As the 300th anniversary of the birth of Adam
Smith approaches later this year, Richard Muir, Deputy Chief
Executive of Glasgow Chamber of Commerce discusses how Smith's
ideas can help the modern business world face today's biggest
challenges.
Adam Smith is often dubbed the father of modern economics and
his ideas and principles still hold great relevance for Scottish
businesses today. Smith's central thesis, as outlined in his
seminal work "The Wealth of Nations" was that the invisible hand of
the market would guide individuals and businesses to make decisions
that would benefit society as a whole. This idea continues to
influence business practices in Scotland and around the world.
Smith's emphasis on the importance of education and the
cultivation of human capital is also of great relevance to Scottish
businesses. The ability to adapt and evolve in the face of changing
economic conditions is critical to long-term success, and a highly
educated and skilled workforce is key to achieving this goal.
Smith himself benefited greatly from education. The University
of Glasgow is proud of being his intellectual home. He was both a
student and professor at the university, and he returned toward the
end of his career as Rector. The University of Glasgow Adam Smith
Business School is marking the 300th anniversary of his birth with
a year-long celebration of his life, work and influence.
A range of tercentenary events are already underway, organised
by the University of Glasgow and by the Adam Smith Business
School. Several events are also in conjunction with the Chamber,
whose founding figures were deeply influenced by Smith.
Professor Graeme Roy, a professor of economics, at University of
Glasgow's Adam Smith Business School, says Smith's ideas are as
relevant today as they were in the 18th Century:
"What Smith was speaking and writing about is still so
influential and has real meaning for our times. He spoke about the
importance of commerce and trade, and the value of markets and
their propensity to do good for wider society. He examined in
detail the moral issues of his day, and they still resonate with us
in the 21st century."
Smith, I'm sure, would have approved of the major conference
held recently in Glasgow. 'Britain's Northern Superpower - Building
a Greater Glasgow' was organised by the Founder of 'Our Scottish
Future' the Rt Hon Gordon Brown, former UK Prime Minister and
Glasgow Chamber of Commerce.
There was much discussion about many of Glasgow's strengths such
as high-value sectors, firms, skills and business investment in the
city region, as well as the challenges facing business and the
city. The speakers agreed that the ambition and potential is
here, through innovation in life sciences, education and other
future high-growth, global markets. CBI Director General Tony
Danker highlighted examples of successful businesses and clusters
in Glasgow including the space sector which is building a global
reputation and receiving the backing of anchor institutions.
He told the story of Craig Clark - the Founder of Clyde
Space. There was next to no space sector in Glasgow when Craig
started out and the business and sector has grown organically. And,
today, Glasgow's businesses provide critical components to the UK's
space and satellite industry, making this a cluster in its own
right, but also a valuable connection between Glasgow and other
regions.
While we celebrate the tercentenary commemoration of The Father
of Economics and inspire renewed discussion about Smith's ideas,
let's also consider how his ideas from 300 years ago can help us in
the business world answer some of the biggest challenges we face
today.
This article was first published in The Herald on Wednesday
15 February 2023
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