ASI Fellow argues against the ‘bankers’ oath’ in the City AM debate

Adam Smith Institute Fellow Mikko Arevuo takes part in the City AM debate, arguing against the notion that making bankers take an oath is the best way to restore trust in the financial system.

The idea that we can restore consumer trust and confidence, or prevent the next crisis, by requiring bankers to swear an oath is excessively naive.

Such a pledge trivialises the ethical issues that banks and their employees face in the real world. It gives a false sense of confidence that implies that expressing a few lines of moral platitudes will equip bankers to resist the temptations of short-term gain that can exist in financial services.

Moreover, changing organisational culture is a long and ambiguous process.

Bankers operate within tight regulatory frameworks; the quickest way to drive behavioural change is through regulatory interventions.

Alternatively, banks should change compensation policies to focus on sustainable shareholder value creation rather than short-term gain, as well as enforce bonus claw-back clauses to limit reckless risk taking.

Read both sides of the debate here.

ASI Research Director writes for The Spectator Coffee House: The state should send many more poor children to private schools

Research Director of the Adam Smith Institute, Sam Bowman, wrote a comment piece for The Spectator detailing the links between education quality and long-term economic growth found in the ASI’s new report “Incentive to Invest: How education affects economic growth“.

Better capital makes us richer. That’s uncontroversial when it comes to fixed capital like machine tools and computers, but it’s also true of human capital. Better educated workers create more productive jobs, increasing the total amount of wealth in an economy.

In a new Adam Smith Institute report released today, Incentive to Invest: How education affects economic growth, we found a very significant relationship between improvements in education and growth. In our model, a 10 per cent increase in TIMSS Advanced test scores generates a long-term 0.85 per cent increase in annual economic growth. We argue that getting more children into independent schools through vouchers may be the easiest way of improving outcomes, and thus growth.

Read the full article here.

The report, “Incentive to Invest: How education affects economic growth”, reveals that Britain could add billions of pounds to its long-term economic growth by increasing access to private education.

ASI “Incentive to Invest?” report featured in The Times

The Adam Smith Institute’s latest report – which finds education quality has a direct impact on long-term economic growth – was featured in The Times.

Sending more children to private school would add billions of pounds to Britain’s economy, a new report claims.

Increased competition between independent schools could have raised GDP by £5,800 per person, according to Incentive to invest: how education affects economic growth, a study from the Adam Smith Institute.

The report compared Britain, where about 7 per cent of children are privately educated, with the Netherlands, where the state pays for about two thirds of children to attend independent schools.

Read the article here.

The report, “Incentive to Invest: How education affects economic growth”, reveals that Britain could add billions of pounds to its long-term economic growth by increasing access to private education.