LONDON – Prime Minister Keir Starmer of Britain has appointed economist Minouche Shafik, former president of Columbia University, as his chief economic adviser on Monday. This decision is part of a broader reorganization aimed at enhancing the government’s handling of a slow economy and a contentious political climate concerning immigration.
Starmer’s center-left Labour Party has faced difficulties in boosting economic development and controlling inflation, presenting Treasury chief Rachel Reeves with tough decisions regarding taxes and expenditures in the upcoming fall budget.
Shafik, who previously served as a deputy governor at the Bank of England, brings extensive experience from senior academic and civil service roles in Britain. Her recent role as Columbia University’s president was brief and challenging. She stepped down in August 2024, just over a year into her term, amid controversy over her approach to protests and campus tensions related to the Israel-Hamas conflict.
During her tenure at Columbia, Shafik encountered criticism from multiple sides: Some student groups condemned her decision to involve police in arresting protesters, while Republicans in Congress and others urged her to address antisemitism more forcefully.
Dave Pares, a spokesperson for Starmer, expressed the prime minister’s enthusiasm for Shafik joining the government, highlighting her “exceptional record when it comes to economic expertise.”
In addition to these changes, Starmer restructured his communications team and appointed Darren Jones, previously a Treasury minister, to the newly created position of chief secretary to the prime minister. This role involves overseeing the coordination of policy priorities.
The moves came as lawmakers returned to Parliament after a summer break that saw dozens of small but heated protests outside hotels housing asylum-seekers. The Labour government, which was elected in July 2024, has struggled to curb unauthorized migration and fulfill its responsibility to accommodate those seeking refuge.
The hard-right Reform UK party led by Nigel Farage has sought to capitalize on concern about thousands of migrants crossing the English Channel in small boats. Painting the asylum-seekers as a threat, Farage has pledged to deport everyone who enters the country without authorization should Reform win power in a future election.
Reform has only a handful of lawmakers in the House of Commons but regularly leads both Labour and the main opposition Conservative Party in opinion polls.
Starmer’s government says it is fixing an asylum system broken after 14 years of Conservative government and is working with other countries to tackle the people-smuggling gangs that organize the cross-channel journeys.
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