Prior to 1707 the island of Great Britain housed two separate kingdoms, the kingdom of England and that of Scotland, although both had been under the rule of the same monarch since 1603, they were separate with individual parliaments. However with the acts of union- which proposed the joining of the two kingdoms – passed and both were amalgamated forming the United Kingdom of Great Britain, the act also brought them together under the parliament of Great Britain. While a surrender of independence was unpopular in Scotland, more than 300 years later, Scotland has not fully given up her national identity and thoughts for independence.
With the approaching referendum, a crucial event which would define the future of Scotland, the viability of an independent Scotland is questioned. The objective of this essay is to argue against the proposed independence of Scotland, examining key economic, social and political reasons why Scotland should remain united. An independent Scotland is undesirable as it would be economically volatile, heavily depending on North Sea oil revenues. Upon independence, North Sea oil revenues would account for 10-20% of Scotland’s GDP (BBC 2013a), it would lose ?
7 billion it receives from the UK government yearly (The Telegraph 2014), and will be allocated its share of the UK’s ? 1. 4 trillion national debt. Coupled with this, public expenditure per head is substantially higher in Scotland than the rest of the UK (BBC 2013a).
However, Scotland boasts a wide range of sectors, it is a leading provider in renewable energy constituting 25% and 10% Europe’s off shore wind and tidal resources, 19% of it wave resource respectively and its food and drink sector accounts for 18% of its international exports, especially Scottish whiskey which experiences high demand overseas (Scottish government 2013a).
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In Great Britain, there were economic difficulties. For example, the decline of several industries led to high unemployment. In 1929, the Labour Party, which was the largest party in Great Britain, couldn’t solve the problems and fell from power two years later. A new government brought Britain out of the worst stages of the depression by using budgets and tariffs. Britain wouldn’t go ...
Oil reserves, as stated by White paper 2013, is forecasted to last well into the next half of this century, and an oil fund , similar to that of Norway is to be set up for future generations. Nonetheless, the wealth of Scotland and the figures should be looked at in terms of Gross National Product (GNP), because although the oil and gas and drinks revenues are high, a majority of this is owned by overseas stakeholders (The Guardian 2014).
With shrinking oil reserves and the volatility of oil prices, the government would possibly have to cut down on spending and/ or increase taxes to maintain economic stability. Furthermore the proposed oil fund would not be a viable course of action. Based on this, should appropriate policies be put in place, it should be able to sustain itself for a short period of time, however in the long run, with dwindling oil reserves and absence of an oil fund, it is unlikely that Scotland would be economically sustainable after separation therefore it should not be an independent country.
The Scottish government’s current plan for European Union (EU) membership is not a feasible course of action, it is most probable that a newly independent Scotland would be left in a vulnerable state, therefore it should remain part of the UK to continue with the benefits of EU membership. White paper 2013 states “Following a vote for independence, the Scottish Government will immediately seek discussions […] to agree the process whereby a smooth transition to full EU membership can take place on the day Scotland becomes an independent country.
[…] It will avoid disruption to Scotland’s current fully integrated standing within the legal, economic, institutional, political and social framework of the EU”. Scotland currently enjoys access to the biggest single market in the world and movement with little restrictions by its citizens within the Eurozone, furthermore, EU countries and the USA currently constitute the top five export destinations for Scottish products (Scottish government 2014) and it was recently announced that they would work to establish a transatlantic trade and investment partnership (Scottish government 2013b) this proves a massive opportunity for Scotland.
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Fifteen years have passed since the enactment of Republic Act 8479, otherwise known as “Downstream Oil Industry Deregulation Act of 1998”, but down to this day, Oil Deregulation Law remains to be a subject of disputes. The heightening tension is not only based on whether or not we should regulate or deregulate oil industry but is also founded on an important economic question: Should the ...
However, it is highly unlikely that an independent Scotland would be a full-fledged member of the EU within the 18 month period after a yes vote. Firstly, the government assumes that all member of the EU would vote unanimously for Scotland’s integration into the EU. Furthermore, the negotiations pertaining to EU membership are a tedious process which could take years to complete. As a result, Scotland and Scottish citizens would lose the benefits it enjoys as EU members, its trade with EU member states would be disrupted and Scotland would potentially be in a vulnerable situation hence Scotland should remain united.
An independent Scotland plans to form a currency union with the rest of the UK, this would potentially be a counterproductive policy, and thus it is in its best interest to remain a part of the UK. The Scottish government affirms it would retain the pound “using the sterling will provide continuity and certainty for business and individuals and an individual Scotland will make a substantial contribution to the sterling area” (Scottish Government 2013c).
Keeping the pound would not interfere with current business transactions and would not require transaction costs for Scotland and the rest of the UK (Scottish government 2013d).
However being in a currency union can amplify fiscal stress and increase both the risk and consequence of financial instability according to Carney (2014), also Scotland would be required to give up its independent monetary policy since forming a currency union does not work without close political and fiscal integration, something EU member state lacked thus leading to the Eurozone crisis.
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Work dominates modern life. Work can be satisfying, enjoyable and rewarding. Many of the difficulties which face several nations today arise from the fact that, over many years, a lot of people who want to work have been denied the chance to do so. Most employers treat their workers fairly. But some do not. Complaints about the way they were treated by their employer are rampant. Even the best ...
With this union Scotland gives up its newly acquires sovereignty (ibid), hence then term counterproductive, Scotland’s fight for independence is based on wanting autonomy from Westminster imposed policies, this union is likely to ensure that an independent Scotland is subject to policies determined by the bank of England. Moreover, Scotland assumes a currency union would be welcome by the rest of the UK, thus Scotland is better of a part of the UK with its current use of the pound.
Scotland’s independence would have negative social implications, especially concerning the area of higher education, staying a part of the UK would be more beneficial to Scotland. The Scottish government currently has control of policies concerning education in the country, but an independent government could reinforce it actions in improving education to eradicate poverty (BBC 2013b).
Currently the Scottish government imposes tuition fees on students from England, Wales and Northern Ireland, however, as en EU member, upon independence it would be legally obliged to them with free university education, and this would present a loss of income of ? 150m to Scottish universities (BBC 2014).
The absence of fees would likely result in an influx of students from the rest of the UK, meaning that Scottish students would potentially find it more difficult to get into university.
Also the universities would lose 26% of their overall research funding provided by the UK, which they are reliant upon (The Guardian 2013).
Based on this it is evident that the implications of Scottish independence would outweigh the benefits, therefore it should remain in the UK. As a nation Scotland has a right of self-determination, however based on the arguments presented above, it is unlikely to survive. With a reliance on oil revenue, the economy is unlikely to support the country in coming years due to the volatility of the oil market.
Its loss of UK funding and share of national debt would most probably plunge it into a deficit, affecting its economic growth. Its citizens are going to be affected by the spending cuts and higher taxes. The governments proposed agenda regarding EU membership is based on unlikely assumptions which would leave Scotland and its citizens in a vulnerable position, potentially having enormous adverse effects on the country’s economy.
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Only 30% of Ugandans have access to improved sanitation; however this low statistic has been highly attributed to culture, mindsets and attitudes of individuals. The cultural uprightness of the Ugandans has also been questioned as part of the root of the NRW problem and according to the Water Herald, high levels of water theft are likely to be positively correlated with high levels of corruption ...
A currency union would find Scotland where it was before independence, the Bank of England formulating monetary policy, as a result of Scotland ceding part of its sovereignty to the UK. Furthermore its higher education sector would be hugely affected, as it would be subject to a loss of significant funding it receives as part of the UK. This essay has presented key economic, political and social arguments regarding Scotland’s future as an independent nation and has concluded based on the arguments that Scotland would not be a viable independent nation, hence it should remain united the UK. (1,385 words)