Nobel winner to help draw up economic blueprint for Scotland

NOBEL Prize-winning economist Professor Joseph Stiglitz has joined the Scottish Government’s body of key economic advisers as part of a shake-up of the organisation.

Other changes to the Council of Economic Advisers (CEA), launched by Alex Salmond in 2007, see Crawford Beveridge, former head of Scottish Enterprise, handed the role of chief economic adviser in place of former Royal Bank of Scotland (RBS) chief executive Sir George Mathewson.

The sweeping changes to the body which offers advice to ministers on tax and other key economic issues, announced yesterday, saw six departures and three arrivals.

Professor Anne Glover, chief scientific adviser to the Scottish Government, and Professor Louise Richardson, principal and vice-chancellor at the University of St Andrews, are the other two additions.

Mr Salmond said the group would “benefit” from the “knowledge” of Mr Stiglitz, who won the Nobel memorial prize in economic sciences in 2001 and served as the chief economist of the World Bank.

Sir George told The Scotsman yesterday he was stepping down from the body because of “external commitments” and that his departure was not as a result of any disagreements with government ministers.

Others leaving the group, which is being reduced form 11 members to six, are oil economist Professor Alex Kemp, Frances Cairncross, rector of Exeter College at Oxford University, Lord Smith of Kelvin, chairman of the Weir Group and Scottish and Southern Energy, Professor Finn Kydland, the Henley professor of economics at the University of California, and Professor John Kay, another economist and author.

In a previous annual report from the council, it emerged that 38 of its 44 recommendations were accepted in full by ministers, with none rejected.

The First Minister yesterday said the council plays a “crucial role” in helping the government prepare its economic policy, at a time when the SNP majority is set to continue to make the economic case for independence ahead of a referendum on separatism.

Mr Salmond said: “The CEA plays a crucial role in advising the Scottish Government as it works to address the challenges and opportunities of the global economic downturn and to accelerate sustainable economic growth.

“I would also like to welcome new members, Professor Stiglitz, Prof Glover and Prof Richardson, to the CEA.

“The three new members are all at the forefront of their academic fields, and I am confident that the group, and Scotland’s economy, will benefit from their knowledge and experience.”

Meanwhile, the Scottish Government confirmed that the council would now meet twice a year rather than the current three meetings – although the annual reports to ministers are set to continue.

The change to meeting schedules is understood to be because of the diary commitments of council members, with those on the body expected to be involved in more email communications with government officials.

A government spokesman said: “The CEA will play an important role as we take forward our ambitious programme for government and create a more successful Scotland.”