The Worst Small Country in the World?

Jack will be disappointed. It seems that despite all the marketing boasts which greet passengers at our airports, Scotland might not be the best (small) country in the world after all.

The Federation of Small Business has produced a report comparing Scotland to 10 other countries with fewer than nine million people, including Norway, Iceland and the Republic of Ireland. The measures compared included data on economic performance, employment rates, health and education. Scotland's poor life expectancy was a major factor in coming bottom.

In socio-economic terms, Scotland is like the curate's egg. The wealth enjoyed by Edinburgh, West Lothian, Perthshire and Aberdeen is not matched in much of west central Scotland. There's no doubt that perceived poor life opportunities and a general lack of care for personal wellbeing is a huge factor in our less than optimal economic performance. Nicolas Crafts of the London School of Economics sketches it starkly when he estimates that if Scotland simply matched English life expectancy, our GDP would increase by over 20%.

However, Scottish GDP is already fairly high, reaching £111bn once oil is factored in (this takes public spending as a share of GDP down to c. 41%, in contrast to the oft-cited figure of 50%). These figures would, on the 2003 OECD figures, make an independent Scotland the 8th richest country in the world per capita, sandwiched in between the USA and Sweden. Admittedly, a relatively static population massages the GDP per head figure somewhat, but you get the idea. Problems we may have, but a basket case we certainly are not.

There's no need for us to plunge into a collective national gloom over these indicators. Sure, they make for pretty grim reading, but the opportunity for us to do better is there. A number of measures can be taken to improve growth and help rebalance our population profile, such as cutting business rates and reducing the burden of graduate debt. However, one of the single most significant measures we could take is to improve the link between taxation and public spending, by introducing fiscal independence.

We're not a poor country, nor are we subsidised by anyone else. No-one holds us back, and no-one will prevent us in the longer term from taking the actions that the other independent nations seem to be able to use to deliver better life outcomes for their peoples. Taking greater responsibility for our own affairs, on both personal and governmental levels, is surely the best way to deal with our unique set of national strengths and weaknesses.


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Devil's Kitchen - The Best Wee Country In The World?
Pat Kane - Scotland Is Unwell