London School Of Economics

, mottoeng = To understand the causes of things
, established =
, type = Public research university
, endowment = £240.8 million (2021)
, budget = £391.1 million (2020–21)
, chair = Susan Liautaud
, chancellor = The Princess Royal
(as Chancellor of the University of London)
, director = The Baroness Shafik
, head_label = Visitor
, head = Penny Mordaunt
(as Lord President of the Council '' ex officio'')
, students = ()
, undergrad = ()
, postgrad = ()
, city = London
, country = United Kingdom
, coor =
, campus = Urban
, free_label = Newspaper
, free = '' The Beaver''
, free_label2 = Printing house
, free2 = LSE Press
, colours = Purple, black and gold
, mascot = Beaver
, website =
, logo =
, academic_staff = 1,780 (2020)
, administrative_staff = 2,515 (2018/19)
, affiliations =

The London School of Economics and Political Science (LSE) is a public research university located in London, England and a constituent college of the federal University of London. Founded in 1895 by Fabian Society members Sidney Webb, Beatrice Webb, Graham Wallas, and George Bernard Shaw, LSE joined the University of London in 1900 and established its first degree courses under the auspices of the university in 1901. LSE began awarding its degrees in its own name in 2008, prior to which it awarded degrees of the University of London. It became a university in its own right within the University of London in 2022.

LSE is located in the London Borough of Camden and Westminster, Central London, near the boundary between Covent Garden and Holborn. The area is historically known as Clare Market. LSE has more than 11,000 students, just under seventy percent of whom come from outside the UK, and 3,300 staff. It had an income of £391.1 million in 2020/21, of which £32.8 million was from research grants. One hundred and fifty-five nationalities are represented amongst the LSE's student body and the school had the second highest percentage of international students (70%) of the 800 institutions in the 2015–16 Times Higher Education World University Ranking. Despite its name, the school is organised into 25 academic departments and institutes which conduct teaching and research across a range of pure and applied social sciences.

LSE is a member of the Russell Group, Association of Commonwealth Universities, European University Association and is often considered a part of the " Golden Triangle" of top universities in South East England. The LSE also forms part of ''CIVICA – The European University of Social Sciences'', a network of eight European universities focused on research in the social sciences. In the 2014 Research Excellence Framework, the school had the highest proportion of world-leading research among research submitted of any British non-specialist university.

LSE alumni and faculty include 55 past or present heads of state or government and 18 Nobel laureates. As of 2017, 27% (or 13 out of 49) of all Nobel Memorial Prizes in Economics have been awarded or jointly awarded to LSE alumni, current staff, or former staff, who consequently comprise 16% (13 out of 79) of all Nobel Memorial Prize laureates. LSE alumni and faculty have also won 3 Nobel Peace Prizes and 2 Nobel Prizes in Literature. Out of all European universities, LSE has educated the most billionaires (11) according to a 2014 global census of US dollar billionaires.

History

Origins

The London School of Economics was founded in 1895 by Beatrice and Sidney Webb, initially funded by a bequest of £20,000 from the estate of Henry Hunt Hutchinson. Hutchinson, a lawyer and member of the Fabian Society, left the money in trust, to be put "towards advancing its he Fabian Society'sobjects in any way they he_trustees.html"_;"title="trustee.html"_;"title="he_trustee">he_trustees">trustee.html"_;"title="he_trustee">he_trusteesdeem_advisable"._The_five_trustees_were_Sidney_Webb,_Edward_R._Pease.html" ;"title="trustee">he_trustees.html" ;"title="trustee.html" ;"title="he trustee">he trustees">trustee.html" ;"title="he trustee">he trusteesdeem advisable". The five trustees were Sidney Webb, Edward R. Pease">Edward Pease, Constance Hutchinson, W. S. de Mattos and William Clark.

LSE records that the proposal to establish the school was conceived during a breakfast meeting on 4 August 1894, between the Webbs, Louis Flood and George Bernard Shaw. The proposal was accepted by the trustees in February 1895 and LSE held its first classes in October of that year, in rooms at 9 John Street, Adelphi, in the City of Westminster.

20th century

The school joined the federal University of London in 1900, and was recognised as a Faculty of Economics of the university. The University of London degrees of BSc (Econ) and DSc (Econ) were established in 1901, the first university degrees dedicated to the social sciences. Expanding rapidly over the following years, the school moved initially to the nearby 10 Adelphi Terrace, then to Clare Market and Houghton Street. The foundation stone of the Old Building, on Houghton Street, was laid by King George V in 1920; the building was opened in 1922.

The 1930s economic debate between LSE and the University of Cambridge is well known in academic circles. Rivalry between academic opinion at LSE and Cambridge goes back to the school's roots when LSE's Edwin Cannan (1861–1935), Professor of Economics, and Cambridge's Professor of Political Economy, Alfred Marshall (1842–1924), the leading economist of the day, argued about the bedrock matter of economics and whether the subject should be considered as an organic whole. (Marshall disapproved of LSE's separate listing of pure theory and its insistence on economic history.)

The dispute also concerned the question of the economist's role, and whether this should be as a detached expert or a practical adviser. Despite the traditional view that the LSE and Cambridge were fierce rivals through the 1920s and 30s, they worked together in the 1920s on the London and Cambridge Economic Service. However, the 1930s brought a return to disputes as economists at the two universities argued over how best to address the economic problems caused by the Great Depression.

The main figures in this debate were John Maynard Keynes from Cambridge and the LSE's Friedrich Hayek. The LSE economist Lionel Robbins was also heavily involved. Starting off as a disagreement over whether demand management or deflation was the better solution to the economic problems of the time, it eventually embraced much wider concepts of economics and macroeconomics. Keynes put forward the theories now known as Keynesian economics, involving the active participation of the state and public sector, while Hayek and Robbins followed the Austrian School, which emphasised free trade and opposed state involvement.

During World War II, the school decamped from London to the University of Cambridge, occupying buildings belonging to Peterhouse.

The school's arms, including its motto and beaver mascot, were adopted in February 1922, on the recommendation of a committee of twelve, including eight students, which was established to research the matter. The Latin motto, , is taken from Virgil's Georgics. Its English translation is "to Know the Causes of Things" and it was suggested by Professor Edwin Cannan. The beaver mascot was selected for its associations with "foresight, constructiveness and industrious behaviour".

21st century

LSE continues to have a wide impact within British society, through its relationships and influence in politics, business and law. ''The Guardian'' described such influence in 2005 when it stated:

Once again the political clout of the school, which seems to be closely wired into parliament, Whitehall and the Bank of England, is being felt by ministers.... The strength of LSE is that it is close to the political process: Mervyn King, was a former LSE professor. The former chairman of the House of Commons education committee, Barry Sheerman, sits on its board of governors, along with Labour peer Lord (Frank) Judd. Also on the board are Tory MPs Virginia Bottomley and Richard Shepherd, as well as Lord Saatchi and Lady Howe.

Commenting in 2001 on the rising status of the LSE, the British magazine ''The Economist'' stated that "two decades ago the LSE was still the poor relation of the University of London's other colleges. Now... it regularly follows Oxford and Cambridge in league tables of research output and teaching quality and is at least as well-known abroad as Oxbridge". According to the magazine, the school "owes its success to the single-minded, American-style exploitation of its brand name and political connections by the recent directors, particularly Mr Giddens and his predecessor, John Ashworth" and raises money from foreign students' high fees, which are attracted by academic stars such as Richard Sennett.

As of 2006, the school was active in opposing British government proposals to introduce compulsory ID cards, researching into the associated costs of the scheme, and shifting public and government opinion on the issue. The institution is also popular with politicians and MPs to launch new policy, legislation and manifesto pledges, prominently with the launch of the Liberal Democrats Manifesto Conference under Nick Clegg on 12 January 2008.

2010 to present

In the early 2010s, its academics have been at the forefront of both national and international government consultations, reviews and policy, including representation on the UK Airports Commission, Independent Police Commission, Migration Advisory Committee, UN Advisory Board on Water and Sanitation, London Finance Commission, HS2 Limited, the UK government's Infrastructure Commission and advising on Architecture and Urbanism for the London 2012 Olympics

Craig Calhoun took up the post of director in September 2012. Its previous director, Judith Rees, is also chair of the school's Grantham Institute on Climate Change, an adviser to the World Bank as well as sitting on the UN Secretary General's advisory board on water and sanitation and the International Scientific Advisory Council (ISAC). She is also a former convenor of the department of geography and environment and served as deputy director from 1998 to 2004.

In February 2016, Calhoun announced his intention to step down at the end of the academic year, in order to become president of the Berggruen Institute. In September 2016, Bank of England Deputy Governor Dame Nemat (Minouche) Shafik was announced to replace Professor Julia Black as the school's director. Shafik began to lead the LSE in September 2017.

Following the passage of the University of London Act 2018, the LSE (along with other member institutions of the University of London) announced in early 2019 that they would seek university status in their own right while remaining part of the federal university. Approval of university title was received from the Office for Students in May 2022 and updated Articles of Association formally constituting the school as a university were approved by LSE council 5 July 2022.

Controversies

In February 2011, LSE had to face the consequences of matriculating one of Muammar Gaddafi's sons while accepting a £1.5m donation to the university from his family. LSE director Howard Davies resigned over allegations about the institution's links to the Libyan regime. The LSE announced in a statement that it had accepted his resignation with "great regret" and that it had set up an external inquiry into the school's relationship with the Libyan regime and Saif al-Islam Gaddafi, to be conducted by the former lord chief justice Harry Woolf.

In 2013, the LSE was featured in a BBC
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