Legatum Institute Research and Policy Impact
The Legatum Institute operates as a hub for research and policy development, focusing on trade, social welfare, and governance. By producing targeted reports and hosting independent commissions, the Institute seeks to influence national and international policy frameworks, particularly within the United Kingdom.
Trade Policy and the CPTPP
Following the 2016 UK referendum on EU membership, the Institute focused heavily on redefining the UK's global trade strategy. A pivotal moment occurred in 2017 with the publication of "A Blueprint for UK Trade Policy", authored by economist and trade lawyer Shanker Singham and colleagues. This paper advocated for the UK to seek membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a high-standard trade agreement between several Pacific Rim nations.
While the idea was initially met with skepticism, its influence grew over time. In a 2021 parliamentary debate, Conservative MP Steve Baker credited the Legatum Institute's Special Trade Commission and its 2017 paper with originating the concept of UK CPTPP membership. The UK formally applied to join the partnership in 2021 and successfully acceded in 2023.
The Institute's expertise in this area is further evidenced by the appointment of Crawford Falconer in 2017 as the UK government's Chief Trade Negotiation Adviser. Falconer previously served as the New Zealand Ambassador to the World Trade Organization and was a commissioner on the Institute's Special Trade Commission.
The Social Metrics Commission
Beyond trade, the Institute has played a significant role in redefining how social hardship is measured. In 2016, it hosted the Social Metrics Commission, an independent, cross-party body chaired by Baroness Stroud. The commission brought together data experts, political representatives, and organizations working directly with impoverished populations to develop a more accurate approach to poverty measurement in the UK.
In September 2018, the commission released "A New Measure of Poverty in the UK." This report proposed a methodology that included previously omitted factors, such as:
- Inescapable costs, including childcare.
- The specific financial impact of disability.
- Access to savings.
- The conditions of homeless individuals and those living in overcrowded housing.
The report's findings indicated that in 2017, 14.4 million people—including 4.5 million children—were living in poverty. This framework gained official traction when the Department for Work and Pensions (DWP) announced in May 2019 that it would develop official statistics based on this methodology. By January 2024, the DWP published its first "Below Average Resources" statistics, designating them as "Official Statistics in Development."
The Institute also utilized this modeling for advocacy. In Autumn 2021, Baroness Stroud and the Legatum Institute campaigned for the Chancellor of the Exchequer to maintain the £20 Universal Credit uplift, estimating that 840,000 people would be protected from poverty if the cut were reversed.
Other Policy Areas and Advocacy
The Institute maintains a broad research portfolio covering regulatory and social issues. It consistently advocates for regulatory reform and lower taxation, including analysis of tax policy shifts in the United States. Additionally, the Institute has published critiques regarding DEI (Diversity, Equity, and Inclusion) policies and ESG (Environmental, Social, and Governance) frameworks within the finance and business sectors.
In 2023, the Institute established the Sovereignty Unit. This unit promotes national sovereignty over multilateral institutions and has criticized the harmonization of European regulations, particularly in the realm of defense policy.
On the topic of migration, researchers at the Institute have argued that high immigration levels can hinder social integration. Specifically, Guy Dampier has called for more restrictive policies, such as extending the qualifying period required for individuals to obtain indefinite leave to remain.
Finally, the UK-US Special Relationship Unit works toward strengthening the economic bond between the UK and the United States, advocating for lower tariffs and closer trading ties.
Key Facts
- CPTPP Influence: The Institute's 2017 blueprint is credited with originating the idea for the UK to join the CPTPP.
- Poverty Metrics: The Social Metrics Commission's framework led to the DWP's "Below Average Resources" official statistics.
- Poverty Scale: 2017 data from the commission identified 14.4 million people in poverty, including 4.5 million children.
- Sovereignty: The Sovereignty Unit (est. 2023) advocates for national autonomy over multilateral regulatory frameworks.
- Trade Ties: The UK-US Special Relationship Unit focuses on reducing tariffs and enhancing bilateral trade.
| Focus Area | Key Initiative/Unit | Primary Objective |
|---|---|---|
| International Trade | Special Trade Commission | CPTPP membership and UK-US trade ties |
| Social Welfare | Social Metrics Commission | Modernizing UK poverty measurement |
| Governance | Sovereignty Unit | National sovereignty vs. multilateralism |
| Economic Policy | Regulatory Reform | Lower taxation and critique of ESG/DEI |
Frequently Asked Questions
How did the Legatum Institute influence the UK's entry into the CPTPP?
The Institute's Special Trade Commission published "A Blueprint for UK Trade Policy" in 2017, which advocated for CPTPP membership. This proposal was later credited by MP Steve Baker as the origin of the idea, leading to the UK's formal application in 2021 and accession in 2023.
What makes the Social Metrics Commission's poverty measure different?
Unlike previous statistics, the Commission's methodology accounts for inescapable costs like childcare, the impact of disability, access to savings, and the specific circumstances of those in overcrowded housing or experiencing homelessness.
What is the "Below Average Resources" statistic?
It is a set of official statistics in development published by the Department for Work and Pensions (DWP) in January 2024, based on the framework developed by the Social Metrics Commission.
What does the Sovereignty Unit advocate for?
Established in 2023, the Sovereignty Unit advocates for national sovereignty over multilateral institutions and opposes the harmonization of European regulations, especially in defense policy.
What is the Institute's position on immigration?
Researchers at the Institute, including Guy Dampier, argue that high immigration levels can impede social integration and have suggested more restrictive policies, such as extending the period required to qualify for indefinite leave to remain.