The History of LSE

The History of London School of Economics

The London School of Economics and Political Science, known as LSE, is a university based in the London Borough of Camden and Westminster with a rich history of nearly 130 years. LSE currently ranks as the 46th highest rated university in the world and the 3rd highest rated within the UK!

LSE specialises in the field of social sciences and has been highly successful, being widely regarded as the best university in the world for the study of economics and political science. This guide will cover LSE’s origins and how it developed into the world renowned university it is today.

The Founding of LSE

The London School of Economics was established in 1895 by four individuals of the Fabian Society with the initial aim of educating Britain’s political and business elite. The founding of LSE was possible due to the funding provided from philanthropy and through donations to the Fabian Society.

Key Figures in the Establishment

The Fabian Society is an organisation established to advance the principles of democracy and promote greater equality. Four members of the Fabian Society; Sidney Webb, Breatrice Webb, Graham Wallas and George Bernard Shaw met to found a new school that would further establish Fabian aims in society. In October 1895, London School of Economics opened, initially operating as a night school.

Early Vision and Mission

LSE was established with the aim of bettering society and to focus research on issues such as poverty and inequality. Sidney and Beatrice Webb used the curriculum of Paris institution ‘Science Po’ to form the educational programme at LSE which covered the full range of social sciences. Additionally, from the very start, women were accepted into LSE courses alongside men.

LSE in the 20th Century

At the turn of the 20th century, LSE became officially recognised as the Facaulty of Economics within the larger University of London. The school’s library became a popular meeting place for the Fabians and was also the first meeting location for the Suffragettes movement.

Pioneering Research 

Under leadership of William Beveridge who was Director of LSE from 1919 to 1937 the study of economics at LSE flourished and modern economics emerged; ‘the study of human behaviour as a relationship netweem emds and scarce means which have alternative uses’. Beveridge would go on to lead Britains welfare state and create the National Health Service.

In 1921, Lilian Knowles was appointed as the first female Professor of Economic History and in 1938, the school’s first black academic, Arthur Lewis was appointed assistant lecturer. Lewis went on to win the Nobel prize for pioneering economic research, focusing on the problems of developing countries.

LSE During World War II

Although not very active during the first World War, World War severely impacted the London School of Economics. As male students left to join the war effort, female students outnumbered men for the first time and as staff also left, the school was forced to shut. Additonally, in 1939 LSE was evacuated to Peterhouse College in Cambridge amidst the bombing in London. In total, 88 former students lost their lives in the conflict.

In the 1950s, the Department of Social Policy was established and, in 1964 the Department of Social Psychology was created. The quality of research at LSE was of particular focus in the latter half of the 20th century and in 1986, this was judged to be outstanding. 

LSE’s Influence in the 21st Century

In 2002, LSE applied to the Privy Council for the power to award its own degrees, instead of through the University of London. The application was granted in 2007.

Looking ahead, LSE continues to expand its London campus and, in 2014, it opened the Saw Swee Hock Student Centre, its first new building in over 40 years.

LSE continues to produce outstanding research which has been globally recognised and currently sits at 8th in the world for the study of economics and 2nd in the world for the study of political science.

Current Challenges

In 2011, allegations were made against Director Howard Davies regarding accepting donations from the Libyan government in return for favourable treatment. Davies subsequently resigned as Director.

In 2023, a professor who had worked at LSE for over ten years resigned due to the university’s systemic mishandling of sexual misconduct cases. After five formal complaints and nine informal complaints were made against an LSE faculty member an investigation was opened, however the panel did not uphold the allegations and the individual returned to teaching at the university. This decision has brought about further criticism and complaints regarding their handling of such cases.

Forward-thinking Initiatives

In 2020, LSE reaffirmed its commitment to advancing social sciences through education and research. The school continued to focus on addressing societal challenges and expanding its research output in social sciences, aiming to make a global impact. This included strengthening in-person education on its London campus and establishing initiatives to enhance its world-class reputation in areas like economics and political science.

Also in 2020, LSE launched the Inclusion Initiative which aimed to bring together teaching, practice and research to create a more inclusive environment. Three years on, the university feels it has made strong progress in this regard.

Looking to Study at London School of Economics?

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Our experts can help you identify and showcase the London School of Economics’ values, and effectively communicate your accomplishments and potential contributions to the admissions committee. 

For more information on how Dukes can assist with your LSE application, please visit our private UK admissions consulting page. Alternatively, you can contact us here, and we can help you submit a winning application.