LSE Growth Commission Book
Investing for Prosperity: A manifesto for growth
Edited by Tim Besley and John Van Reenen
£19.99 - Buy online
Why is economic growth such a rare and elusive butterfly in the UK garden? What institutions and policies are needed to sustain UK economic growth in the dynamic global economy of the twenty-first century?
After years of inadequate investment in skills, infrastructure and innovation, there are longstanding structural weaknesses in the economy, all rooted in a failure to achieve stable planning, strategic vision and a political consensus on the right policy framework to support growth. This must change if we are to meet our current challenges and others that may arise in the future.
Despite the current recession gloom, the UK has many assets that can be mobilised to its advantage. It has strong rule of law, generally competitive product markets, flexible labour markets and a world-class university system. It has strengths in many key sectors, with cutting-edge firms in both manufacturing and services. These and other assets helped to reverse the UK’s relative economic decline over the century before 1980.
This book, based on the work of the LSE Growth Commission and greatly expanding upon its first published report, argues that the UK should build on these strengths and proposes how we can address the inadequate institutional structures that have deterred long-term investment to support our future prosperity.
The book is edited by Professors Tim Besley and John Van Reenen at the London School of Economics and Political Science. It develops on the themes outlined in the Commission’s first brief report published in January 2013.
The Commissioners and contributors also include: Philippe Aghion, Lord John Browne, Francesco Caselli, Sir Richard Lambert, Rachel Lomax, Christopher Pissarides, Lord Nicholas Stern, Nitika Bagaria, Novella Bottini, Miguel Coelho, Joao Paulo Pessoa, Isabelle Roland and Jennifer Kao.
LSE Growth Commission Report
In preparing its Report, the Commission and its research team draw on the output of its own analysis as well on relevant preceding work in the design of adequate responses to the growth challenges faced by the UK.
The stock of potentially relevant preceding work is vast, comprising numerous areas allegedly in need of improvements: e.g. regulatory barriers to competition such as planning and immigration controls; mid-level skill shortages; weak numeracy and literacy in the bottom and middle range of the skills spectrum; management capability deficits; lagging the US record in turning scientists into entrepreneurs; weaknesses in getting the output of R&D to the market; high energy prices; strained infrastructure; problems in access to credit; rebalancing the industrial composition of the economy; UK's role and relationship with international institutions; industrial policy; and the regulation of banks.
Download summarised report (PDF)
Download the Full Report:
Investing for Prosperity: Skills, Infrastructure and Innovation
Philippe Aghion, Tim Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Chris Pissarides, Nick Stern, John Van Reenen
2. The economic story of the UK
The growth process
UK decline and rebound
Decline again after the crisis?
Investment failure: the UK's fundamental problem
The right policy-making environment
The structure of our report
3. Human capital
Why human capital matters
Diagnosis: the problems of education in the UK
Core recommendations on education
Other policies to support human capital
Why have problems with human capital persisted?
4. Investment in infrastructure
Why Infrastructure matters
Diagnosis: the problems of infrastructure in the UK
Core recommendations on infrastructure
Other policies to support infrastructure
Why have problems with infrastructure persisted?
5. Private investment and innovation
Why private investment matters
Diagnosis: the problems of private investment and innovation in the UK
Core recommendations on private investment
Other policies to support private investment and innovation
Why have problems with private investment persisted?
6. GDP and beyond
7. How to get to where we want to go
If you have any comments on the report, please email them to us at email@example.com
Background Research Papers
Joao Paulo Pessoa
Human Capital and Growth - A focus on Primary & Secondary Education in the UK
Nitika Bagaria, Novella Bottini & Miguel Coelho
Infrastructure Bank - A blueprint for an Infrastructure Bank
Novella Bottini, Miguel Coelho & Jennifer Kao
Infrastructure and Growth
Novella Bottini, Miguel Coelho & Jennifer Kao
Private Investment and Innovation
Miguel Coelho, Jennifer Kao & Isabelle Roland
The Commission and its research team welcome comments and suggestions from external thinkers in academia, business and policy. To see a list of submissions so far, please visit our Contributors Page. To submit your comments, please email us at firstname.lastname@example.org.