Growth Commission

The SNP must rethink its economic model for an independent Scotland

Stephen Richard — Wed, 06 Oct 2021 08:45:14 +0000

The SNP must rethink its economic model for an independent Scotland

Primary Author or Creator

Laurie Macfarlane

Stephen Richard Wed, 10/06/2021 - 09:45

Additional Author(s) / Creators

Open Democracy

Date Published

Tue, 10/27/2020 - 12:00

Category

Economy

Currency

Type of Resource

Assessment report

Fast Facts

A critique of the Growth Commission's report. "Far from being an asset to the independence cause, the Growth Commission is its biggest liability. It’s time, as we say, ‘tae think again’."

Resource Address (URL)

https://www.opendemocracy.net/en/oureconomy/snp-must-rethink-its-economic-model…

Keywords

Language English

The SNP must rethink its economic model for an independent Scotland

Stephen Richard — Wed, 29 Sep 2021 14:16:16 +0000

The SNP must rethink its economic model for an independent Scotland

Primary Author or Creator

Laurie Macfarlane

Stephen Richard Wed, 09/29/2021 - 15:16

Additional Author(s) / Creators

Open Democracy

Date Published

Tue, 10/27/2020 - 12:00

Category

Economy

Type of Resource

Assessment report

Fast Facts

With the right plan on currency, economic model and transition, there is no reason why Scotland could not become a successful independent nation. But that plan needs to come from the 2020s, not the 1990s. And it needs to come from a broad cross section of civil society, not just business groups.

Far from being an asset to the independence cause, the Growth Commission is its biggest liability. It’s time, as we say, ‘tae think again’.

Resource Address (URL)

https://www.opendemocracy.net/en/oureconomy/snp-must-rethink-its-economic-model…

Keywords

Language English

Common Weal submission to economic data consultation

Stephen Richard — Mon, 06 Sep 2021 16:23:19 +0000

Common Weal submission to economic data consultation

Primary Author or Creator

Common Weal

Stephen Richard Mon, 09/06/2021 - 17:23

Alternative Published Date

February 2018

Category

Economy

Fast Facts

The progress of devolution has led to the Scottish Government assuming more direct control over economic policymaking in Scotland and recognition has grown that Scotland’s economy is in many ways distinct from the economies of other parts of the UK. Modern economies as a whole have grown more complex and more interconnected and ever more data driven.

Data has become an increasingly valuable resource and it is one which demands more attention, more scrutiny and more investment. Scotland therefore would greatly benefit from the creation of a single, dedicated Scottish Statistics Agency.

This consultation response to the Scottish Parliament’s Economic Data Committee outlines the case for such an agency and the key principles that it should be built upon.

More details

― International examples of data provision have shown that there are benefits to both a highly centralised model for a statistics agency but also benefits to a decentralised model whereby various departments gather deep but very specific data. Which model best suits Scotland is therefore open to discussion.

― Across Scotland, the quality of data provision is decidedly mixed. Often, the data can only be obtained via subsets of UK data which can mean that data sample sizes become smaller than may be appropriate for rigorous policy-making.

― However in other areas, particularly areas directly initiated by Scottish statisticians, the detail of data can exceed that which is found elsewhere in the UK.

― In many cases, the increased costs of data provision will be offset either directly via better tax collection (especially in the case of customs and borders) or indirectly by more efficient allocation of resources.

― There is scope for measuring metrics outwith “traditional” metrics such as GDP. Examples like measuring equality and life satisfaction could help drive development of a Wellbeing Economy.

Resource Address (URL)

https://commonweal.scot/wp-content/uploads/2018/02/Common-Weal-submission-to-ec…

Keywords

Growth Commission

statistics collection

Public data

Wellbeing economy

Language English

Common Weal Inverness and InverYes – Consideration of the Sustainable Growth Commission Report

Stephen Richard — Sun, 05 Sep 2021 10:38:38 +0000

Common Weal Inverness and InverYes – Consideration of the Sustainable Growth Commission Report

Primary Author or Creator

Common Weal

Stephen Richard Sun, 09/05/2021 - 11:38

Additional Author(s) / Creators

InverYes

Date Published

Sun, 09/02/2018 - 12:00

Category

Economy

Type of Resource

consultation response

Fast Facts

A study group comprised of members from Common Weal Inverness and InverYes undertook a detailed reading of the report published by the Sustainable Growth Commission and have collated their thoughts, opinions and recommendations ahead of attending the National Assemblies.

More details

Concern was expressed that the Sustainable Growth Commission appeared to be too heavily tied to a free market (neo-liberal) approach to economics. There is a misleading neo-liberal economic storyline that states that governments are the same as businesses and households and must act like them and manage their financial affairs by ensuring that they ‘balance the books’ and live within their means. A technical discussion which attempted to tease out the issues of the neo-liberal orthodoxy and its direct consequences on public finances that results in savage cuts to both welfare spending and infrastructure investment set the background for the discussion on Parts C and B of the report.

Resource Address (URL)

https://commonweal.scot/wp-content/uploads/2018/04/InverYes-Consideration-of-th…

Keywords

Growth Commission

Sustainable Growth Commissio

Public finance

Free market economy

Language English

A Silver Chain – A Critique of the Sustainable Growth Commission’s Monetary Policy Recommendations

Stephen Richard — Sun, 05 Sep 2021 09:17:12 +0000

A Silver Chain – A Critique of the Sustainable Growth Commission’s Monetary Policy Recommendations

Primary Author or Creator

Craig Dalzell

Stephen Richard Sun, 09/05/2021 - 10:17

Alternative Published Date

June 2018

Category

Currency

Fast Facts

On the 25th May 2018, after more than 18 months of preparation, the SNP-commissioned Sustainable Growth Commission made its final report – entitled Scotland – The New Case For Optimism – which has been presented as a series of recommendations on which could rest the economic, fiscal and monetary case for Scottish independence in a future referendum campaign. This document does not cover the full gamut of policies which would be directly affected by independence nor does it cover the full range of institution building required by a nascent independent state. Whilst the report discusses the creation of a “Central Bank” and associated regulatory body the discussion about the creation of other institutions such as energy regulators, customs and borders agencies and foreign and diplomatic services lay outwith its remit.

More details

― The Growth Commission report represents the first major work produced by the SNP on the topic of economy, currency and independence since the 2014 Scotland’s Future White Paper.

― Departing from the party’s position in 2014, the Growth Commission report drops the proposal of a formal currency union with the remaining UK (rUK) in favour of unofficially maintaining the Pound Sterling as the currency of an independent Scotland – this process is known as Sterlingisation.

― This paper highlights the severe shortcomings of this policy, notably the barriers raised by it towards launching an independent currency in the future – despite this being the stated aim of the report.

― In particular, the “six tests” laid out as a condition to transition to an independent currency appear to be actively designed to be impossible to meet. Several in particular appear to act to harmonise Scotland’s economy with that of the rUK and will make it difficult to actively diverge from policy decisions that will be made, then, by a foreign government without the input of Scottish politicians.

― Common Weal believes that the most “future neutral” approach to currency and independence (i.e. the option that leaves Scotland with the widest possible framework of policy options outwith currency) is to prepare to launch an independent Scottish currency so that it is fully operational by day one of independence.

Resource Address (URL)

https://commonweal.scot/wp-content/uploads/2018/05/A-Silver-Chain.pdf

Keywords

Growth Commission

Currency

Sterlingisation

Language English

Scotland’s Fiscal Future

Stephen Richard — Sun, 05 Sep 2021 09:10:32 +0000

Scotland’s Fiscal Future

Primary Author or Creator

Craig Dalzell

Stephen Richard Sun, 09/05/2021 - 10:10

Additional Author(s) / Creators

Common Weal

Date Published

Mon, 08/20/2018 - 12:00

Category

Currency

Scottish government

Type of Resource

Policy Paper

Fast Facts

Common Weal looks at Fiscal Policy and provides an alternative prospectus based on ensuring wellbeing and equality for the people of Scotland.

The quest for GDP and GDP Growth is not sustainable in a finite world and this should also be recognised by an independent Scotland. Metrics such as environmental impact, inequality and wellbeing are far more important and only by elevating them above the quest for “growth at all costs” can a truly fair and sustainable Scotland be created.

More details

― Sterlingisation – the fact that an independent Scotland would lack its own currency – is a root cause of many of the flaws of the underlying philosophy adopted by the Growth Commission.

― Sterlingisation demands that an independent Scotland must run prohibitively tight fiscal budgets and must continually “obsess” over the national public deficit.

― This means that Austerity may become an inevitable national policy despite of the Growth Commission’s claims that this is not desired.

― Particular fiscal rules set by the Growth Commission around the growth of public spending and the link between that growth and the growth of GDP may also result in the imposition of Austerity.

― Population growth may result in GDP growth but if the economy simply enlarges rather than changes shape then this will not result in growth in GDP/capita.

― If public spending growth is constrained to less than GDP growth then this may result in public spending per capita decreasing despite a real terms increase in public spending. Reduced public service provision per person is still Austerity even in a growing economy.

― Sectoral balances in the economy demand that if public sector deficits decrease then deficits must increase elsewhere. This may lead to increases in household debt – as experienced by the UK.

― Only by launching its own currency can Scotland take a more nuanced approach to its fiscal policy, balancing public spending against trade flows to ensure that household debt does not increase. This is impossible under Sterlingisation.

― Growth should not be measured as the sole metric of success in an economy. An approach that takes into account environmental carrying capacity, economic inequality and the wellbeing of citizens is more important.

― Though not recommended, the Growth Commission’s fiscal proposals could be implemented if Scotland had its own currency. Alternative proposals, such as many of Common Weal’s proposals for an independent Scotland, cannot be implemented under Sterlingisation.

― Therefore the most democratic and most “future neutral” approach to independence is to launch a currency by day one of independence then allow future governments the ability to manage fiscal policy as per their manifestos.

Resource Address (URL)

https://commonweal.scot/wp-content/uploads/2018/08/Scotlands-Fiscal-Future.pdf

Keywords

Language English