The RES Newsletter has published a feature on The London School of Economics (LSE) Growth Commission which published its final report at the end of January. The report is based on evidence taken in a series of public sessions from leading researchers, business people, policy-makers and UK citizens.
The Commission notes that the UK has major strengths, which, from 1980 onwards, helped to reverse a century-long relative decline. Amongst these advantages, they cite: the strong rule of law, generally competitive product markets, flexible labour markets, a world-class university system and strengths in many key sectors, with cutting edge firms in both manufacturing and services. These were sufficient, for thirty years after 1980, to support faster growth per capita than in the UK’s main comparator countries — France, Germany and the US.
The report argues that the UK should build on these strengths and, at the same time, address the inadequate institutional structures that have deterred long-term investment to support the country’s future prosperity. The Commissioners propose an integrated set of solutions.
Professor Tim Besley and John Van Reenen co-chairs of the LSE Growth Commission, comment:
‘Despite the current gloom, the UK has many important assets that can be harnessed to create growth, including competitive product markets, flexible labour markets, openness to foreign investors and migrants, independent regulators and a world-class university system.
‘But making the best of them and building institutional structures to support vital investments requires a bold and decisive strategy with an approach driven from the heart of government.’
‘Economic problems that have built up over many decades will not be resolved in the space of a few years. So it is vital to develop policies that look beyond the next budget cycle, the next spending review and the next parliament.
‘This is a manifesto for growth. We challenge the main political parties to form a consensus for long-run investment to achieve prosperity for our nation.’We challenge the main political parties to form a consensus for long-run investment to achieve prosperity for our nation' . Read More with links to the full report
Source: Amanda Wilman, RES Office