Tim Besley

Why do some countries build economies that can withstand shocks, while others remain trapped by weak institutions and political instability? This question has occupied Sir Tim Besley for much of his career.

At the London School of Economics, Besley is School Professor of Economics and Political Science and W. Arthur Lewis Professor of Development Economics. His work examines the institutions and political incentives that determine whether prosperity can take root and endure.

With economist Torsten Persson, he developed influential research on state capacity. Their work examined how governments acquire the ability to raise taxes, enforce laws and provide public goods. It helped place political and fiscal institutions at the centre of modern development economics. The research also offered a deeper explanation for why similar countries can produce very different economic outcomes.

That thinking has repeatedly informed Besley’s work beyond academia. He served on the Bank of England’s Monetary Policy Committee from 2006 to 2009. His tenure included the global financial crisis. He later became academic co-director of the Commission on State Fragility, Growth and Development. The commission examined why conventional development policies can fail where institutions and political settlements are fragile.

Tim Besley has also advised the European Bank for Reconstruction and Development on its transition mandate. His work helped shape a broader definition of a successful market economy. Competitiveness mattered, but so did governance, inclusion, resilience and sustainability.

The question has since widened. In 2025, Besley co-edited The London Consensus, bringing economists and policymakers together to consider what should follow the Washington Consensus. Recent research has also examined the relationship between economic growth and trust in government. The findings suggest that people’s experience of economic progress matters for political confidence.

At LSE, Tim Besley now directs the £10 million Huth Initiative for a New Political Economy. The initiative brings economics, politics and society into the same conversation. For Besley, that connection is central to understanding whether economic policy can actually deliver lasting prosperity.