annual review 2011

Annual Review 2011

www.adamsmith.org

Dr Madsen Pirie, PresidentDr Eamonn Butler, DirectorTom Clougherty, Executive Director

01The Adam Smith InstituteANNUAL REVIEW 2011

From the Directors

2011 will surely be remembered as an eventful year. From

the Arab Spring and the war in Libya, to the Japanese

earthquake, the London riots and – yes – the Royal

Wedding, the newspapers had no shortage of things to

write about. And then there was the seemingly perpetual

economic crisis, which naturally loomed large over the

Adam Smith Institute’s work in 2011.

But while many commentators and policy analysts lost

their way in the face of a never-ending stream of bad

news, the Adam Smith Institute spoke with clarity and

force not just about the real causes of the crisis, but also

about the rational ways of escaping it. Our principled

approach, deeply rooted in liberty, free markets and limited

government, made us stand out from the crowd; our track

record opposing bailouts, exposing the unsustainability of

the welfare state, and revealing the futility of government

stimulus, lent our words striking credibility.

Sadly, the West’s economic woes look set to continue

throughout 2012 – a fact that is unlikely to bring a smile to

anyone’s face. But this crisis remains an opportunity, as well

as a threat. Now more than ever, it is vital that we come up

with radical but realistic visions for change – in monetary

policy and financial regulation, in education, health, and

welfare, and of course, in fiscal policy. In all these areas,

we must roll back the frontiers of the state and unleash the

incredible dynamism of the free market. Coming up with the

ideas that make this possible – we call it policy engineering

– is what the Adam Smith Institute is all about.

This Annual Review pulls together the highlights of our work

in 2011, but a few things deserve special mention. As you’ll

read on p.16, Sam Bowman launched City AM’s comment

section The Forum with a full page article calling for ‘a new

capitalist revolution’ – relegating shadow chancellor Ed Balls

to the second page. Professor Kevin Dowd’s lecture (p.12)

on ‘The Decapitalization of the West’ was an intellectual

tour de force, as was education expert James Croft’s

groundbreaking report on profit-making schools (p.8). And

Freedom Week, our weeklong seminar for Britain’s brightest

young libertarians, was bigger and better than ever before

(p.14).

There are few organizations in the world as intellectually

vibrant, as forward-looking, and as media-savvy as the

Adam Smith Institute. Thanks to our talented staff, our

exceptional network, and the generosity of our donors, 2011

was a very good year. With your support, we hope that 2012

can be even better.

02 The Adam Smith InstituteANNUAL REVIEW 2011

EconomicsEconomics dominated the news headlines and the public debate in 2011. The British government started to implement its fiscal consolidation plan. Inflation continued to rise steadily. Recovery from recession faltered, and the eurozone teetered on the edge of collapse.

Throughout the year, the Adam Smith Institute was busy

providing a strong and distinctive defence of economic

freedom, fighting back against those who argued growth

could be centrally planned, who said that we could tax our

way back to prosperity, or who suggested we could borrow

our way out of debt. The Institute also gave voice to a

positive agenda for economic reform, revolving around lower

taxes, deregulation, and financial and monetary reform.

Keynes Vs. HayekOne of the key themes of the 2011 agenda was captured

by July’s Radio 4 debate at the London School of

Economics: Keynes Vs. Hayek. Did free markets get us into

this mess, and do we need government intervention to get

us out, as John Maynard Keynes might have suggested? Or

was it government’s fiscal profligacy, monetary ineptitude,

and misguided financial regulation that got us into trouble

in the first place? In numerous articles, media appearances

and public speaking engagements in 2011, Adam Smith

Institute experts took the latter, Hayekian position.

When it came to public spending, Institute spokesmen

repeatedly made clear that there was no alternative to

spending cuts. Indeed, they frequently argued that the

coalition government’s plans did not go nearly far enough,

that they were only unwinding a very small part of the

extraordinary rise in spending that took place under the

previous government, and that there was ample scope

to be far more radical. They consistently debunked the

‘stimulus’ myth while arguing instead for a thoroughgoing

overhaul of the government and the public sector.

The ongoing crisis in the eurozone provided an alarming

example of what happens when governments fail to bring

debt and deficits under control. In 2011, the Institute’s

policy staff discussed the eurozone in a wide range of

forums, always stressing the severity of the crisis and

highlighting its roots in government incompetence. They

were quick to point out that bailouts and fiscal integration

would not solve the problem, and that hasty and ill-

considered bank recapitalisation risked making matters

worse. Instead, they made the case for fiscal responsibility

and policies to boost economic growth.

An agenda for growthOne of the biggest political disappointments of 2011 was

that the coalition government’s long-awaited growth strategy

turned out to be a damp squib. There were no moves to


OPPOSITE: Clockwise: front page coverage of our renewables report in the Daily Telegraph; Eamonn writes on boosting businesses in the Sunday Post; the Daily Telegraph

cover our work on the minimum wage; Tom writes in the Sunday Times on the need for deregulation; Detlev Schlichter talks to the ASI about his book ‘Paper Money Collapse’.

address Britain’s utterly uncompetitive personal taxes. Nor was

there any significant progress in cutting red tape and freeing

up entrepreneurs. Instead, we saw the government involving

themselves in the allocation of credit, picking industrial

winners, and making dubious claims about the economic

benefits of expensive infrastructure projects. A series of Adam

Smith Institute projects addressed these issues.

On tax, the Institute released Peter Young and Miles Saltiel’s

The Revenue and Growth Effects of Britain’s High Personal

Taxes in March, ahead of the Chancellor’s budget. It argued

that high personal taxes were hitting growth and would end up

hitting government revenue too. It made the case for scrapping

the 50p tax rate and non-dom tax immediately, reducing the

higher rate of income tax from 40 to 35 percent, and cutting

capital gains tax to 18 percent. The report was backed up

by a concerted publicity campaign, and several members

of parliament were seen carrying copies into the House of

Commons on budget day. Little wonder that the Chancellor felt

compelled to reassure the House that the 50p rate would not

be a permanent feature of the British tax system, even if he

did not feel able to take up the report’s specific proposals.

Renewable Energy – Vision or Mirage? took aim at the

government’s energy policy, exposing it is an uneconomic

exercise in picking winners. The report argued that far

from promoting ‘green growth’ and spurring an economic

recovery, the government’s subsidy-intensive approach

to the energy sector would actually result in an insecure

and costly supply of energy, which would damage Britain’s


economic competitiveness. High Speed Fail assessed the

case for a new high speed railway line and found it wanting

in almost every respect. Crucially, analyst Nigel Hawkins

said HS2 would prove enormously expensive and deliver

few economic benefits.

On regulation, the Adam Smith Institute’s Eamonn Butler

and Tim Ambler assembled a panel of five ex-regulators to

write Reflections on Regulation: Experience and the Future.

In his introduction, Butler argued that the regulators should

return to their original purpose: to ensure that markets were

free and competitive, and then get out of the way. Tom

Clougherty made that same argument in a Sunday Times

column based on the report.

So much for the CityAnother perilously anti-growth proposal that received a lot

of attention in 2011 was the Financial Transaction Tax, also

known as the Robin Hood Tax or Tobin Tax, which would

levy a proportional tax on all equity, bond and derivative

trades. Exposing the flaws in this idea – which was heavily

promoted by the European Union and numerous left-wing

pressure groups – became one of the Adam Smith Institute’s

main campaigns. Two reports laid out our position: The

Tobin Tax – Reason or Treason? and Hanging London out

to dry – The impact of an EU Financial Transaction Tax.

Author Adam Baldwin showed how a similar tax had failed

miserably in Sweden, pointed out that it could severely

impact one of the UK’s most important industries, and

argued that rather than making markets less volatile, the

tax would actually make matters worse. The Adam Smith

Institute said the tax would be “economic suicide”. Shortly

afterwards, the Chancellor echoed that sentiment.

But it wasn’t just taxes threatening the financial sector in

2011. Regulation also loomed large on the horizon, not least

in the form of the Independent Commision on Banking, which

delivered its interim and final reports during the course of

ABOVE: Front covers of The Law of Opposites, The Case for NGDP Targeting and High Speed Fail. Coverage of Tax Freedom Day on the front page of the Daily Mail.


the year. As far as the Adam Smith Institute was concerned,

the Commission’s recommendations represented a missed

opportunity. They failed to address the key problem with our

modern banking system – namely that governments subsidize

bank risk-taking through implicit and explicit guarantees of

bank liabilities. Nor did they get to grips with the systemic

risk inherent in the deficiencies – current and expected – of

international capital regulation. In a series of briefing papers,

opinion pieces and public appearances, Institute spokesmen

highlighted these flaws and advocated their own, free market

approach: specfically, we must find ways of removing all

government support from the financial sector, and ensure that

failed banks can be resolved in an orderly fashion.

Another area that the Independent Commission on

Banking (perhaps understandably) did not tackle was

accounting rules. Yet as a groundbreaking Adam Smith

Institute study showed, this seemingly arcane policy area

has had a far more profound impact on our financial

sector than is commonly understood. In The Law of

Opposites banking insider Gordon Kerr exposed the way

in which international accounting rules have given the

impression of illusory profits on bank balance sheets,

inflating bonuses and creating perverse incentives for

banks to act recklessly. The report was launched at an

All Party Parliamentary Group meeting in the House of

Commons, and was covered by Bloomberg, the BBC, the

Guardian and the Daily Mail.

Money, money, moneyThe financial crisis exposed an important flaw in our

macroeconomic framework: inflation targeting failed

to deliver a stable monetary environment, and allowed

“Throughout the year, the Adam Smith Institute was busy providing a strong and distinctive defence of economic freedom”

ABOVE: Tom Clougherty and Dr Eamonn Butler on ConservativeHome and 50p coverage in City AM.


enormously damaging asset bubbles to build up. Yet

too few policymakers are thinking seriously about the

alternatives. In The Case for NGDP Targeting: Lessons

from the Great Recession noted American economist

Scott Sumner outlined his plan for reform. He argued that

a level-targeting regime for NGDP (or nominal income)

futures would prove far superior to inflation targeting,

and in the long run would make it possible to eliminate

policy discretion altogether, so that monetary policy was

conducted ‘automatically’ in accordance with a pre-

determined rule.

Several of the monetary experts who spoke at the Adam

Smith Institute in the course of 2011 took a different, and

perhaps even more radical view. In his lecture on ‘The

anachronism of state-controlled money’ George Selgin

argued that the state should not be in the monetary

business at all. Leading free banking advocate Kevin

Dowd took a similar position in his lecture on ‘The

Decapitalization of the West’, suggesting that central

banks could be replaced by currency boards offering

full convertibility into gold. Detlev Schlichter went even

further when talking about his book Paper Money

Collapse, and advocated a shift to a modern version of

the classical gold standard. Whatever happens in the

eurozone, the monetary debate looks set to gather pace

in 2012. The Adam Smith Institute will continue to be at

the forefront of it.

“The financial crisis exposed an important flaw in our macroeconomic framework: inflation targeting failed to deliver a stable monetary environment, and allowed enormously damaging asset bubbles to build up”

ABOVE: Front covers for our 50p tax report, Reflections on Regulation and Renewable Energy: Vision or Mirage?. Coverage of our 50p tax report on the Daily Telegraph and Douglas Carwell MP talking about the eurozone crisis and the outlook for 2012.


ABOVE: Coverage of our report on the Financial Transaction Tax and Sam’s article on the the need for a capitalist revolution in City AM


Education and HealthcareThe Adam Smith Institute has long been a leader in radical thinking about Britain’s public services, and has a proud history of producing hard-hitting research and innovative policy ideas to extend choice, competition and freedom in healthcare and education. This work continued in 2011.

Arguably the most important piece of research published

by the Adam Smith Institute in 2011 was Profit-Making

Free Schools by James Croft, which explored the untapped

potential of the for-profit independent schools sector.

Representing the first in-depth, empirical study of its kind

in the UK, the report comprehensively debunked the idea

that the profit motive compromises standards in education.

In fact, the opposite appeared to be true.

The report identified 489 mainstream for-profit schools,

serving more than 80,000 pupils. Perhaps contrary to

expectations, 83 percent of these schools were non-

selective. 80 percent were situated in urban or suburban

areas. Most strikingly of all, 41 percent operated on fee

levels less than, or on a par with, the national average per

pupil funding in the state-maintained sector. Yet even these

schools significantly outperformed the independent sector

as a whole.

The report didn’t just find that profit-making schools in the

UK were capable of providing low-cost, high-quality, non-

selective education; it also found that this was a growing

and increasingly competitive market, with huge potential

to increase capacity, and a strong incentive to do so. The

policy implications of these groundbreaking findings were

clear: far from being skeptical of profit-making schools,

government should embrace them and help more children

to escape the failing comprehensive model.

On the healthcare front, Miles Saltiel’s No need to flinch

laid bare the deficiences of the National Health Service,

analyzing World Health Organization data to show that

the NHS underperforms on both outcomes and value for

money when ranked against similar countries.

Chris Davies’ powerful reflection on four decades of NHS

care, Reforming the National Health Service, went further,

arguing that the NHS is fundamentally incapable of

serving its customers effectively. His radical blueprint for

reform would see the entire NHS estate privatized, with

taxpayer funding replaced by a national insurance fund

capitalized with the proceeds of that privatization, and

sustained by employer-employee contributions and user

co-payments.

Tom Clougherty’s popular think piece What a free market

in healthcare would look like went further still, imagining a

vibrant market completely free of government intervention

– and utterly unrecognisable from the healthcare sector as

it exists today.


ABOVE: Coverage of our profit-making schools report in the Guardian; the front covers of our reports on Reforming the NHS and Profit-making free schools; Tom writes in The Spectator on Lansley’s reforms; Allister Heath writes about our report in his editor’s letter in City AM.


Adam Smith in 2011Adam Smith (1723-1790) was the pioneer of modern economics. His great book, The Wealth of Nations (1776) explained the folly of governments trying to control and direct economic life, and the enormous gains that emerge from allowing people to trade freely with one another.

This is a lesson we must re-learn today. For when

individuals, and indeed countries, voluntarily engage in

commercial exchange, they do so because both sides

benefit. To maximise those benefits to humanity, we need

to encourage voluntary exchange, not restrict it.

Smith believed that a free, competitive economy was by

far the best way to help the working poor. He wanted

people to be able to use their own efforts and talents

to improve the lives of themselves and their families.

He deplored how important businesses – aided and

abetted by those with the political power – actually

promoted regulation as a way of keeping out

competition from such sources and preventing the rise

of outsiders.

Having lived through a major banking crisis in Scotland,

Smith did advocate banking regulation. But his concern

was only to promote honest dealing in the marketplace.

Provided that people traded openly and justly, and

competition was maintained, the most effective regulators

would be customers themselves. There is no need for

detailed technical rules beyond that.

Smith would also have regarded a government that spends

half the country’s GDP – and he was the inventor of that

concept – as the greatest tyranny. He saw taxes as another

way in which established interests manipulate the economy

in their favour and do down potential competitors. Taxes,

he thought, should be as low as possible; they should

encourage, not restrict trade; and they should be simple,

intelligible and convenient. So we can imagine what he

might have thought of a tax code that in Britain today

is now longer than The Wealth of Nations itself, and a

regulatory rulebook that is even longer.

When Smith’s ideas were put into practice by reformist

nineteenth-century governments, it produced the greatest

era of free trade, discovery and progress that the world has

ever known.

It is an approach we must rediscover – which is one reason

why the Adam Smith Institute published Eamonn Butler’s

The Condensed Wealth of Nations in mid-2011. Smith’s

original is written in a dense and archaic style which,

coupled with the book’s length and its many digressions,

makes it inaccessible for most modern readers.


The Condensed Wealth of Nations, by contrast, presents

Smith’s ideas in modern language, with just enough of

Smith’s examples and quotations to provide a sense of

colour, and with marginal notes to explain how today’s

economic concepts have developed from Smith’s early

ideas. It gives the same treatment to Smith’s other great

book, The Theory of Moral Sentiments, and still manages to

come in at just 83 pages.

The following quote does not actually appear in The

Condensed Wealth of Nations, but it does capture the

flavour of Smith’s thinking, as well as the principles that

guide the Adam Smith Institute:

“Little else is requisite to carry a state to the highest degree

of opulence from the lowest barbarism but peace, easy

taxes, and a tolerable administration of justice: all the rest

being brought about by the natural course of things.”

ABOVE: Dr Eamonn Butler with David Smith, Economics Editor of the Sunday Times and guest speaker for the launch of The Condensed Wealth of Nations; the front cover of The Condensed Wealth of Nations

“Smith believed that a free, competitive economy was by far the best way to help the working poor”


EventsThe Adam Smith Institute hosts some of the most popular events in Westminster. Our evening events bring together diverse audiences and influential academics and politicians to discuss policy and ideas. This year we have increased the number of seminars and lectures and started to film all our events to maximise the reach and impact of our events programme.

Seminars & LecturesIn January, Professor Steve Horwitz gave a lecture on ‘An

Austrian perspective on the great recession of 2008-2009’,

Dambisa Moyo, economist, spoke on ‘How the West

was lost’ and Dr Yaron Brook, president of the Ayn Rand

Institute explained ‘How to be a rational egoist’. During the

Spring we also held a debate on the Alternative Vote, while

Greg Clark MP, Mark Pennington and Tim Hellier talked on

‘The Future of Planning’ at an evening seminar.

The UK’s fragile economic situation was a focus for a

number of our lectures. Professor Kevin Dowd talked about

‘The Decapitalization of the West’ whilst Professor George

Selgin pointed the finger of blame at ‘The Anachronism of

State-Controlled Money’. Detlev Schlichter argued that all

paper money systems ultimately fail at his book launch,

hosted by the Adam Smith Institute, entitled ‘Paper Money

Collapse’. Dr Razeen Sally also delivered a fascinating

lecture on the shift of the world economy to emerging

markets and what this means for freedom. In December

we sponsored a discussion in parliament on how bad bank

regulation generates illusory profits to accompany our

report ‘The Law of Opposites’ by Gordon Kerr.

Chris Preble from The Cato Institute came to talk to the

Institute about “A libertarian perspective on foreign policy”

and in the Summer the Adam Smith Institute held a panel

discussion with the Free Society on “Education, freedom

and the State” with speeches by Toby Young, David Davis

MP, Terence Kealey and Tom Clougherty. Dr Tara Smith,

objectivist and professor of philosophy delivered a lecture

on ‘The Pursuit of Happiness – and the Tools Essential to

Attaining it”. On a less cheerful note, just before Christmas

we held a panel discussion on “2012: the end of the world

as we know it?” with Douglas Carswell MP, Jamie Whyte,

Alex Massie and Brendan O’Neill. Although the panel

tended to hold a rather pessimistic view on 2012 there

were some glimmers of hope to cheer the audience.

ABOVE: David Gauke MP, Freddie Cohen, John Redwood MP, Tom Clougherty and Allister Heath speaking at an Adam Smith Institute event at the Conservative Party Conference.


Patrons DinnersIn 2011 we continued the Institute’s tradition of holding

private dinners for our most significant donors and

supporters. Our guest speakers were Greg Hands MP,

the PPS to George Osborne, David Laws MP, Sir Roger

Douglas, the former Finance Minister of New Zealand, and

Lord Forsyth of Drumlean, the former Scotland Secretary.

All of our dinners are off-the-record and present a unique

opportunity to hear the most eminent political figures talk

candidly about the state of the economy and current events.

Party ConferencesThis year we focused on the Conservative Party Conference

in Manchester. We held three fringe events, all of which

were a huge success and well-attended. On the first day we

held a panel discussion on ‘The Individual v the State: The

Battle for lifestyle freedom” where Philip Davies MP, Dan

Hamilton, Alex Massie and Chris Snowdon discussed sin

taxes and increasing interference of the State into people’s

personal consumption and lifestyle choices.

Our most popular fringe event focused on ‘Wealth Creation

and the Coalition: An Agenda for Growth’. David Gauke MP,

John Redwood MP, Allister Heath from City AM and Freddie

Cohen, Finance minister of Jersey, debated the best ways

to kickstart growth in the UK in a lively discussion. We

also held a panel discussion on ‘Economic Growth and the

Planning System’ with Bob Neill MP, Steve Baker MP, Tim

Smith from Berwin Leighton Paisner and Tom Clougherty.

Parties & book launchesFollowing tradition, the Adam Smith Institute held its annual

Bloggers’ Bash just before Easter, with Tim Montgomerie,

Harry Cole and Douglas Carswell speaking to a packed

room of bloggers and Tweeters. Our summer boat party

was also well attended with a mix of students, supporters

and MPs enjoying an evening cruise along the Thames

despite the rain! We held two book launches this year.

We launched ‘The Condensed Wealth of Nations’ with a

drinks reception at which David Smith, economics editor

of the Sunday Times, gave a short speech on the many

merits of Eamonn’s book. We also held a triple book launch

for JP’s ‘What the Immigrant Saw’, Madsen’s ‘The Emerald

Warriors’ and Eamonn’s primer on Milton Friedman. In

December we held our Christmas Party at the St Stephen’s

Club with John Redwood speaking. The room was packed

and buzzing with MPs, journalists, supporters and students

dropping by to celebrate the end of another successful year

for the Adam Smith Institute.

ABOVE: Guest speaker Peter Stringfellow with Eamonn Butler at one of our student events; John Redwood speaking at the Christmas Party; Elizabeth Truss MP speaking at our student conference; and Dr Razeen Sally delivering a lecture on the shift to emerging markets.


StudentsThe Adam Smith Institute sees student outreach and education as a core part of its activity, and it runs through everything the Institute does – from its online and social media presence, to its publications, seminars and lectures. Few think tanks attract such a youthful audience. But the Institute also runs a variety of dedicated student programmes, which went from strength to strength in 2011.

The Next GenerationThe Next Generation is the Adam Smith Institute’s group for

the under 30s, which meets most months in Westminster.

Guest speakers this year fell into two main camps. First, we

had the ‘next generation’ of political leaders, with new MPs

Sajid Javid and Elizabeth Truss making the case for a radical,

free-market government, and MEP Syed Kamal talking

about his battles for liberty in the EU. Then we had three

speakers adressing controversial libertarian topics: legendary

club-owner Peter Stringfellow gave us his take on personal

freedom; SpikedOnline’s Brendan O’Neill argued the London

riots were ‘a mob made by the welfare state’; and drug

policy expert Steve Rolles advocated legalization. The Next

Generation also hosted a debate ahead of May’s Alternative

Vote referendum, which pitted No2AV’s Dylan Sharpe against

the IEA’s Mark Littlewood.

Independent Seminar on the Open SocietyThe Adam Smith Institute’s long-running conferences for

sixth-form students continued in 2011, with nearly two

hundred schoolgoers hearing robust, free market talks on

topics like ‘political interest and consumer power’, ‘public

goods and the myth of market failure’, and ‘externalities

and the profit motive’ from leading libertarian thinkers.

This year’s ISOS debate saw philosopher-turned-journalist

and media commentator Jamie Whyte face the Institute of

Ideas’ Patrick Hayes on the motion, ‘This house believes

there are no such things as free markets’. In our post-

conference survey, 96 percent of respondents rated ISOS

as ‘Good’ or ‘Excellent’.

The Liberty LecturesSeptember’s ‘Liberty Lectures’ conference was open

to more advanced students, and featured longer, more

in-depth talks and discussions – which were subsequently

made available on the Adam Smith Institute’s YouTube

channel. Tim Evans explored the proper role of

government, Jamie Whyte wondered how moral capitalism

was, Eamonn Butler explained how markets work, and

Andrew Lilico examined the real causes of the financial

crisis.

Freedom WeekFreedom Week, organized in partnership with the Institute

of Economic Affairs, was the jewel in the crown of the

Adam Smith Institute’s 2011 student programmes. 40


ABOVE: Students at our day-long ISOS conference; young people at a Next Generation meeting and students at the ESFL conference in Leuven.

students – more than ever before – came to Sidney Sussex

College, Cambridge, for an expenses-paid week of learning

about liberty and free markets. Topics covered included

the Austrian school of economics, public choice theory,

classical liberalism and social justice, and the history of

freedom. In addition to attending lectures and participating

in discussions, attendees had the opportunity to network

with fellow students, leading academics, and think tank

representatives – all in a relaxed atmosphere with nightly

social activities.

UK Liberty LeagueIn early 2011, three members of the Adam Smith Institute’s

Next Generation group independently set up the UK Liberty

League, an umbrella organization for classical liberal campus

groups across the UK. They already have more than 20

affliliated student societies and look set to continue growing

rapidly. In October, they held their first Liberty League Annual

Conference in London, with the Adam Smith Institute

as a sponsor. Head of Research Sam Bowman chaired

a panel discussion on ‘How the state harms the poor’,

while other sessions put the Chicago and Austrian schools

of economics head-to-head with one another, explored

whether Islam and libertarianism can be reconciled, and

asked ‘Where next for education?’ Freedom-fighting MP

Steve Baker gave the keynote address.

European Students for LibertyAnother great thing to come out of 2011 was the

establishment of European Students for Liberty, which

aims to help students acquire the skills, momentum,

and connections necessary to effectively advance liberty

across Europe. The Adam Smith Institute was one of the

main sponsors of its inaugural conference, which took

place in Leuven, Belgium, in November. The conference

attracted over 220 students from 25 different countries,

who enjoyed three days of lectures, workshops, and social

events. The conference was also broadcast live on the

internet.

“The Adam Smith Institute sees student outreach and education as a core part of its activity, and it runs through everything the Institute does”


Media OutreachMedia outreach is a central part of the Adam Smith Institute’s work. Our spokesmen regularly appear in print, and on broadcast and online outlets making the case for freer, more competitive markets and greater individual freedom.

CommentaryApart from promoting our latest publications,

representatives of the Institute have been commenting on

topics as diverse as tax simplification, the Eurozone crisis,

welfare reform, economic growth and education reform.

BroadcastWe regularly take part in interviews, debates and panel

discussions on a wide range of programmes both on

radio and TV. For example, in the last month (December

2011) ASI representatives have appeared on Sky News,

Bloomberg TV, Radio 4’s PM show, BBC News, BBC World

Service and a number of regional radio stations.

PrintTraditional print media is still one of our main sources of

media coverage, with our op-eds, report coverage and

comments featuring in national and regional newspapers

worldwide. The Institute has a number of strong writers,

which has ensured we produce a high number of comment

pieces in the papers. Our Head of Research, Sam Bowman,

was even given the privilege of writing the first op-ed piece

for City AM’s new forum section on the need for a new

capitalist revolution. In 2012 we will be seeking to set up even

more op-eds in order to maximise our impact in the media

and to better promote free markets and limited government.

OnlineThe Adam Smith Insititute blog remains the focus of our

online activity. However, we also write for a number of online

news sources and blogs to complement this. In particular,

we regularly write for ConservativeHome and the Spectator’s

Coffee House blog. Our reports and comments also often get

picked up by websites such as the Daily Mail Right Minds

blogs, Telegraph.co.uk and many specialist online media.

ABOVE: Eamonn on BBC News discussing public resentment of high taxes.

“Our spokesmen regularly appear in print, and on broadcast and online outlets making the case for freer, more competitive markers and greater individual freedom”


ABOVE: Tom discusses the need to cut public spending on Al-Jazeera; Madsen calls for the 50p tax rate to be scrapped on Sky News; Sam talks about the public sector strikes

on Al-Jazeera; Tom addresses the relationship between the media and politics on CNBC; Adam Smith Institute author Gordon Kerr promotes ‘The Law of Opposites’ on Bloomberg.


New Media EngagementThe Adam Smith Institute is proud of its active following and engagement on online and social media platforms. Its blog is one of the most popular think tank destinations in the world, and it is one of the most well-followed think tanks on Facebook, Twitter and Youtube.

AdamSmith.orgThe new Adam Smith Institute website, launched at the

end of 2011, is the latest chapter in our proud history of

online engagement. As the first British think tank with a

website, and the first with a blog, the Adam Smith Institute

has always led the field in quality online content. Our new

website is stylish and easy to navigate, and will set us in

good stead for years to come.

The website also sees the launch of a new “Articles”

section, which will host thoughtful extended articles on

liberty and the modern world that will consolidate its place

as the go-to destination for liberal thought in Britain. Since

its launch, it has hosted articles on topics ranging from the

impact of profit on schooling to private security provision in

parts of Kenya.

The BlogThe ASI blog remains the focal point of most traffic to our

website, and is the most popular think tank blog in the UK

by some distance. A group blog with regular contributions

by ASI staff and external writers like Tim Worstall and

Christopher Snowdon, it gives the Adam Smith Institute

a platform on which to comment on the day’s news on

our own terms. With the launch of our new website, the

blog has been rechristened ‘The Pin Factory’ – taking

Adam Smith’s example of the power of specialization and

cooperation as the inspiration for our group efforts.

Traffic to the blog has risen by about 50% over 2011, from

an average of around 2,000 visitors per day in 2010 to an

average of around 3,000 visitors per day in 2011. We are

aiming to increase this even more in 2012 by introducing

new writers and developing the blog’s voice so that it

becomes the go-to place for irreverent, sharp comment

from a libertarian perspective.

Facebook and TwitterAs the largest social network in the world, Facebook is

central to our new media strategy. Our fan numbers on

Facebook grew from 2,700 to over 5,000 during 2011,

and our Twitter followers more than doubled from around

2,750 to over 7,000. These two platforms are critical to

our continued growth and success as an organization,

because they deliver a high-quality readership and allow

the potential for rapid dissemination of our articles.

Both Facebook and Twitter allow us to engage with our

supporters and critics constructively, so that we can

answer questions, share interesting links and help to foster

the growth of an online community of liberty-minded

people in the UK and overseas.


YoutubeWhile we have had a presence on Youtube for several

years, 2011 was the year when we fully began to embrace

this platform. We have begun to record all of our events

and upload them as soon as possible, giving our events a

much greater impact and allowing people from all around

the world to watch them.

For example, a popular lecture by economist Detlev

Schlichter had over 100 attendees; but this is dwarfed by

the 1,300 people in Britain, the US and Europe who have

watched it on Youtube.

The potential here is enormous: as our Youtube channel

grows in subscribers (driven by Facebook, Twitter and blog

followers), it will allow us to leverage our events to give our

message of liberty a truly global reach. The unified strategy

of social media outreach that the Adam Smith Institute has

had so much success with in 2011 will help 2012 to be our

best year yet for online presence, confirming the Adam Smith

Institute as the think tank with the best online presence of

any UK think tank, left or right.

ABOVE: The new AdamSmith.org, our YouTube video channel, and our Twitter feed.

“The new Adam Smith Institute website launched at the end of 2011”


Supporting Adam Smith InstituteAs the accolades above suggest, the Adam Smith Institute

is one of the world’s leading think tanks. Its ideas don’t just

change minds; they also change the world.

We hope this Annual Review has given you a taste of what we

do. From our vital media commentary and our agenda-setting

research and events, to our unparalleled online outreach and

peerless student programmes, the Adam Smith Institute is

at the forefront of defending, and extending, freedom in the

United Kingdom.

It is essential work, and we enjoy every minute of it. But

nothing would be possible without the support and generosity

of our donors. We are an independent, non-partisan, non-

profit organization, and we do not accept any government

funding. So in order to make a difference, we need your help.

Now more than ever, it is vital that friends of liberty stand up

for the ideals they believe in, and empower organizations like

the Adam Smith Institute to take the fight to government, and

make the consistent, principled case for free markets and a

free society.

The one pledge we make to all our donors is this: we will make

your money work as hard for freedom as it possibly can. We

run a tight ship, and take pains to be as lean, efficient and

effective as possible. Many think tanks have much bigger

budgets, but few deliver as much ‘bang for the buck’ as the

Adam Smith Institute.

To find out more about supporting the Institute, go to

adamsmith.org/support-us, or get in touch with our

communications director, Sally Thompson (sally@adamsmith.

org). Donors receive hard copies of our research and books,

and get advance invitations to our events. Significant donors

regularly attend our much-loved Patrons’ Dinners, for off-the-

record discussions with leading political figures.

But most importantly, all of our donors get to be part of

a noble cause, a member of a movement that seeks to

bring freedom and prosperity to each and every individual.

Remember, our existence and our effectiveness depends

solely on the support of those who share our ideals. So please

consider showing your commitment to a free society by

making a donation to the Adam Smith Institute today.

Ranked

NO.8 THINK TANK OUTSIDE THE US

Ranked

NO.19 THINK TANK WORLD WIDE

Ranked

NO.1 IN EUROPE DOMESTIC ECONOMIC POLICY

Ranked

NO.6 THINK TANK IN WESTERN EUROPE

According to The Global ‘Go-To Think Tanks’, published by the University of Pennsylvania, Think Tanks and Civil Societies Program, January 18, 2011.

ADAM SMITHINSTITUTE

23 Great Smith Street London SW1P 3BL020 7222 4995 www.adamsmith.org

annual review 2011

Documents

adam smith institutes

fiscal policy

monetary policy

policy engineering

policy analysts

perpetual economic crisis

limited government

british government