Rationale
The UCL Centre for New Economic Transitions (CNET) brings together leading economists, political scientists, sociologists, and historians to shed new light on future trajectories of transitions in modern economies. The Centre’s research focuses on four structural transitions: socio-economic, technological, institutional, and environmental.
The mounting levels of income and wealth inequality within nation-states have brought the issue of income distribution “back from the cold” after a long period of neglect in academic and public debates. Though the global income distribution is increasingly more equal, overall, due to the global middle class gaining momentum, the stark separation between wealthy “capitalists” and poor “workers,” which has accurately described societies for centuries, now fails to depict the world we currently live in. With individuals increasingly earning from multiple sources of income nowadays, we must consider a redefinition of the very concept of socio-economic classes. Accordingly, new cleavages are emerging, reflecting differences in identities and beliefs. Understanding the rise of new marginalised groups, as well as their access to opportunity, deserves greater attention. These stylized facts lay the foundations for a socio-economic transition which has no precedent in the history of society.
The digital revolution is at the heart of a new technological age that is shaping business dynamics, market structures, and the very future of work. While globalisation is driving employment and growth in the developing world, in developed countries new technologies threaten traditional jobs in all industries. To halt the dominance of monopolistic superstar firms and to ensure that automation increases skills and enriches work experience, social scientists need to think about how to make this technological transition as smooth as possible. Striking the right balance between state intervention and market deregulation is at the core of this debate.
The changing shape of politics around the world demands that we rethink how politics and economics interact. The recent rise of populist movements and democratic backsliding in many developed nations is just one example of the structural transitions that are in motion. The changing political landscape calls into question what gains can be perceived from accelerated economic and financial integration (read un-restrained globalization), and economic and financial reforms more broadly, in both emerging and advanced economies. European integration is, in particular, under threat, due to the European sovereign debt crisis, Eurosceptic developments such as Brexit, and the dismantling of democratic norms in some Central and Eastern European member countries. Regional divides (based on differences in tangible endowments but also in identities and values), both within and between countries, and migration dynamics are some of the driving forces behind this modern political, or more broadly defined, institutional transition.
An environmental sustainability transition acknowledges that resources are finite and should be used for human well-being. To this end, having a long-term perspective in managing these scarce resources is imperative. Economic, social, and environmental issues are different facets of the same sustainability challenge. While digital technology has had many benefits for the environment, we must also recognise that the heavy fuel consumption demanded by data centres poses a lingering threat to it. Understanding the balance between the economic and environmental impacts of digital technologies is critical for ensuring sustainable development. Moreover, social scientists must conceptualise new growth regimes which depart from the fossil-based economy, and which include sustainability as the new measure of performance and wellbeing.
With a long history of research on the transitions of post-socialist countries from planned to market economies, and within a new context where, to use Branko Milanovic’s words, capitalism is “alone,” but it comes in varieties, the UCL Centre for New Economic Transitions is in a prime position to provide fresh perspectives on the new transitions currently in motion in modern capitalist economies and beyond. With a comparative approach, strong methodological, discipline and interdisciplinary based foundations and expertise, and a global scope, the Centre is a leading interdisciplinary research hub for the significant challenges of societies in the 21st Century.