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Washington DC February 2009

First Minister Alex Salmond at Georgetown University, Washington DCFirst Minister Alex Salmond

Facing the Global Economic Challenge

Georgetown University, Washington DC

Monday, February 23, 2009

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This year, 2009, is a landmark year. Each day's news puts the point beyond doubt. These are extraordinary and turbulent times.

Amid the turbulence of these economic times, this year we are also celebrating the lives of two people of enduring quality.

In Scotland it is the 250th anniversary of the birth of our country's finest son, the poet Robert Burns.

For America this year marks the bicentenary of one your greatest Presidents, Abraham Lincoln. A man whose spirit and example will light America's path for centuries to come. And a man whose name evokes, in the minds of your friends worldwide, the very highest image of America.

In honour of Robert Burns, Scotland is celebrating a Year of Homecoming. We are reaching out to a Scots Diaspora of 40 million worldwide, and a family of millions in the United States, to turn a threatened tourism downturn into a visitor boom.

Through Homecoming we are inviting everyone to renew their ties of culture and kin. To experience once more the true magic of Scotland.

Some of you may not know of the special regard that President Lincoln had for the work of Burns - the influence the poet had on the thoughts and words, perhaps even deeds, of one of the greatest Americans.

It is said that before entering politics, as a young lawyer, Lincoln always had with him a copy of Burns' works. Certainly, in the White House, he had his son recite Burns' poems to guests after dinner!

What we know for sure is that Abraham Lincoln had as his dearest wish to visit the birthplace of Robert Burns, if only he "could contrive to cross the Atlantic".

While we can't hope to emulate Lincoln in stature, we can achieve his unfulfilled ambition of crossing the Atlantic and making the pilgrimage to the homeland of the poet whose timeless message is: "That man to man, the world o'er, shall brithers be for a' that."

And believe me when I say it is an easier undertaking these days, and just as rewarding as ever.

So part of my mission here in America is to pass the invitation to each of you, and to all friends of Scotland, to join us for this special year of Homecoming.

Today I want to speak about the path Scotland is on, as we move towards a referendum on Independence next year.

I want talk about freedom and the very Scottish roots of principles that sit at the heart of your country's constitution - principles illustrated in the words of our Robert Burns and your Founding Fathers, and finding action and echo through Lincoln to the modern day.

And finally, I will set out why I believe this freedom - this independence and responsibility - is a crucial element in my nation's recovery from the current economic crisis.

There is no doubt the ties that bind our two nations are deep and strong. They are ties of family and people, of culture and ideas And, although Scotland is a small nation and America is large, it has always been, and remains a partnership of friends and equals.

President Woodrow Wilson, said that "every line of strength in American history is a line coloured with Scottish blood". And it has been noted that your 44th President, President Obama, can trace his own family back to Scotland and indeed to a Scottish King.

Scots or Scots-Irish have held office at the highest levels of the United States Government throughout the history of the republic. Senator Jim Webb put the number of Presidents of Scottish descent at 12, and so with President Obama that figure will move to a lucky 13.

Surveys suggest 27 million Americans claim Scottish ancestry, although census data indicates that actually only around ten million have a Scottish line of descent. I take it as a huge is a compliment that millions of Americans who are not of direct Scottish descent nonetheless claim an affinity with our nation. They are very welcome.

And I will be extending my Homecoming invitation to each and every one of these extra Scots over the next few days.

Today, we in Scotland - our politicians and our people - can draw our inspiration from you and your great nation.

It is time for change.

And for Scotland that means the idea that started with our declaration of Arbroath, that influenced your founding fathers, will come full circle with our own national independence.

The Scottish Government is committed to building an independent Scotland and holding a referendum on independence in the latter part of 2010. Because beyond the principle that is timeless, we know that the circumstances we face as a nation and a world today, make the case urgent and overwhelming.

I speak here today as the head of the Scottish Government. And yet the ancient nation of Scotland remains, for the time being, a member of the United Kingdom rather than a fully independent country.

Today, within the present constitutional settlement, we do our utmost to improve the lives of the people of Scotland. But we know that only with full responsibility for our destiny can we make Scotland an even better nation. Make our people more free, more prosperous and more secure.

That is our vision. And it is the same vision that resonates in your Declaration of Independence.

The immediate economic challenge is rightly the focus of international debate. These are unprecedented times. And it is why, in Scotland, we need a new approach.

Today we are striving, big and small nations together, to protect workers, families and businesses. To protect citizens who have been caught in the storm and are in desperate need of shelter - citizens like Henrietta Hughes, the homeless woman that President Obama met at a town hall meeting two weeks ago in Fort Myers, Florida.

Henrietta Hughes spoke for millions - not just in America, but in Scotland and around the world. And the lesson for me is that her plight and the threat to countless others, places a particular responsibility on the shoulders of politicians and leaders worldwide. Making do, the second best or half measure, is no longer good enough, given the scale of the global challenge.

The government I lead, and governments across Europe, recognise and are drawing heart and inspiration from the strong sense of purpose and urgency shown here in Washington.

I have been hugely impressed by what I have learned of America's new stimulus package.

However, the UK framework for devolution, now a decade old, does not give Scotland's government the ability to reflate the economy in the same way - or indeed in any way. At this time of greatest need we have one hand tied behind our backs - and decisions, more often than not, wrong decisions, taken on our behalf.

The truth is that the current arrangements are an anachronism. Not fit for the times, and not good enough for the people of Scotland.

Later this week, in London, I will meet with the UK Prime Minister, Gordon Brown, to discuss the economic crisis. At that meeting I will advance the case for new financial freedom for Scotland's government.

And in particular I will make the case for Scotland to have the same ability to borrow as other nations, and indeed the US States, have - in order to do our bit to inject demand and confidence into the economy.

From what I have seen from the action of your Congress and your President these past few weeks, I know that America 'gets it'. Many more do also.

Scotland's government 'gets it' too. We have the same positive attitude. We are ready to act. And in truth, we are frustrated that we do not yet have the tools do more now for our people, and more for the generation to come.

You are borrowing to invest because in this unprecedented economic environment it is the right thing to do.

And while you are investing to stimulate your economy, the UK government will require me to cut £500 million next year AND the year after from my government's programmes.

To give you a sense of the contrast, as part of your nation's stimulus package, the State of Maryland - a State with a population of 5.6 million compared to Scotland's 5.1 million - is to receive stimulus support of £2.6 billion.

As a result Maryland will be able to create or protect the livelihoods and employment of tens of thousands of citizens, while the UK government's budget cut puts at risk 7000 jobs in the teeth of the recession.

For these reasons, the case for independence becomes even more pressing, if we are to protect our communities and create the stimulus we need to see our economy grow.

I am here in Washington at an extraordinary time. Politically, your nation is embarking on a proud new chapter. The tests facing your society and your government are the toughest in decades. But you have the resolve and the vision to succeed and to lead.

Scotland faces similar challenges. But, for now, we do not have the freedom and the responsibilities that you do to respond.

That is why my government is committed to advancing the debate on Scotland's future. To seeking the responsibilities that Scotland needs now in adversity - and to succeed in the long term.

Because ultimately it is only through independence that Scotland can achieve its full potential. It is only with this freedom that we will have the ability to meet and overcome the great challenges of our time.

Fifteen of the twenty-five articles of the Treaty of Union that ended Scotland's independence related to the economy. And so, three hundred years later in unprecedented economic times, it is perfectly reasonable that Scotland would reassess its own constitution in light of today's pressing economic imperatives.

It is time for a new relationship. It is time for a Scottish Parliament with the ability to respond to the global economic challenges and protect the interests of our people.

This is a pivotal moment, for our economies and for our democracies.

Our shared mission is not just to protect jobs and promote recovery. It is to lay the foundation for a new, fairer economy - and a fairer, stronger society.

In Scotland, you have a partner that shares your vision, shares your ambition. And a partner willing and ready to work with you to help build a better world and a better future.

Our responsibility is not just to secure the prosperity of this generation. It is to do what is needed to ensure the prosperity of the next generation, and those to come.

For Scotland that means independence.

Page updated: Tuesday, February 24, 2009