ECONOMY – the high price o£ giving away control
We’ve seen that our, Scotland-sized, independent neighbours are all far richer than UK Scotland. The question that follows is why? Geography or resources? – Scotland compares favourably in those respects with Ireland, Iceland, Norway, Denmark and the rest of them.
Scotland has more natural resources than most countries. Are the people too stupid? Scotland has more top universities per capita than anyone and thus more soon-to-be graduates present at any one time than any of comparator countries. That’s a lot of talent to tap into. Indeed, Noble prize-winning economist Joseph Stiglitz cited high Scottish further education levels and lack of control over immigration as further reasons for independence.
A history of innovation, invention and scientific discovery that is a match for any country in the world. Close to the big European markets, islands and continental. The world’s most common second language. Yet, somehow, with all that advantage, Scotland is poorer than every one of our independent neighbours. As is, of course, the other devolved bits of the UK, Northern Ireland and Wales.
So, given all that, how on earth is Scotland so far behind? The principles of Occam’s razor would suggest the measurable differences in success probably, logically, therefore come from the biggest recurring variable, the biggest difference between them and Scotland– autonomy. They control their own economy and they’re richer. Scotland doesn’t, Northern Ireland and Wales, don’t.
Scotland’s independent neighbours each have their own different, distinct and tailored, economic strategies but, no matter what they do and how they do it, they all do better than Scotland, Wales and Northern Ireland where the economic strategy is done, for them, in London. Led by out-of-touch politicians in Downing Street.
Forty per cent of Scottish expenditure is decided by London, and seventy per cent of taxation decisions are also reserved. Even with all the unenthusiastic tinkering to devolved powers Scotland still doesn’t have control over a single important macroeconomic or industrial policy lever. The bespoke options available to Holyrood don’t compare to those in Dublin, Reykjavík, Oslo, Copenhagen...
The statistics show Scotland stagnates in the Union. The projections predict staying will only lead to falling further behind those independent neighbours. A smaller and older population by 2045. More poverty, more lives blighted. When blinkered Unionist politicians talk about ‘Barnett’ and ‘fiscal transfer’ they’re doggedly avoiding this painful reality.
