A profound economic crisis: finding a way through to a better future

A profound economic crisis: finding a way through to a better future

This conference on A Profound Economic Crisis: finding a way through to a better future brought together politicians, economists, academics, and representatives from business and energy to examine the interconnected causes and consequences of recent economic shocks and deeper structural challenges facing local and global economies. Participants shared a desire to move beyond "frozen economic orthodoxy," which is viewed as inadequate for understanding current complexities and the transition toward a sustainable future. The discussions highlighted the crises' manifestations, such as shortages, low wages, high living costs, and the pressing need for decarbonisation and adaptation to climate impacts. There was consensus that globalisation is "misfiring" and that a crisis of inequality is destabilising democracies, challenging the economic orthodoxies of the last forty years. A core theme was the call for more experimentation and pragmatism in the search for solutions, including rethinking measures like GDP, valuing intangible assets, and promoting circularised economies to achieve growth without exceeding planetary boundaries. The need for greater, coordinated capital investment, particularly in the green transition and in small, regionally-based firms, was emphasised, alongside a call for a revision of the balance between free trade and protectionism, and central controls and devolution. Ultimately, the gathering underscored the urgency for democratic societies to define what they want to achieve and to show bold leadership to renew their economies for all citizens.