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FM's ambition for Celtic Lion economy
12/10/2007
First Minister Alex Salmond outlined his ambitions for a Celtic Lion economy to emerge in Scotland as he addressed the prestigious Council on Foreign Relations in New York today.
Mr Salmond set out his vision to transform Scotland's historic economic underperformance and replicate the success of Ireland's Celtic Tiger.
Mr Salmond said:
"Scotland is undergoing the most dramatic transformation of our expectations and is involved in a reassessment of our future. There is a determination to emerge from many years of economic underperformance and cultural timidity.
"Any conversation about Scotland's economic performance should begin with the acknowledgement that we live in a country with enormous assets - chief among them our people. We have a history and present reality of innovation, examples of educational excellence and individuals and companies succeeding in a competitive global market.
"And it is against this backdrop that our trend growth rate is so disappointing. Over the last 25 years, the Scottish economy has grown at 1.8 per cent compared to the UK's own 2.3 per cent. The difference may sound small, but over that period it represents an opportunity cost to the Scottish economy of billions of pounds.
"However we have everything it takes for a Celtic Lion economy to take off in Scotland. What we require is vision and leadership to enable us to make it happen. Ireland has shown what is possible and there is no reason why we could not match their tiger with our lion.
"The ambition I have set is that Scotland should aim to match the UK's performance by 2011. After that, I would like to see us do even better. Consider the growth of our small neighbouring European countries - 3.1 per cent over the same 25-year period, dramatically outperforming both Scotland the UK. We will look to these countries to learn and adapt for Scottish circumstances.
"Our nearest three neighbors - Norway, Iceland and Ireland - are respectively the first, second and fourth most prosperous countries in the world according to the UN Human Development Index. Ultimately, matching their growth rates, and the rates of other small EU nations, is paramount. It is these nations that are remarkably outperforming the U.K. Initially, though, matching the growth rate of the U.K. is the fist step. By growing as fast as the UK, Scotland's 10-year growth rate would reach 2.8 per cent, translating to an additional £9 billion to the economy.
"And my government is serious about achieving this. I have convened a Council of Economic Advisors similar to that in the U.S., comprised of preeminent economic experts in the public and private sectors. This independent body, which recently had its first meeting, reports directly to me, offering unfettered counsel on how to raise Scotland's sustainable growth rate and make Scotland one of the best places in the world to do business.
"The cumulative effect of my government's proposed targets and policies is that Scotland will be among the most business-friendly countries in Europe and one of the most competitive in the world.
"My message to the rest of the world is simple: Scotland is open for business and flourishing, an independent Scotland will be open for business and an even better place to do business. My hope for Scotland is that we will be honest about where we are and ambitious about where we can go. And, perhaps, as people now talk about the wonder of the Irish Celtic Tiger, within the next generation we can introduce the world to a new marvel - the Scottish Celtic Lion."