Global economists update Adam Smith's 'Wealth of Nations' for the 21st century climate crisis

A major new essay series has been launched at COP26 in which leading global thinkers explore today’s climate crisis through the eyes of economic pioneer Adam Smith.

The reimagining of the Wealth of Nations includes a foreword from First Minister Nicola Sturgeon, in which she argues that Smith would have likely ‘supported regulation to guard against the destruction of the planet’.

She also makes the argument to look beyond GDP as the primary measure of a country’s success, adding: “At this pivotal moment for the planet and as we emerge from the challenges of the pandemic, progressive nations and governments are increasingly focussing on wellbeing, not simply an increasing GDP for the sake of it.”

The series of five essays has been prepared by the Edinburgh-based Global Ethical Finance Initiative (GEFI), in conjunction with the University of Glasgow and Royal London, bringing together world-renowned experts to reimagine Smith’s works.

The authors include Usha Rao-Monari, Under-Secretary-General at the UN, Professor Sir Anton Muscatelli from Glasgow University, Lord Meghnad Desai, Professor Emeritus at the London School of Economics, sustainable fund management pioneer David Pitt-Watson and former Malaysian Central Banker Dr Zeti Aziz.

This series of essays takes the Wealth of Nations and updates it for the 21st century, asking how Smith’s work applies to the challenges of today.

The work is designed to encourage and inspire further creative thinking and practical action to leave an enduring legacy after the COP26 summit.

The essays will be explored at an evening lecture series taking place across three days from today (8 November), at the University of Glasgow Adam Smith Business School, and online.

In her foreword, First Minister Nicola Sturgeon writes:

“We cannot know exactly how Smith would have responded to the climate emergency, but given his support for reasonable protections against, for example, abuse of monopolies it seems likely that he would have supported regulation to guard against the destruction of the planet.

“This series of essays takes the Wealth of Nations and updates it for the climate change era, asking how the themes of Smith’s work apply to the challenges of today and teasing out how Smith himself might have reacted to the climate emergency.

“It showcases Scotland’s proud academic history, and is a timely celebration of one of the key figures of the Scottish Enlightenment.

“It is the perfect time to reach back into our past as we look ahead to a future that is cleaner, greener and more just.”

Sam Wheldon-Bayes of the Global Ethical Finance Initiative, editor of The Wealth of Nations in the 21st Century, said:

“During the 18th century, the Scottish Enlightenment put Glasgow at the heart of world thinking. Today, with the world in Glasgow for COP26, we ask what we can learn from one of the great pioneers of the Scottish Enlightenment.

“Expert authors, across three continents, from the fields of finance, economics, politics, development and central banking have written five essays drawing on Smith’s themes and reflecting on the climate crisis.

“They consider both how Smith’s thinking can guide our approach to climate action, and what he himself might have thought about the climate crisis.

“Our wish is that the essay series drives creative thinking and practical action to make the changes needed in the financial system for a sustainable future for planet and people.”

Kaisie Rayner, Climate Change Lead at Royal London, said:

“When Scottish moral philosopher and economist Adam Smith wrote his first book about markets, the role of government, and society, in 1759, he would never have imagined it’s global impact, far less its continued relevance in the modern world. Yet, here we are over 250 years later considering how it can help us navigate the 21st century. That’s quite some legacy.

“As the eyes of the world focus on Glasgow, it’s fitting that we consider Smith’s instruction to be guided by a moral compass. We also hope that leaders gathered for COP26 emulate the global success of Smith’s works and provide a legacy we can all contribute to and be proud of. The action we take on climate change over the next decade will radically shape the health of the planet, so we have to act now to help customers retire into a future worth living in.”