Abstract

Adam Smith (1723–1790), the Scottish moral philosopher and political economist, established the foundational principles for modern economics and liberal internationalism. For students of economics and international relations, Smith’s intellectual contributions—particularly those outlined in The Theory of Moral Sentiments and The Wealth of Nations—are not merely of historical interest but serve as enduring frameworks for understanding markets, ethics, governance, and cross-border cooperation. This article emphasises the importance of incorporating Smith’s legacy into academic syllabuses and highlights the annual negotiation and mediation programme organised by St Mary’s Academy Ltd for students of Université Paris-Est Créteil. This programme features an educational visit to Smith’s birthplace, Kirkcaldy, and the Adam Smith Global Center, providing unique experiential learning opportunities. Drawing on academic literature, this paper contends that teaching Smith equips students with essential conceptual tools for understanding the ethical dimensions of economic systems, the moral limits of self-interest, and the mechanisms that underpin peaceful international cooperation.

Introduction

Adam Smith’s work remains a key intellectual foundation in both economics and international relations. His ideas go beyond narrow views of market behaviour, providing insights into the moral, institutional, and philosophical frameworks that support modern societies. While The Wealth of Nations (Smith, 1776) is often recognised as the start of classical economic thought, Smith’s less well-known yet equally significant work, The Theory of Moral Sentiments (Smith, 1759), presents a broader moral philosophy where empathy, justice, and civic virtue coexist with economic rationality (Haakonssen, 2006). The inclusion of Smith's philosophy in university programmes is more than just a homage to intellectual tradition; it is a practical requirement for developing analytical and ethical reasoning in future economists, policymakers, and diplomats. As Sen (2009) observes, Smith offers a “visionary bridge” between economic efficiency and human development, crucial for navigating today’s complex global environment.

Adam Smith and the Foundations of Economic Thought

Smith’s contribution to the development of market economics is immense. His analysis of the division of labour, market forces, and the role of self-interest offered a systematic explanation of how decentralised economies can achieve order and growth without central planning. His metaphor of the “invisible hand” (Smith, 1776, p. 456) illustrates how individuals, by pursuing their own interests within a system of fair competition and under the rule of law, can unintentionally contribute to the overall good. However, this concept is often misunderstood or oversimplified, frequently interpreted as an unconditional endorsement of self-interest or laissez-faire capitalism. In popular discourse and even some economic curricula, the "invisible hand" is often misinterpreted as implying that markets always self-correct or that the unregulated pursuit of profit naturally benefits society. In reality, Smith was deeply concerned with the moral and institutional boundaries of markets. He warned against monopolies, rent-seeking, collusion, and the neglect of public goods, and he emphasised that markets function optimally only when embedded within a framework of justice, education, and civic responsibility (Fleischacker, 2004; Kennedy, 2009). Ignoring this context distorts Smith’s nuanced vision, replacing his moral philosophy with a one-dimensional economic dogma. Recent scholarship emphasises that Smith did not advocate for unfettered markets, but rather for markets embedded within strong moral institutions. He warned against the dangers of collusion between business interests and state power concerns that remain relevant in today’s economic and political landscapes (Stiglitz, 2002). For economics students, Smith offers a template for ethical market design; for international relations students, his work suggests that cooperative trade relations are not just possible but desirable.

Smith’s Relevance for International Relations

Smith’s ideas are fundamental to liberal theories of international relations, especially in their focus on the advantages of economic interdependence. He rejected the mercantilist view that national wealth was a zero-sum game, instead contending that trade allows all nations to enhance their material well-being through specialisation and mutual benefit (Irwin, 1996). His outlook anticipated later theories of complex interdependence (Keohane & Nye, 1977) and supports the notion that commerce promotes peace rather than conflict.

Furthermore, Smith’s political economy is rooted in the moral duties of justice, beneficence, and prudence - virtues essential for diplomacy and global governance. His recognition that markets alone cannot create moral citizens provides critical insight into today’s international systems, where the erosion of trust and the rise of populism challenge cooperative institutions (Rothschild, 2001). By combining moral sentiment with institutional design, Smith laid the foundation for what would later become normative international theory.

Experiential Learning: The St Mary’s Academy Programme

In recent years, St Mary’s Academy Ltd has established itself as a leader in promoting applied educational experiences that combine theory with practical training. One of its flagship initiatives is the annual programme on negotiation and mediation organised in collaboration with Université Paris-Est Créteil. A key element of this programme is a field visit to Kirkcaldy, Scotland, the birthplace of Adam Smith.

Students begin by exploring modern negotiation theory and conflict resolution techniques. These sessions are supported by fieldwork and practical learning experiences in Kirkcaldy. During the visit, students tour the Adam Smith Heritage Centre, where they can immerse themselves in the spirit of the Enlightenment and trace history through the works and life of this renowned philosopher. Thanks to the hospitality of Dr. Gordon Povey, the General Director of the Adam Smith Global Foundation, and Ms. Justyna Majewska, students gain privileged access to historical resources, encouraging deep engagement with Smith’s legacy. This fosters meaningful reflection on the link between economic theory, moral philosophy, and historical context.

This immersive experience allows students to learn where Smith was born, educated, and developed intellectually. They also visit the Kirkcaldy Galleries, which showcase historical exhibits on the town’s economic growth and offer a broader view of Smith’s environment and the influence of 18th-century Scotland on his thinking. These encounters transform abstract ideas into lived experience, deepening students’ understanding of Smith’s contributions.

Rationale for Including Smith in Contemporary Curricula

Educators should purposefully weave Smith’s legacy into economics and international relations curricula for several reasons. First, Smith provides a comprehensive framework that links morality and economics, in contrast to many modern models that separate ethics from analysis (Paganelli, 2009). Second, his theory of justice based on mutual sympathy and impartiality anticipates contemporary ideas of distributive justice and fairness (Hanley, 2009). Third, Smith’s view of the state as a supporter of public goods such as education, infrastructure, and defence prefigures many principles of welfare economics and international development (Dasgupta & Hart, 1980). These insights are invaluable for students facing current issues like economic inequality, global trade disputes, and the role of international institutions.

Finally, exploring Smith within his own geographical and cultural setting, as enabled by the programme at St Mary’s Academy, deepens a critical understanding of economic ideas as historically rooted and socially dependent. As students examine the environment that influenced Smith’s intellectual growth, they are more likely to grasp the complexity of his ideas beyond simplified textbook stereotypes. The experiential component ensures students gain not only theoretical knowledge but also ethical awareness and historical appreciation.

Conclusion

Adam Smith’s contributions to economics and international relations remain both foundational and forward-looking. His integrated approach to human behaviour, institutional design, and moral reasoning provides essential tools for navigating the challenges of globalisation, economic governance, and diplomatic negotiation. The programme organised by St Mary’s Academy Ltd in partnership with Université Paris-Est Créteil exemplifies how experiential education rooted in historical context and ethical reflection can deepen student understanding and cultivate future leaders.

We must keep teaching and revisiting Smith, not just as a relic of the Enlightenment but as a current source of wisdom for today’s interconnected world. His legacy belongs not only in the library but also in the classroom, policy forums, and diplomatic negotiations.

References

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