LSE Lecture :

The London Consensus: economic principles for the 21st century at The London School of Economics and Political Science (LSE) :

Last night, I had the amazing opportunity to attend an insightful lecture on The London Consensus: economic principles for the 21st century at the Marshall Building in The London School of Economics and Political Science (LSE).

The event brought together a respected and well-qualified panel of leading economists and policymakers, including:

- Torsten Bell, MP for Swansea West

- Professor Tim Besley, Professor at The London School of Economics and Political Science (LSE)

- Professor Hélène Rey , Lord Bagri Professor of Economics at London Business School

- Martin E. Sandbu , European Economics Commentator at the Financial Times

- Professor Andrés Velasco, Dean of LSE School of Public Policy

It was chaired by Professor Silvana Tenreyro, Professor of Economics at The London School of Economics and Political Science (LSE).

The speakers explained how the Washington Consensus, which shaped economic policy for decades, is no longer suited to today’s world. Instead, the London Consensus sets out five new principles for modern economics:

- It’s not just the money: well-being is the key.

Success should be about improving people’s quality of life, not just growing the economy.

- Growth matters, but so does place.

Different countries and regions grow in different ways: strong, capable governments are essential to support this.

- Building resilience: governments as insurers of last resort.

Governments need to be ready to protect people and the economy in times of crisis.

- There is no good economics without good politics.

Good economic policy relies on strong, fair, and stable politics.

- A capable state is the essential complement for everything.

None of this can happen without effective public institutions that can put ideas into action.

It was fascinating to hear how these ideas could shape the future of economics and policymaking. I also enjoyed the discussion between Martin Sandbu and Torsten Bell, who offered interesting critiques about how realistic these principles are in practice.

I found it inspiring to see how these principles aim to make economics fairer, more resilient, and focused on improving people’s lives. Many thanks to the LSE School of Public Policy for organising such an engaging and insightful event.

Writer : Jonathan K

Editor : Jonathan K