Institute of Economic Affairs - History

History

In 1945 Antony Fisher read a summary of The Road to Serfdom by Friedrich Hayek in the front of the April issue of Reader’s Digest. Later that year Fisher visited Hayek at the London School of Economics. The economist dissuaded Fisher from embarking on a political and parliamentary career to try to prevent the spread of socialism and central planning. Instead, Hayek suggested the establishment of a body which could engage in research and reach the intellectuals with reasoned argument. If the intellectuals could be convinced of the benefits of free-markets, the politicians would follow.

In June 1955 The Free Convertibility of Sterling by George Winder was published, with Fisher signing the foreword as Director of the IEA. Later that year, in November, the IEA’s Original Trust Deed was signed by Fisher, John Harding and Oliver Smedley. Ralph Harris (later Lord Harris) began work as part-time General Director in January 1957. He was joined in 1958 by Arthur Seldon, who was initially appointed Editorial Advisor and became the Editorial Director in 1959.

The IEA has also played an active role in developing similar institutions across the globe. A world-wide network of over one hundred institutions in nearly eighty countries has been created. All are independent but share in the IEA's mission.

Andrew Marr called the Institute "undoubtedly the most influential think tank in modern British history".

The Social Affairs Unit was established in December 1980 as an offshoot of the Institute of Economic Affairs, in order to carry the IEA's economic ideas onto the battleground of sociology. "Within a few years the Social Affairs Unit became independent from the IEA, acquiring its own premises." In 1986 the IEA created a Health and Welfare Unit to focus on these aspects of social policy.