Nicola Sturgeon's Opening Remarks: The Imperative of Diverse Expert Opinion and Inclusive Growth in Economic Policymaking

Nicola Sturgeon addresses the Institute for New Economic Thinking (INET) conference in Edinburgh, emphasizing the historical significance of the city as a hub for economic thought, particularly Adam Smith's legacy. She highlights the origins of INET in the 2007-2008 financial crisis, attributing it partly to shortcomings in modern economics and a policy consensus that overlooked dissenting expert views. Her central argument is the critical need for politicians to actively seek and incorporate a broader range of expert opinions, especially those that challenge existing worldviews, to avoid "groupthink" and prevent future policy failures. Sturgeon distinguishes between politics driven by values and judgments versus facts and figures, acknowledging both are essential. However, she stresses that the challenge for modern politicians is not to listen less to experts, but to listen *more broadly*, particularly to dissenting voices that might alert policymakers to real risks. She notes that while strong principles are a strength for politicians, they can also lead to a bias towards evidence that fits a pre-existing worldview, making it harder to reconcile diversity and complexity with prompt decision-making. The EU referendum's "people have had enough of experts" quote is cited as an infamous example of this problematic sentiment. Sturgeon outlines practical steps taken by the Scottish government to engage with diverse expertise. This includes establishing a Council of Economic Advisors in 2007, comprising international and diverse experts like Joseph Stiglitz and Mariana Mazzucato, whose advice directly influenced decisions such as the creation of a National Investment Bank and the expansion of early years education. She also mentions an International Conference on Inclusive Economic Growth and the "Well-being Alliance," which aims to measure economic performance beyond GDP. These initiatives demonstrate a commitment to drawing on the "best international advice" to navigate challenges like productivity stagnation, an aging population, the low-carbon transition, automation, and Brexit. The speech underscores the Scottish government's focus on inclusive growth, viewing it not just as a moral imperative but as an economic necessity. Sturgeon cites evidence from the OECD demonstrating how income inequality hampers productivity and economic output, and how gender inequality reduces overall economic potential. She connects this to Adam Smith's broader vision of society, arguing that economic policy is ultimately a means to create a "flourishing or happy" society where people can live "happy, healthy, fulfilling lives." The speech concludes with a call for Scotland to remain an open, outward-looking economy that embraces immigration and international talent, contrasting this with the "frustrating" anti-immigration rhetoric of the EU referendum.

your first annual conference was held in the Cambridge College where John Minard keins wrote his general theory your second was at Breton Woods of course the site of the conference that did so much to shape the post-war global economy

Adam Smith of course was the founder of modern economic thinking he lectured at Edinburgh in the 1750s and then he lived and worked for the final years of his life at panmure house which is just a mile or so away from here

the origins of the institute for New Economic thinking uh lay in the financial crisis of 2007 and 2008 and I know that one reason behind the setting up of this institute was a feeling that the crash resulted in part from shortcomings in modern economics and the work of economists

I think the imperative and the challenge for modern politicians is how we open our thinking to a broader range of expert opinions and in particular those opinions that challenge our view of the world not just opinions that reaffirm our view of the world

the financial crisis and the extent to which at large elements of policy Mak making where out of kilter with reality in the run up to 2007 it provides overwhelming evidence of the need to listen to opinions as I said earlier that challenge our view of the world not just those that reinforce and reaffirm that view

professor stiglet said that tackling inequality is the foremost challenge that many governments face and Scotland's economic strategy leads the way in identifying these challenges and provides a strong vision for change

the oecd estimates that between 1990 and 2010 income inequality in the UK reduced economic output per head by 9 percentage points now to put that in context that amounts to ,600 for every person in the UK

if women participated in the workforce at the same rate as men they out put of oecd countries over the next 20 years would be 12% higher

as he famously argued in The Wealth of Nations no Society can be flourishing or happy of which the greater part of the members are poor and miserable

ultimately economic policy is a means to an end it's the means by which we enable people or don't enable people to live happy healthy fulfilling lives