Foreign Perspectives

The basic argument of the Yes campaign is that it’s better that the people of Scotland are ruled by the people of Scotland i.e. that independence is a good thing by definition and they’re right. The basic argument of the No campaign is that there’s strength in numbers and they’re right too.

But which is actually best?

It’s certainly very easy to knock down the Yes arguments:

• the support from oil will be a lot less then the sums they are expecting not least because Alex seems to count every penny coming in as tax revenue rather than the 20% or so that would actually come in but even that’s from a much bigger base than he’ll have courtesy of various international agreements which divvy up the amounts based on population rather than land area.
• it certainly would be best for Scotland to continue to use the pound and the Bank of England but that just isn’t a runner so at best Alex will be stuck with his first plan B i.e. use sterling but outside a sterling-zone arrangement. Presumably the banks in Scotland wouldn’t be permitted to continue to print their own money as they do now so the Scottish notes would be replaced by Bank of England ones in this scenario.
• since an independent Scotland simply wouldn’t have the wherewithall to support the banking system, it seems certain that most, if not all, of their banks would have to relocate to England even aside from European laws requiring that. There’s going to be quite a hit to the economy and jobs should that happen. On a related note, the various investment companies based in Scotland are already preparing to move and, of course, you could hardly have National Savings (a branch of the UK Treasury) based in Glasgow anymore.
• the freebies (education, prescriptions, etc.) are mainly dependent on the oil revenue which is somewhat less than Alex seems to think it is or would be and, of course, that knocks the “oil premium” fund on the head too.
• defence industries ranging from Trident to loads of small and medium companies would almost certainly have to relocate because the MOD insists on having various key components made and assembled in the UK.
• the much lauded research facilities in the universities are going to have to find their funding elsewhere as the vast majority of the research institutes which fund them are UK institutions.
• Europe is something of a wildcard as nobody can really say what the outcome of negotiations might be at this stage but it seems unlikely to be plain sailing.

For the No camp, well the argument is that none of the above will happen if they win.

However, it’s not really so simple as that. As the Yes people say, it’s not so much the nitty gritty details but that Scotland should be run by the Scots. Which is grand for those at the top of the pile but not so good when you find (as happened just prior to them joining with England in 1600) that it takes twelve Scottish pounds to buy one English pound, that your job went south and your pension is pretty much worthless.