In a landmark gathering that could reshape global economic policy for decades to come, world leaders, economists, and policymakers have converged on London to challenge the fundamental principles of neoliberalism that have dominated since the 1980s.
The End of an Era: Questioning Neoliberal Orthodoxy
The so-called "London Consensus" emerging from these high-level discussions represents a profound shift away from market fundamentalism toward a more interventionist approach. Participants are grappling with urgent questions about how to create economic systems that genuinely serve all citizens, not just capital markets.
This movement acknowledges what many have long argued: that the neoliberal experiment has failed to deliver widespread prosperity while exacerbating inequality and environmental degradation.
Key Pillars of the New Approach
- Strategic government intervention in markets to achieve social and environmental goals
- Renewed focus on industrial policy to build resilient economies
- Worker protections and fair wages as central to sustainable growth
- Climate action integrated into economic planning
- Global cooperation on tax fairness and regulation
The Political Landscape: From Trump to Global Coordination
The discussions occur against a backdrop of political upheaval, with Donald Trump's potential return to the White House casting a long shadow over international economic cooperation. This uncertainty has accelerated efforts to establish resilient economic frameworks that can withstand political volatility.
"We cannot afford to be passive observers of economic forces that are leaving millions behind," noted one senior European official participating in the talks. "The London meetings represent a conscious effort to shape our economic destiny rather than simply accept market outcomes."
Building Bridges Across Traditional Divides
What makes the London discussions particularly significant is the diverse range of participants. Former advocates of market liberalisation now sit alongside progressive economists, recognising that the old certainties no longer hold in a world of polycrisis.
The emerging consensus acknowledges that while markets remain powerful tools for allocation, they require careful steering to produce outcomes that benefit society as a whole.
The Road Ahead: From Theory to Implementation
As the London meetings continue, the critical question remains how these principles will translate into concrete policy. Participants are developing frameworks for:
- Coordinated international tax reforms to prevent race-to-the-bottom competition
- Green industrial strategies that create jobs while addressing climate change
- Social safety nets that protect workers through economic transitions
- Investment in public goods from healthcare to education
The ultimate test of the London Consensus will be whether it can mobilise the political will and institutional capacity to implement these changes at scale. With multiple global elections on the horizon, the window for action may be narrowing.
What emerges from London could define economic thinking for a generation, potentially marking the definitive end of the neoliberal era and the beginning of a more pragmatic, equitable approach to managing the global economy.
