Economists are vital to government but have to make an effort to get themselves heard and listened to. Here’s how they should go about it
Economics as a discipline is fundamentally about ways to allocate scarce resources. Governments are typically either spending the public’s money or are asking (or forcing) citizens and businesses to spend their own time and money in ways deemed to serve the public good.
In a democratic society, it is essential that such decisions are transparent and consistent and explained in ways that enable governments to be held to account.
Therefore, economists are true friends of good government and democracy, whether or not you regard them as proper scientists, and whether or not you regard them as dismal.
But how can economists working in the government machine make themselves relevant to politicians and those that help them make decisions? Based on my own experience as an economist in government, these are my tips on how to be taken seriously by ministers.
First, you need to head off the ‘two economists, three opinions’ cliché by sorting out your theories in advance. Where there are legitimate scientific differences, these should not be allowed to become the focus of the debate.
Academics and think-tanks should be engaged as intellectual allies.
Approach what you are doing in a way that leads to influencing a policy decision – not carrying out research for its own sake. That means focusing on the main uncertainties and how they can be resolved. It often means accepting that the data are ‘good enough’ and providing advice on the basis of incomplete information.
Visibility is important – you need to get out and about outside Whitehall as well as attend the vital departmental meetings.
Use language that is easily understood, avoiding jargon, particularly when arguing a point.
Be seen as part of the decision-making process in the department, focusing on value for money and working closely with finance directors.
Every major organisation, whether it likes it or not, needs a finance function. Tying economics to the use of public money gives it a natural place in the decision-making process and thus makes it harder to keep the economist out of those important meetings.
Withstand pressure from policy colleagues/politicians to change your views just because they are unpopular – but be prepared to change your views if new evidence becomes available or an alternative interpretation of the current evidence has been developed.
Insist on proper evaluation of policies, that is, a long hard look after the event on their effects. Politicians tend not to be interested in this unless you are looking at something done by the previous government. Evaluation gets easily forgotten but without it effective learning is very difficult.
There it is. It might not win you a popularity contest. But if a civil service economist is loved by all policy makers, he or she is definitely not doing their job properly.
Vicky Pryce is a former Whitehall economist and current senior managing director at FTI Consulting. Her paper, Dismal science? Is economics influential enough in decision-making? is available at www.institutefor government.org.uk
