Legatum Institute

Legatum Institute. The Legatum Institute is a London-based think tank established in 2007, originally as part of the international Legatum investment organization. It is known for producing the annual Legatum Prosperity Index, a global ranking of nations based on wealth and wellbeing, and for its research and advocacy on issues of economic growth, free trade, and social mobility. The institute has been influential in British politics, particularly during the Brexit negotiations, and has faced significant scrutiny regarding its funding sources and political alignment.

History

The institute was founded in 2007 by Christopher Chandler and Richard Chandler, the New Zealand-born billionaire brothers behind the Legatum capital investment firm. Initially operating from Dubai, its headquarters were moved to London to engage more directly with global policy debates. Under its first executive director, Sian Hansen, the organization began to establish its profile through the publication of the Legatum Prosperity Index. The think tank's influence grew notably following the 2016 EU referendum, when it became a prominent voice advocating for a "hard Brexit" and expanded its research output on international trade and constitutional reform.

Activities and publications

The institute's flagship publication is the Legatum Prosperity Index, which assesses over 160 countries using metrics spanning economic quality, business environment, governance, education, health, and personal freedom. Beyond this index, the institute publishes numerous reports, policy papers, and books through its various research programs, such as the Centre for UK Prosperity and the Special Trade Commission. Key publications have included analyses of post-Brexit trade policy, studies on modern slavery, and frameworks for measuring inclusive societies. It regularly hosts private and public events featuring senior politicians, including former Chancellor of the Exchequer George Osborne and Secretary of State for International Trade Liam Fox.

Policy influence and advocacy

The institute exerted considerable influence during the Brexit process, particularly through its "Plan A+" for the UK–EU relationship and its close relationships with key government figures like David Davis and Boris Johnson. Its Special Trade Commission, chaired by Shanker Singham, was instrumental in shaping debate around WTO rules and alternative trade agreements with countries like the United States and Australia. The institute's advocacy for deregulation, free ports, and a clean break from the European Union aligned closely with the agenda of the European Research Group and found traction within the Cabinet of Prime Minister Theresa May.

Funding and governance

The Legatum Institute is primarily funded by the Legatum Foundation, the philanthropic arm of the Legatum Group. While it does not publicly disclose detailed accounts, its funding has been reported to come entirely from this foundation, which is ultimately controlled by the Chandler brothers. The institute's governance has included a board of trustees and advisors featuring notable figures from business and politics. Its chief executive since 2020 has been Baroness Stroud, a former adviser to Iain Duncan Smith at the Department for Work and Pensions and co-founder of the Centre for Social Justice.

Criticism and controversies

The institute has faced sustained criticism from across the political spectrum, particularly for its role in the Brexit debate. Opponents, including former First Secretary of State Damian Green and members of the House of Lords, accused it of being a well-funded lobby group for a damaging hard Brexit. Its significant but opaque funding from the Legatum Group led to investigations by the Charity Commission for England and Wales regarding its political activities, though it retained its charitable status. Further controversy arose from its employment of individuals like Mats Persson, a former adviser to David Cameron, and its publications, which critics from institutions like the London School of Economics argued often presented ideological positions as neutral economic analysis.

Category:Think tanks based in London Category:Organizations established in 2007