AN independent Scotland could be among the top 10 “most inclusive advanced economies” across the globe, the SNP’s depute leader has said.
Angus Robertson gave his assessment as the World Economic Forum’s annual meeting in Davos, Switzerland, is due to discuss an alternative measure of national economic performance, the Inclusive Development Index (IDI), in contrast to Gross Domestic Product (GDP).
The IDI is based on the concept that most people assess their countries’ economic progress not by the amount of goods and services produced in their economy (GDP) but by their household’s standard of living. It takes account of income, employment opportunity, economic security and quality of life.
According to the report, the 10 most inclusive advanced economies in the world are, in order, Norway, Iceland, Luxembourg, Switzerland, Denmark, Sweden, Netherlands, Ireland, Australia and Austria.
Asked how an independent Scotland would do in such a ranking, and whether it would make the top 10 Robertson was confident. “Smaller countries have inherent advantages particularly when they are able to trade freely within the biggest market in the world,” he said. “If it is possible for every one of our smaller neighbours to make the top 10, from Norway, to Denmark, Iceland and Ireland there is no reason Scotland can’t either.”
Prime Minister Theresa May has announced the UK will pull out of the European single market, fuelling fears over the future of the economy after Britain leaves the European Union. The World Economic Forum’s Inclusive Growth and Development Report 2017 found the UK has one of the world’s worst advanced economies. Of the 30 advanced economies listed in the report, the UK ranks 21st.
Norway came at the top of the World Economic Forum’s Inclusive Development Index (IDI), with the report saying Norway’s ranking is due to its high and rising living standards, effective social protection and low inequality. The report said the economies of Luxembourg and Switzerland are driven by robust growth and employment, high living standards and low public debt, while Iceland has shown greatest improvement over past five years. It was followed by Denmark, Sweden and the Netherlands, whose economies are buoyed by high living standards and good social protection. Australia and New Zealand ranked high for fostering an entrepreneurial culture.
The WEF report stated: “GDP growth is a necessary but not sufficient condition for achievement of the broad-based progress in living standards on which citizens ultim-ately judge their countries’ economic success. This message is important ... at a time when global economic growth is finally rebounding to a more robust level.
“Political and business leaders should not expect higher growth to be a panacea for the social frustrations that have roiled the politics of many countries in recent years.
“Rather, a new growth model is needed that places people and living standards at the centre of national economic policy and international economic integration. In fact, many countries have significant unexploited potential to simultaneously increase economic growth and social inclusion.”
The top five most inclusive emerging economies are Lithuania, Hungary, Azerbaijan, Latvia and Poland.
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