The gains from globalisation have been highly unequal, with a large proportion of households experiencing flat or falling incomes over the last quarter-century. This has both increased economic anxiety and eroded the legitimacy of the political systems that promoted global economic integration. Our work on economic policy is focused on how best to regulate, redistribute and reconfigure the economy to deliver more equitable growth.
This is relevant at all levels of the economy. Local policy decisions have a direct bearing on the prosperity of the places where people live and work, and are critical to reversing economic decline and ensuring better prospects for the future. National policy can be reshaped to deliver the infrastructure and industrial strategy necessary for the modern economy to flourish while sharing wealth fairly between business owners, workers and consumers, and across different regions and sectors. And at the international level, both financial flows and trade in goods and services need new frameworks to address domestic challenges and coordinate across borders.
A new approach that accepts the benefits of a modern, interconnected economy while addressing and solving its challenges head on can secure the benefits of globalisation for the next generation.