A global economic think-tank has used its conference in Scotland to launch a new initiative it hopes will transform the world’s economy.
The Institute for New Economy Thinking is currently in the midst of a three-day ‘Reawakening’ conference at the Edinburgh International Conference Centre where top economists from around the globe have gathered for a series of intensive debates and discussions.
Among those at the event are Nobel Prize winners Joseph Stiglitz and Michael Spence, who were joined by INET chairman Lord Adair Turner and INET president Robert Johnson for a special news conference to unveil its Commission on Global Economic Transformation.
They said INET was moved to act following a series of political shocks including Brexit, the election of Donald Trump in the US and also the Catalonia crisis.
And they insisted the commission would look at producing a report in 2019 aimed at finding a new path for the global economy to take it on a direction that could help provide more stability and prosperity for those in the developed and developing world.
Professor Stiglitz said it was clear that economies including the US and UK “have not been working well for most of its citizens” and that a new path was needed.
He said: “We need new rules an coordinated governance to address destructive tendencies rapidly emerging in the global economy and to protect human communities subject to them.
“Whether it comes to reckoning with widening inequality, climate change or stagnating growth, it’s clear that our international governance frameworks are outdated and need to be reconciled in a globally interdependent world.
“The Commission looks forward to sharing our work with governments around the world to aid them in tackling these challenges to economies and our social fabric.”
Professor Spence said a number of challenges faced the commission including “rising inequality in growth patterns and increasing social, political and economic upheaval”.
He added: “We suspect this has contributed to centrifugal forces within societies and across national boundaries.
“Political polarisation in the US and across Europe, coupled with widespread global poverty and inequality, may undermine our ability to address these challenges in a vigorous and pragmatic manner.
“A second set of challenges relates to the impact of rapidly evolving digital technologies on economies, jobs and needed skills.
“We hope the commission’s research and findings will help guide governments, international institutions, businesses and CSOs in coming together to address these challenges.”
The conference was opened on Saturday by First Minister Nicola Sturgeon.
in her address she said: “In Scotland, we are seeking to tackle the big economic issues in the right way, as we build not just a stronger economy, but also a better and fairer society.
“To help us achieve that there is much we can learn from outside analysis and perspectives. That is why we have an international, diverse and expert Council of Economic Advisers, which has had a significant influence on government thinking.
“It is also why I am delighted to welcome the Institute for New Economic Thinking to Scotland – a gathering I am sure will help deliver some of the fresh perspectives we need as we seek to address the economic challenges of the future.”
The INET conference also spent much of its time in Edinburgh debating the influence of Scottish enlightenment thinker Adam Smith and his Wealth of Nations - which led to him being widely known as the ‘father of economics’.
