Claire Lombardelli on Economics and Its Image Issues
Claire Lombardelli, the lieutenant governor of the Bank of England, highlights a significant perception problem surrounding economics. It tends to be dominated by men from affluent backgrounds, and there are insufficient numbers of students, particularly women, studying it at the undergraduate level. “It’s pretty bad in every way,” she states plainly.
She expresses her frustration when discussing economics with people. They often associate it with dull textbooks and men in suits discussing stocks, ignoring how fascinating the subject can actually be. “The reality is millions of individuals making everyday choices. Do they grab coffee at Starbucks or Greggs? What car do they drive? There are so many pertinent questions tied up in economics,” she elaborates.
Having previously served as a high finance secretary before joining the OECD, Lombardelli is focused on addressing what she perceives as a democratic deficit in the UK. More importantly, she aspires to ensure that more women have access to study economics at local state schools, hoping to correct a long-standing gender imbalance.
She points out that economics education is often concentrated in private schools and is not being taught broadly enough. “Women don’t seem inclined to pursue it, nor do students from lower socioeconomic backgrounds,” she notes, suggesting there’s a real disparity in access.
Lombardelli grew up in Stockport, Greater Manchester, where she herself studied economics. When speaking with the Guardian about a new collaboration between the Bank of England and the University of Manchester, she humorously noted Stockport’s exports include herself and Deputy Prime Minister Angela Rayner, both of whom could help increase the number of teachers in economics in state schools.
Efforts to enhance the nation’s grasp of basic economics date back to the 1970s, sparked by a report from the HM School Inspector. It revealed a significant gap in understanding fundamental concepts and led to the creation of various economics networks funded by charitable organizations.
However, these initiatives have struggled without long-term governmental support, and many schemes have failed to outlast their initial phases.
The latest initiative aims to improve an alarming decline in qualified economics teachers that followed significant curriculum changes introduced a decade ago. These changes removed business and economics from core subjects, and even eliminated funding scholarships for aspiring teachers in these areas.
This contrasts sharply with the generous scholarships available for trainee physics and language teachers, leaving those interested in teaching business or economics without financial support.
Lombardelli doesn’t criticize the government’s focus on STEM subjects, acknowledging their importance. “It’s beneficial for the economy and society,” she mentioned. “Still, I believe economics is equally vital.” The bank’s new program intends to assist current teachers wishing to incorporate economics into their teaching repertoire. Approximately 20 educators have already signed up across 25 available spots in northwest England, an initiative that is currently in its pilot phase.
Reflecting on her own academic journey, Lombardelli credits her A-level studies in economics for giving her the confidence to pursue a spot at Oxford University, where she studied politics, philosophy, and economics, later earning a Master’s in Economics from the London School of Economics.
As Chief Economic Advisor of the Treasury through several Tory administrations, she transitioned to the OECD and now serves at the Bank, taking over from Ben Broadbent. Next week, she, along with the Monetary Policy Committee, will discuss UK interest rates amid concerns that U.S. tariffs could disrupt the global trading landscape and raise uncertainties for businesses. Many economic analysts have already adjusted their growth forecasts downward due to waning consumer confidence and a softer job market.
Prevailing expectations are that Lombardelli and her colleagues will vote to lower interest rates by 0.25% to a total of 4.25%, with aspirations to decrease borrowing costs to 3.5% by year’s end.
Before the upcoming meeting, Lombardelli anticipates explaining the significance of their decisions in a way that is accessible to everyone. “I was drawn to economics—like many curious teenagers—eager to understand how the world functions. It’s an essential subject for grasping social issues and understanding why wealth is distributed as it is,” she remarked.
During her tenure at the Treasury, she played a crucial role in developing the sugar tax alongside George Osborne and assisted in building a pension system during her OECD post in Mexico. “It’s an excellent field to study for personal growth, career opportunities, and practical, real-world solutions,” she concluded.
Economics continues to be perceived as a “male” domain alongside computer science, although other subjects are witnessing an increase in diversity. Lombardelli refutes the notion that economics has to be excessively mathematical. “Women study math, and students from varied socioeconomic backgrounds engage with it. It’s time for economics to embrace that,” she asserts. “Women are capable of tackling highly complex ideas.”
