Lawyers contribute £1.25 trillion to global economy

The world’s 20 million lawyers, paralegals and support staff contribute $1.6 trillion (£1.25tn) a year to the global economy, according to the first comprehensive study on the social and economic impact of the legal profession published today. The International Bar Association’s Impact Report also identifies strong correlations between the rule of law and quality of life - and highlights the dangers of erosion.

However the report identifies a 'perception gap' on the issue: only 54% of the general public believe lawyers have a positive economic and social impact, against 78% of legal professionals themselves.

The legal services sector’s $1.6tn contribution to global annual GDP is made up of $787bn in legal service revenues, $191bn of tax contributions and $637bn of ‘ecosystem effects’ in areas such as administration and broader economic systems.

Where the rule of law is upheld, countries see benefits from legal checks and regulations in areas including government policymaking, environmental standards and economic growth, as well as education, health outcomes and human rights.

According to the report, a robust rule of law can help countries to achieve: a higher life expectancy; 30% more girls completing secondary education; 53% less pollution;  fewer youths not engaging in education, employment or training; and greater protection of minorities including LGBTQI+ communities.

Almudena Arpón de Mendívil, IBA president, said: ‘This landmark study demonstrates, for the first time, in a comprehensive manner, the true contribution of the legal profession through its sustaining of the rule of law. It shows how effective legal systems, supported by robust and independent legal professionals, can limit the overreach of governments, whilst also supporting economic growth, promoting innovation and education, and combating inequality.'

However she warned that the rule of law is under threat in many parts of the world, 'including through subtle attrition in many countries with democratic governments'.

Arpón de Mendívil called on the profession to do more to educate the public about the rule of law as well as denouncing examples of lawlessness.