Scotland, if independent, could improve its performance across 12 key pillars of its economy. There are a number of economic theories beyond the current one used by the UK. An investment-led economy would include laying down the foundations of a Green New Deal.
The report lays out ten packages of actions that Scotland could undertake – some of which could be started now, many of which would require independence – that would help move to an investment-led economy. Whilst this report is not in itself a prospectus for a Scottish “Green New Deal” these packages are all compatible with and would form the foundation of such a Green Deal.
The plans of action are:
- Create a monetary and fiscal environment conducive to investment. During the development phase of Scotland’s independence, it will be recognised that an independent currency and strong monetary institutions are vital and that cutting deficits suppresses the economy and pushes deficits onto private and household sectors.
- Strengthen the foundational economy. Scotland should prioritise core public needs such as energy, transport, infrastructure, and postal and communication services and should tackle growing problems in housing and food sectors with a much more interventionalist approach.
- Build a public investment model. Led by the Scottish National Investment Bank, Scotland should set up a series of National Companies tasked with driving investment in a strategic way across public, civic and private sectors. A public stock exchange would support businesses seeking equity and local banking networks would support small and local businesses.
- Produce an industrial strategy. Scotland’s industrial strategy would be designed to boost, develop and stimulate the productive economy and rebalance away from low-pay sectors. Key also would be anchoring strategies to maintain businesses in Scotland for the long term.
- Invest in human capital. From industrial democracy and collective bargaining, through workers’ rights and social security, a Universal Basic Income and more recognition of unpaid labour, encouraging entrepreneurialism and creating a welcoming immigration strategy not solely based on economic reasons there is much that Scotland could do to focus attention on how well we live in this country rather than just how much we produce for our employers.
- Implement a resource management strategy. Scotland’s resources are vast but many are exploited unsustainably or are being used in ways which benefit too few. Much better use of our land and marine assets would be prioritised.
- Decentralise economic policy. Though not on anywhere near the magnitude of the UK as a whole, Scotland still suffers from regional economic inequalities. Development Councils – a radical form of local government – would be used to boost local ownership of development policy and help to stop over-concentration of economic activity within Scotland.
- Reorient business support. Scotland should take a more strategic, value based approach to business support. Diversification of ownership models should be encouraged and the public sector should take an “entrepreneurial state” approach in many areas of the economy.
- Do no harm. Scotland must take climate change seriously. Small tweaks to the current system or delaying action beyond the next election is no longer tenable. A Green New Deal should be developed and enacted. Instead of debt-fuelled consumption, a sharing economy with a much more circular approach should be built. “Reduce, repair, re-use and recycle” should replace “take, make, use and dump”.
- Start with a boost. Setting up a new country will take a lot of work and will require a large sum of money invested to create the new services and infrastructure that Scotland currently lacks entirely or needs to vastly expand. A new country should not start life with a decade of deficit reduction at a time when the need for transformational investment will be at its more vital.
We believe that independence will be required to meet all of these goals and we believe that meeting these goals will be a reason to fight for independence. With these, we have created a vision of a Scotland to come which can not only meet the hopes and aspirations of its citizens but can bring them together in a shared enterprise of making all of our lives better.