. We need to determine how to distribute the financial burden across different geographical scales—European, national, and local—as well as among various stakeholders, including public entities, banks, households, and companies. Ultimately, the question is who should and can pay for these investments.

Innovation in financing tools is also crucial. Historically, significant economic shifts have been supported by innovative financial instruments. For example, during the industrial revolution and more recently, the development of financial products to support technological advancement and infrastructure projects. Developing new financial tools and mechanisms will be key to addressing the unique challenges of the green transition.

Last, industrial policies should be entirely reshaped. First, they should be envisioned as development policies, as they regroup all public interventions directly aiming at moving our economy toward a desired state. Second, they should be not only focused on manufacturing but also on services, which are predominant in the new economy. In this sense, they could be key to accelerate its development. 

One example where an industrial policy would be beneficial is the circular economy: in practice, the circular economy replaces resources with services, and therefore with people. This is one of the most essential constraints for this sector: labour costs are high relative to resource-use costs, and the transition from linear to circular is likely to mean a significant drop in productivity. To offset this loss and support the development of the circular economy, it is crucial to develop a strategy for increasing productivity in the sector through human capital enhancement, the development of technologies that complement labour and public goods investments (infrastructure). More globally, this is where progress should be made: conciliate industrial policies with a service-led development of the new economy.

To answer these questions, we need robust economic models and a well-developed political economy framework. This includes understanding the political implications of financial decisions and how to garner support for necessary investments. The intersection of economics and politics is where we believe the greatest opportunities for progress lie.

To answer these questions, we need robust economic models and a well-developed political economy framework…the intersection of economics and politics is where we believe the greatest opportunities for progress lie.

What could people in our networks do to support your work?

There are several ways readers can support our work at The Avant-Garde Institute. If you’re interested in our topics or have launched similar initiatives, we’d love to discuss these subjects in depth and explore potential collaborations.

We also need operational skills like communication, fundraising, media training, and web design. Whether you can offer advice, volunteer your time, or provide training, your expertise would greatly help us improve our outreach and effectiveness.

We’re eager to learn about effective policy tools from abroad that could be applied in France. If you have case studies or experiences related to financing the green transition or implementing industrial policy tools, please share them with us. These insights can help us adapt successful models to the French and European context.

Share our reports, articles, and events with your networks to raise awareness about our work – you can subscribe to our bimestrial newsletter to be in the know.

Financial support is always welcome. Contributions enable us to hire additional staff, conduct in-depth research, and expand our projects. Let us know if you are aware of funding opportunities or can contribute directly.

Lastly, participate in our events and bring others along. Whether it’s a debate, workshop, or presentation, your participation helps create a vibrant community of engaged and informed individuals.

By supporting us in these ways, you can help The Avant-Garde Institute continue to advance innovative economic ideas and contribute to the crucial work of financing the green transition and promoting sustainable policies. Your involvement and support can make a significant difference in achieving our goals.

 

mathilde viennot from institut avant-garde
Mathilde Viennot

Vice President and Co-founder, Institut Avant-Garde

Clara Leonard

CEO and Co-founder, Institut Avant-Garde

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