Investment Conference: Heed spirit of Adam Smith

Panmure House hopes to foster the thinking that could lead to a new Scottish Enlightenment, writes ProfessorAngus Laing
Professor Angus Laing. Image: Scott LoudenProfessor Angus Laing. Image: Scott Louden
Professor Angus Laing. Image: Scott Louden

In Scotland today we face our fair share of economic challenges, from the after effects of the pandemic to Brexit, not to mention the global impacts of Russia’s war against Ukraine. But when faced with huge challenges, Scotland is capable of remarkable innovation and world-changing thought leadership.

This year marks 300 years since the birth of Scottish Enlightenment thinker and the “father of modern economics” Adam Smith.

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He remains one of Scotland’s most profound and influential thinkers of all time, so it is a logical step to wonder what Smith might make of our contemporary economic problems. The flaw with pursuing this line of inquiry is that Smith is lacking nearly 300 years of context, as he was of course an empiricist and derived his theories and ideas from studying the world around him.

I would argue a far better approach is to ask how can we channel Smith’s spirit and approach to awaken our own Scottish Enlightenment today?

This is the approach we take at Panmure House, Smith’s final remining home, nestled just off the Royal Mile in Edinburgh. It was here that Smith completed his final revisions to both The Theory of Moral Sentiments, and An Inquiry into the Nature and Causes of the Wealth of Nations. He also used his home as a hub for fellow Scottish Enlightenment thinkers, hosting robust debates over dinner.

The house itself was rescued from dereliction by Heriot-Watt University and the Edinburgh Business School in 2008. Following a ten-year, £5.6 million restoration, the house is once again home to innovative research, debate and study. While the physical restoration of Panmure House is complete, the much more important intellectual restoration continues.

Our mission is to provide world-influencing social and economic debate and research that effects positive change. Just as Smith did, we want to influence change and see business and governments serve the common good. We do this by convening in Smith’s name, giving a platform to diverse, inclusive and well-reasoned debate, and conducting practical research.

Smith’s own depth of insight and curiosity spanned fields as diverse as psychology, ethics, finance, social and political theory, history, philosophy, language, law and justice. His legacy epitomises all that can be achieved when intellect is free to question and probe the boundaries of what we know to be true.

We stand at the cusp of a fourth industrial revolution, accompanied by geopolitical instability, rising inequality, environmental crisis and economic turmoil, while also witnessing a decline in nuanced debate. At a time when open discussion and critical thinking should be most encouraged, the chasm between opposing points of view appears wider than ever before, encouraged by digital echo chambers and political and economic agendas focused on short-term results.

If we are to effect positive change for the common good, we must resist this temptation to fall into silos and short-term thinking. We must embrace the uncomfortable, yet ultimately rewarding, challenges of nuanced debate and discovery, looking beyond the quarterly results sheet.

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Throughout Adam Smith’s tercentenary year (his 300th birthday), There is no better time to reignite the spirit of the Scottish Enlightenment than Adam Smith’s tercentenary year. To this end, we have recently announced the appointment of Professor Adam Dixon as our Chair in Sustainable Capitalism. Adam will lead our academic research on the role of global finance, the role of corporations and the role of the state in creating a sustainable model for economic growth and prosperity.

When we created this role, some remarked that “sustainable capitalism” must be an oxymoron. “Capitalism”, in the spirit of Smith’s free market thinking, may be one of the best tools that humanity has known for fostering innovation and growth. But it is far from perfect and has garnered a reputation for harbouring inequality and environmental degradation.

But Smith’s work, across both An Inquiry into the Nature and Causes of the Wealth of Nations and The Theory of Moral Sentiments, makes it clear that Smith viewed the free market, wealth and growth as only effective if they served the greater, common good.

At Panmure House, we believe these issues must, and can, be addressed through open inquiry. We can create sustainable models for 21st Century growth which foster the best in innovation and individual freedoms, while also lifting the most vulnerable out of poverty, addressing intersecting inequalities and using the Earth’s resources fairly.

​To find out more about Panmure House’s work, and how you can celebrate the tercentenary with us, please visit www.panmurehouse.org