Scotland in the UK

Generally I try and remain politically uncommitted. But, in the past few weeks, I’ve been surprised at how much the issue of Scottish independence has affected me. Despite a mental desire to feel nationalistic identity as unimportant, I feel deep down it really means a lot – and I hope Scotland votes to remain part of the UK.

scotland
Edinburgh – Clatie K

Essentially, I like the fact the United Kingdom is a union of different nations who celebrate both their uniqueness and common shared heritage. I feel Great Britain is stronger through maintaining this unique union. To split up and go it alone would feel like a regressive, backward step, which would accentuate division rather than the potential for oneness between the constituent parts.

I admire Socrates’ immortal quote:

‘Neither an Athenian or a Greek, but a citizen of the world.’

To me this is something to aspire for – to move on from sectarian nationalism to appreciate the greater possibilities of working together. I get joy from seeing groups with seek to bring nations together – from the United Nations to the ideals of a European union of nations.

I get more joy in thinking of myself as British than English. I prefer thinking of myself as British because it means we can celebrate a family of nations and this feels more to me than just a narrower ‘Englishness’. I also know this is perhaps a bit of anachronism – it seems the modern trend in the world is to split up and ‘go it alone’ (And, after all, I have to admit to being a secret member of the Yorkshire Independence movement, Oxford branch).

It does seem a shame to split up the United Kingdom. To me, it is hard to perceive Scotland as an independent separate country with borders and the like with England. I would hope Scotland still sees value in the union, even if they are at the same time proud of their Scottish identity.

The union of Scotland and the rest of the UK has lasted over 300 years. It has been a formidable union from the Scottish Enlightenment to the defeat of Hitler in WWII. The British Empire was bad in nearly every way, but I am proud of the fact that we gave it up and more or less moved towards a progressive democratic society with a strong welfare state. It is a unique union with surprisingly little internal division. For all the faults of the Westminster elite – how many nations offer a better standard of living? There is always corruption and poor politicians – no matter how small your governing nation. But, if you look at the rest of the world, the UK is a relatively good place to live in.

Mutual need

Whether we like or not, we have an indivisible mutual need to get on with our neighbours. John Donne wrote no man is an island, and this is particularly true in the modern world. Scotland has such a long tradition of merging with England, there are so many mutual ties that these cannot be passed aside. We benefit from Scotland and Scotland benefits from the rest of the UK. Just a few years ago, the whole UK banking system was on the verge of collapse. Scottish banks needed a massive bailout from the whole UK government. A real crisis was averted, but it was an example of how there is strength through union.

Independence means an independence currency

There has been a recent debate about whether prices will rise in Scotland after independence – this is an irrelevance – they may rise 0.5% they may stay the same. The real issue is whether the Scottish economy will be damaged by severing ties with Britain. The Eurozone is standing as a painful example of what happens when currency unions go wrong. I am fairly confident UK and Scottish unemployment would be close to double the current rate of 6.5%, if we had joined a currency union with Europe. An independent country without control over its – currency, monetary policy and fiscal policy is a essentially a vassal of the more powerful country. Some people worry about prices rising 0.5%, I worry about economies stuck in recessions with no ability to get out of it. Portugal, Greece, and Spain are currently economically failed nations.

It seems the strongest argument for Scottish independence is that Scottish people want to be free from Westminster influence and – for better or worse – be responsible for their own destiny. If this is the case, an independent Scottish currency and Central Bank is essential. What is the point of independence if Scotland shares –

  • The British currency,
  • Has monetary policy set by the Bank of England,
  • Relies on the Bank of England as lender of last resort
  • Has fiscal rules dictated by Westminster and the City of London?

This is the worst of both worlds.

In some respects a new Scottish currency will be a regressive step, – not least transaction costs will be a pain for people travelling between the two countries. But, at least the costs are more certain. A currency union or Sterlingisation would be a disaster for Scotland – maybe not straight away, but at some time. Scotland is lucky to have the painful failure of the Euro experiment to learn from. It would be a mistake to wave away problems with a rose tinted optimism – that is exactly how the Eurozone disaster was created.

Currency unions don’t work without very close economic and political union. A bad currency union only creates political and economic disharmony.

My fear is that Scotland will get independence and five years later will be bitterly complaining that rUK monetary policy is inappropriate. It will be inevitably bitter and tortuous arguments with both sides exasperated at each other. Just look at how much periphery Eurozone nations resent being told by the EU to implement austerity and ‘internal devaluation’

If Scotland choose independence – go the whole way, but don’t fall in between the gap.

 

Conclusion

It is easy to dislike the tone of the political debate on both sides, I worry at the strength of feeling generated. I don’t mind admitting, I would be reluctant to visit Scotland in the current climate. But, this is an issue that shouldn’t be decided on political point scoring or the temporary appeal of political leaders. It is about the best outcome for the future of Scotland and the UK. I do hope that Scottish people will vote to remain part of the UK. And we promise not to elect a Mrs Thatcher again!

Maybe I am wrong, maybe it doesn’t matter if Scotland becomes independent – maybe it’s a good thing for Scotland; perhaps if I lived in Scotland I would see things differently. I don’t know. Nations are always changing – such is life. Perhaps the only important thing is how we get on with people, whatever their nationality. However, spending the next five years squabbling over the national debt and national assets will probably not be the best way to promote a sense of oneness between Scotland and the rest of Great Britain. The union is worth preserving.

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