Bucking the Market

There is a growing consensus in Britain that urgent membership of the Exchange Rate Mechanism of the European Monetary System is required to cure Britain's inflation and to secure the re-election of the Conservatives at the next election. The argument put forward by proponents of membership is, however, flawed and many of those who argue for membership have secondary reasons unconnected with sound analyses of the problems facing the British economy. Most of these arguments skim swiftly over the economic reasons for membership to concentrate on the political or the future of the EEC. And, indeed, many proponents of ERM are also unapologetic supporters of full monetary union. It is interesting that the clamouring for membership of the ERM is only now being put forward as a panacea for our inflationary problems. It was not so mooted as a cure for the inflation faced by Britain in the early 1980s. Is it a coincidence that the current calls for membership of the ERM occur at the same time as those in favour of full monetary union are pressing ahead on the next stage of their plan?

This paper seeks to scrutinise the major arguments put forward in favour of ERM membership - whether it be early membership, or even membership "when the time is right". It argues that membership of the ERM would not solve the problems faced by Britain. It seeks to establish this by concentrating on the following areas:

1. by exposing the flaws in the economic argument in favour of joining the ERM;
2. by highlighting the political implications of membership.

Read the full paper. 

Privatization Now!

This report contains the edited transcripts of the remarks given at the Third London Conference on Privatization.

The authors' worldwide experience prompted us to concentrate the focus of the Third London Conference onto the special features of privatization in developing countries. This resulting report provides policymakers in the developing world with a manual of great insight, which should help them press ahead towards the important political and economic benefits of privatization.

Read the first part of the report here and the second part here.

A Moving Experience

Edward Brooks says the English house-selling system is archaic, costly, slow, and nerve-racking for all concerned. His solution? Binding contracts, house logbooks, searches done by vendors before the house is put on the market - and a second-hand market in houses.

Read it here.

A Friend in Need

Based on the ideas of Labour MP Frank Field, this report suggests steps toward localization of welfare services through the old Friendly Societies system, rather than the modern state-centered organization. In a bold move away from his party, Field recognized the problems of the state controlled system and the benefits that market forces and local control could incur on the system proposal. In the move back to the Friendly Societies, unemployment benefits would be dispensed locally with specialized services specific to communities, giving customers options of moving to Societies which benefit them most - increasing level of service for all through competition. This report finally concludes that such a change could improve not only the UK, but services across Europe as the trends of competitiveness spread.

Read the whole paper here. 

Adam Smith's Legacy

Prominent academics, journalists and politicians highlight the historical contribution of Adam Smith and the role of his ideas in the shaping of modern economic thinking. Includes contributions by Leo Rosten, Professors William Letwin and Edwin G West who speak to The Wealth of Nations and The Theory of Moral Sentiments specifically, Richard Vernier, Russell Lewis, writing about Adam Smith today, Rt Hon Nicholas Ridley, Professor Norman Barry with a piece about the ethics of capitalism, and Dr Jeremy Shearmur.

Read the full essay collection here

Competition for the Phone

In approaching the decisions that have to be made in the forthcoming duopoly review, this paper argues that the UK should adopt the same approach that it has to other industries as they move towards more effective competition. The reduction in intervention, and the increased opportunity for market forces to shape companies throughout British industry, have transformed many under-performing sectors. They will be no less effective in the telecommunications sector.  

Read full paper. 

European Pharmaceutical Policies

The following publication is a summary of key policies toward pharmaceuticals in three european countries, Britain, France West Germany, in 1989. Four key policy areas are covered; pricing, and reimbursement , registration, research and development and patents.

Read the full paper.

The EuroOmega Project: Constitution

This report is a contribution to the debate (as of 1990) on the structure and future of the European community. It does not cover the debate as to whether the United Kingdom should or should not remain a member of the community.

Read the full paper

Green Machines

There is a neo-puritan strain running through parts of modern society which urges us to live more simply. Looking longingly back to easier and quieter times, it urges us to learn to do without the motor car and the conveniences it brings. This view is sometimes expressed as an aversion not onlyto automobiles, but to economic growth itself. It sees modern technology as the source of insuperable problems, and urges us to dismount the tiger which we have by the tail.

This report derives from the alternative view that the problems derive not from surfeit of modern technology, but a deficiency of it. It seeks to explore how a more advanced technology of a lower level. It endeavours to apply the problem-solving techniques of public policy in order to accelerate the development of a technology which brings answers instead of problems.

The solution looked for is not one which seeks to banish the automobile, but one which seeks to tame it, to humanize it, to make it an acceptable companion of our cities. 

Read the full paper here.

Fast Track Forward

High speed rail networks across continental Europe are developing rapidly, with the liberalisation of Eastern Europe and the unification of Germany. With the French Railways (SNCF) and German Railways (Bundesbahn) looking to expand eastwards. Britain risks being left on the sidelines as an island nation. It must look for innovative ways to rejoin Europe with high speed rail. The Labour Party's policy document "Moving Britain Into Europe - A high speed future for transport" is one possible way of bridging the gap. This paper critically analyses Labour's proposals, examines the controversy surrounding the fixed link, suggests policies for a high speed UK rail network and develops two sets of proposals for high speed services to Europe. It is also calling Government to implement feasibility studies on such proposals or to put forward its own alternatives. 

Read the full paper here