Are you a researcher with demonstrable expertise in understanding the financial system? Do you have a demonstrable interest in engaging with stakeholders, particularly politicians, regulators, and key actors from across the financial sector? Do you have a background within economics, finance, or systems dynamics? 

The successful candidate will report to Professor Iain Clacher, of Leeds University Business School. Funded by Baillie Gifford, the successful candidate will be part of the “New Capital Consensus: Driving Investment for a Better Society” Project, which is a collaboration between the Chatham House Sustainability Accelerator, FinSTIC (Financial Systems Thinking Innovation Centre), The UK Centre for Greening Finance and Investment (CGFI) and Radix.

The Problem

The investment system, and the institutions within it, pension funds, insurance companies, and asset managers, have historically been an effective driver of economic development by allocating trillions of pounds of capital for investment around the world. However, in more recent times this system has become ineffective in this critical function of providing capital to support long term investment in the real economy.

This is a result of overly complex systems having developed through time, with an undue focus on short-term performance, interlocking regulatory regimes, and misaligned incentives, that do not enable effective risk bearing by long term financial institutions. As a result, productivity and growth in the UK are low and the UK stock market is moribund. 

With significant amounts of investment needed to fund the transition to net zero and ensure there is a just transition, our current financial systems are not fit for purpose. Prior attempts have been made to address short-termism in markets, procyclicality, and so on, but the antecedents for the required system wide change were not present. Now, with the necessity to transition to a net zero, low carbon and climate resilient economy, the imperative for system wide change is now.

For any goal that focuses on 2050 to be successful, the reality is that capital must be reallocated at scale now, in a way that is not happening currently. This research will apply a systems approach to understanding the current investment system, its stocks, flows, and interrelationships, and identify the leverage points that will enable system-wide change to enable effective risk bearing. In doing so, it will facilitate the accelerated provision of the capital necessary to the real economy to embed system-wide resilience, support jobs, sustainable growth, increased productivity, and the transition to net zero.

To explore the post further or for any queries you may have, please contact: 

Professor Iain Clacher – Pro Dean for International, Faculty of Business

Tel: +44 (0) 113 343 6860, email: [email protected]

or

Rosie Hudson - HR Officer, email: [email protected]