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It sometimes feels like the world will never return to anything approaching 'normal'. After years of constitutional discord over Brexit, no sooner was the UK's departure from the EU over the line than we were plunged into a global pandemic. Just as that catastrophe was put behind us, Russia invaded Ukraine. No one knows where this tragic tale will end, but it's hard to think of many welcome conclusions and not difficult to imagine some truly awful ones.
The impact of Putin's invasion of Ukraine is already being felt in so many ways – a general cost of living crisis is being exacerbated by spiralling energy costs, swathes of companies are curtailing or cancelling their presence in Russia, and we have even seen the effective nationalisation of Chelsea Football Club. Enormous political and economic questions are being raised, from whether the West has any sort of coherent security strategy to a wholesale rethink of energy and environmental policies. In many ways, the government's much-trumpeted Net Zero strategy seems like a bizarre relic from a totally different era.
My terrific panel of guests on Live with Littlewood last week grappled with the issues of defence spending, the moral obligations of companies, the search for a new energy policy and the best way to deal with millions of refugees fleeing Ukraine.
On the question of immigration, I argued for a liberal approach in my Times article. Setting aside the very real humanitarian concerns, I put the economic case for welcoming hundreds of thousands of Ukrainians to our shores.
I also had the opportunity to sit down with the Rt Hon Sir John Redwood MP to discuss how we might adopt a more bottom up approach to environmentalism rather than policy in this area being a depressing series of government diktats. You can watch the full interview here.
Finally, on the home front, the IEA says a fond farewell to Professor Philip Booth. Philip has been at the Institute for nearly twenty years and has been a truly inspirational intellectual leader in the free market movement. Over the last year or so, he has developed the Vinson Centre at Buckingham University into a hub of rigorous classical liberal thought and debate.
Philip is leaving us to become the Director of Research and Policy for the Catholic Bishops' Conference of England and Wales and we wish him every success in his new role. We are delighted that he will remain involved in our Shadow Monetary Policy Committee and on the editorial board of Economic Affairs.
Mark Littlewood
Director General, Institute of Economic Affairs
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A RECIPE FOR WASTE
This year, the UK's new post-Brexit subsidy control regime will take effect. The new Subsidy Control Bill, which is currently making its way through Parliament, will replace the EU's state aid rules, which applied until the end of the Brexit transition period.
However, as our Head of Public Policy Matthew Lesh points out in a new IEA briefing paper, the new regime will make it easier for public authorities to subsidise private enterprise. He warned that less supervision and transparency than under EU state aid rules is "a recipe for disastrous waste of taxpayer money".
Under the proposed provisions, it is estimated that £4bn of subsidies could escape transparency. In order to tackle waste and corruption, Matthew recommends the UK disclose all state subsidies or, at the very least, lower the reporting threshold considerably.
The UK's Anti-Corruption Champion John Penrose MP and Anna Powell-Smith, Director at the Centre for Public Data, both endorsed the paper.
IEA Head of Regulatory Affairs Victoria Hewson also wrote an article for CapX on the paper, saying: "Voters facing a historically heavy tax burden have a right to know where their money is going".
Matthew discussed the paper with IEA Communications and Public Affairs Officer Kieran Neild-Ali for the IEA Podcast. Listen here.
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LIVE WITH LITTLEWOOD
As Mark mentioned, Live with Littlewood returned to our screens last Wednesday with another fantastic line-up to unpick the week's main headlines.
Emma Webb, Deputy Research Director of Free Speech Union; Patrick Christys, GB News Host and Journalist; Helen Dale, Lawyer and ‘Australian literature’s lone classical liberal’; and IEA Head of Regulatory Affairs Victoria Hewson joined Mark on the sofa to discuss the war in Ukraine, the UK's refugee policy, defence spending and the Net Zero target.
Helen analysed the cultural and historical context of the Ukraine conflict and criticised the Home Office's handling of the refugee crisis. And Victoria came out against a referendum on Net Zero. While climate targets lack democratic scrutiny, she suggested a different mechanism is needed to repeal costly climate policies.
Watch the full episode on the IEA YouTube channel here.
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iN THE MEDIA
Open arms... The government has come under increasing pressure to take a more liberal approach to Ukrainians fleeing war. As IEA Director General Mark Littlewood argued in his fortnightly column for The Times and on Times Radio, there is both a humanitarian and an economic interest in allowing Ukrainians to settle in the UK.
In an article for 1828, IEA Analyst Andy Mayer proposed that the UK help unaccompanied Ukrainian children by initiating a scheme similar to the Kindertransport, which delivered nearly 10,000 children to safety before the outbreak of the Second World War.
International Women's Day... Last Tuesday, the world celebrated International Women's Day (IWD). In her weekly Spectator column, IEA Director of Communications Annabel Denham argued "IWD has morphed into a patronising exercise susceptible to piggybacking from single-issue bores who distract us from the real issues".
Annabel suggested we should go back to the drawing board and think about what IWD should aim to achieve. And against the backdrop of IWD and the delayed final Ockenden report into the Shrewsbury & Telford NHS Hospital Trust maternity scandal, Annabel also wrote a piece for The Telegraph asking: Why does the UK have consistently higher infant mortality rates than the average of our comparator countries? Read here.
Nuclear option... The UK is expected to publish its revised energy policy in a new 'Energy Independence Plan', prioritising the development of nuclear power to end reliance on foreign powers for energy.
Discussing the proposals on GB News, Andy Mayer told viewers that "everyone is rooting for nuclear to succeed, but companies need to deliver on their promises". Fracking, he said, is a better short term solution to the UK's energy needs. Andy argued green activists should "grow-up" and stop obstructing the opening of fracking sites.
Taiwan trade shift... Reports suggest Taiwanese trade is moving away from China, as exports to the mainland have fallen this year. Commenting on the news in City AM, IEA Head of Public Policy Matthew Lesh explained: "The most immediate cause is likely to be the huge global demand for Taiwanese semiconductors among a global shortage".
Matthew noted, too, that China’s ongoing human rights violations in Hong Kong and Xinjiang, as well as its increasingly centrally-controlled economy and weakening relations with the West, has led many major companies to reduce operations or leave the country.
Moral Maze... IEA Economics Fellow Julian Jessop appeared on BBC Radio 4's Moral Maze last Wednesday evening. The panel discussed whether there is a role for morality in business practice, following the decision by some global companies to cease operations in Russia. You can listen back here.
In conversation with... IEA Head of Political Economy Dr Kristian Niemietz was interviewed by the Atlantico Quotidiano, a liberal-conservative Italian magazine.
Kristian was asked about his 2021 paper, Left Turn ahead?, which surveyed attitudes of young people towards capitalism and socialism. Read the Atlantico piece here.
New Culture Forum... IEA Head of Cultural Affairs Marc Glendening took part in the New Culture Forum's Newspeak panel, where he discussed the impact of Ukraine on our energy security; whether the West is right to "lionise" President Volodymyr Zelenskyy; Transport for London's new 'anti-staring' campaign; and International Women's Day. You can watch here.
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ON THE IEA BLOG
Missing the mark?... IEA Editorial and Research Fellow Professor Len Shackleton has warned that some gestures made in response to the Russian invasion of Ukraine are "simply pointless, and can have no effect whatsoever except in the mind of those who carry them out". He writes that we may have gone too far, and risk violating property right laws, by calling for assets of Russians to be seized with no substantial evidence.
Instead, the West should focus on providing arms and refuge – actions which could directly support Ukraine against Russia. Read here.
Pandemic island... On the first anniversary of the release of Viral Myths – Why we risk learning the wrong lessons from the pandemic, author Kristian Niemietz assessed how well Britain has dealt with the Coronavirus in the intervening period.
Kristian argued that the UK has "made up some lost ground" in the pandemic's second year, defying the pessimism of 'Covid hawks' who argued the UK opened-up too quickly. Read here.
How Modern Monetary Theory gets it wrong... Economist David Weinberger explains how Modern Monetary Theory (MMT) fails to recognise resource scarcity by confusing money with resource.
He provides a rebuttal to economist and MMT proponent Warren Mosler who suggests resource scarcity applies when workers are widely employed, but not when a significant number are unemployed. Read the full blog here.
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WE HAVE A WINNER!
Last Wednesday, the IEA and the Vinson Centre invited the top 10 teams to the Budget Challenge Final at the University of Buckingham.
Judged by IEA Head of Education Dr Steve Davies, Professor Philip Booth, and former Labour MP Ruth Kelly, each team had 10 minutes to present their vision of a budget if they were Chancellor of the Exchequer and then answer questions on their proposal to the panel.
After much deliberation, Sutton Valence School took the win, with Westminster School, Bedford Modern School, and Brighton College runners-up. Congratulation to all those who took part!
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IEA PATREON
Thank you to all of you who have already signed up to become an IEA Online Patron. Becoming a Patron grants you VIP access to our latest videos, priority invites to our virtual events, and the opportunity to engage directly with IEA Director General Mark Littlewood and the IEA team. For just a small donation you can get all these benefits and more.
To visit the page and find out more about the IEA’s Patreon, follow the link here or watch our trailer here.
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IEA DIGITAL
Markets & Morality... In light of Russia's assault on Ukraine, many European countries have committed to increasing their defence budgets. Should the UK follow suit? In a new episode of Markets & Morality, Director at EPICENTER Adam Bartha asked whether classical liberals should support higher defence spending.
Sam Armstrong, Director of Communications at the Henry Jackson Society, argued that Britain has a duty to support its allies, and that there are small investments the Ministry of Defence could make, without wasting taxpayer’s money. But the IEA’s Jamie Whyte takes the view that Russian aggression alone doesn’t justify additional expenditure, as resources are not the reason why the UK would want to stay out of the conflict. You can watch the debate here.
A path to recovery?... Alexander Hammond, Director of the Initiative for African Trade and Prosperity, spoke to Nataliya Melnyk, Director of Communications at the Bendukidze Free Market Center, based in Ukraine, to discuss her experience of fleeing Kyiv and how the nation can be freer economically once the war ends. Watch here.
Build Back Green... As our Director General Mark Littlewood mentioned, last week he interviewed the Rt Hon Sir John Redwood MP on his latest book: Build Back Green: The Electrifying Shock of the Green Revolution.
Sir John argued that, like any revolution, the green revolution should be conducted from the bottom up, through the free market. Instead of state diktats, innovators and entrepreneurs need the freedom to develop products that respond to consumer choices and innovate to reduce carbon emissions. Watch here.
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CALLING ALL STUDENTS!
We are delighted to announce the launch of the 2022 Dorian Fisher Essay Competition. Named after the beloved wife of our founder Sir Antony Fisher, this is our biggest essay competition of the year, exclusively for A-Level and IB students.
First prize will receive £500, with a separate prize of £500 for the school with the highest number of entrants. The deadline for this year’s competition is Friday 29th July 2022. You can find out more here.
Sixth Form Future Thought Leaders’ Programme... You can also apply to attend a week-long programme for sixth formers which will take place from Monday 25 – Friday 29 July. The week will include lectures, discussions, and debates with expert economists.
Due to high demand, we are pleased to announce that an additional week of the Sixth Form Future Thought Leaders’ internship will also take place at the IEA between Monday 18 – Friday 22 July. This week-long programme for sixth formers is a way to get experience discussing economic ideas and concepts beyond the exam curriculum.
To apply, please send a CV and short covering letter to IEA Outreach Coordinator Thomas Robinson at [email protected] explaining why you would like to take part.
Residential Summer School... In partnership with the Institute of International Monetary Research, the Vinson Centre, and the Initiative for African Free Trade and Prosperity, the IEA will host a residential summer school.
This programme is open to undergraduate students and will take place from 27 June to 8 July. It will have four streams: general economics, monetary theory, economic history, and trade and globalisation.
Summer School Internship... Last but not least, our summer school internship will start from Tuesday 2 August – Friday 19 August. Interns will participate in lectures, seminars, debates, discussions, as well as workshops on professional and career development.
The deadline to apply for these programmes is 1 April. You can find out more about all of our internship programmes here, or email IEA Head of Outreach Brittany Davis at [email protected] with any questions.
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