CHAPTER 4 SCOTLAND’S SEPARATISM IN THE CONTEXT OF
4.2 Scotland in the Context of the Globalization-Separatism Debate
4.2.1 Economic Inequality of the United Kingdom Fostered Separatism
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nationalism are, perhaps, best seen as two sides of the same coin and inextricably linked.”317 Thomas Eriksen adds to this, “that the centripetal or unifying forces of globalization and the centrifugal or fragmenting forces of identity politics are two sides of the same coin.”318 Whilst the two concepts may be linked to each other, nonetheless, it does not mean that they want the same outcome or warrant the same effect.
Scotland embodies the arguments that it is economic inequality and ethnicity which results in separatism and also, how they both tie into the globalization argument where economic inequality and ethnicity demonstrate that there could be a causal relationship between globalization and separatism. This section of the chapter will begin with placing Scotland’s economic inequality and ethnicity into the globalization-separatism debate and then discuss the legitimacy of the referendum whilst ultimately contending that globalization prevents separatism from occurring even coming from such a strong case study as the Scottish case.
4.2.1 Economic Inequality of the United Kingdom Fostered Separatism in Scotland
In Chapter Two of Separatism, this thesis discussed that economic inequality was a core factor of separatism and this can be exemplified well in the case of Scotland. Scotland initially enjoyed a considerably successful economy which was founded through the introduction of new industries, especially in electronics. At that period of time, Scotland was the most successful region of the UK in attracting investment from overseas and was actually also, one of the most successful in Europe.
317 Munck, R. (2007), Globalization and Contestation, The New Great Counter-Movement (Rethinking Globalizations), London: Routledge, p. 114
318 Eriksen, T. H., “Globalization and the Politics of Identity,” UN Chronicle, Autumn 1999, http://folk.uio.no/geirthe/UNChron.html [Last Accessed: December 21st 2015]
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However, when the electronics industry began to subside and in 2000, suffered a severe setback where investments were moved from Scotland and into countries with lower labor costs, the economy of Scotland was affected gravely. Globalization is seen at play here considering companies which were placing their investments in Scotland were companies from other countries, and once they deemed that there could be no profit made in Scotland, they moved their factories elsewhere with lower costs. This is a prime example of globalization as globalization aims to create a borderless world with free trade and effective economic interests. If the world were not as globalized as it was, there could have been a chance that the separatist movement in Scotland could have been prevented.
In addition to this, the new Conservative government after the 1979 election refused to aid Scotland as their philosophy was against intervention and thus, regional policy was minimized causing Scotland to fall further into depression. The tight monetary policies sanctioned by the government consequently led to the closure of many industrial firms and investment firms that had set up their businesses in Scotland. It was at this moment in time that Scotland lost much of its manufacturing industry. Even with the newfound reserves of North Sea Oil at that time, the unemployment rate in Scotland was just under 14 per cent in 1986, it was much higher than it should have been in the recession.319 The central government in that period of time also made critical mistakes in alleviating the Scottish economy and this goes against the belief of those scholars who argue that globalization prevents separatism. If the central government had taken effective measures then the separatist movement in Scotland may not have bloomed.
The SNP argue above that Scotland is wealthy enough to stand on its own two feet and do so much more. By having an independent Scotland, it would not only give the people of Scotland the right to decide their own matters but also, would allow Scottish people to fully revolutionize their economy. Scotland is now a wealthy country as illustrated by Scotland’s gross value added (GVA) per head, which sits at 98.6 per cent of the UK average in 2011, and was only exceeded by London and the South East of England. At a lower level of accumulation, the
319 The Scottish Office (Various Years), Scottish Economic Bulletin
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north east of Scotland can be considered one of the most prosperous regions of the UK with a GVA per head of 144 per cent of the UK average, making it second only to Inner London.
Unemployment for Scotland was below the UK average as well in 2013.320 These figures are only a scratch on the surface of the statistics of Scotland and it is clear to see the reason why economic inequality would be felt so deeply by the Scottish.
Since the Thatcher Administration in the United Kingdom, the economy of Scotland has not been the same as in the past and the Great Recession in 2008 only caused the Scottish economy to plunge further. The growth of the financial services sector and the development of the North Sea oil and gas have renovated the Scottish economy and it is now on its path to becoming wealthy again. Nonetheless, the sense of grievance felt at the damage to the Scottish economy and the economic inequality between Scotland and to the rest of the UK, can be seen as a core factor and a drive towards the growth of support for independence. Some people felt that Scotland’s economic performance was below par and this was when they began to question the potential of the Scottish faring on their own. Therefore, the result of separatism stemming from economic inequality can be seen to have been derived from globalization.
Even though this is the case, it cannot be denied that to some extent globalization prevents separatism in the case of Scotland and the factor which barred the path of Scottish independence this time was the effectiveness of dealing with the referendum by the central government of Westminster. The Conservative Party in power agreed to the referendum but to ensure that a “Yes” vote did not occur, they gathered the other UK party leaders from Labour and Liberal Democrats and signed a pledge assuring extensive new powers for Holyrood (the Scottish Parliament) if Scotland voted no.321 While this vow has been controversial to say the least since some voters do not believe that the UK parties have fulfilled their promise of more devolved powers, it demonstrates the tools that are at a central government’s disposal to sway
320 McCrone, G. (2013), Scottish Independence: Weighing Up the Economics, Birlinn Ltd: Birlinn Publishers, p. 3
321 “UK Party Leaders Issue Joint Pledge to Give Scottish Parliament New Powers,” The Guardian, September 16th 2014, http://www.theguardian.com/politics/2014/sep/16/cameron-miliband-clegg-pledge-daily-record [Last Accessed: December 22nd 2015]
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voters to their side.322 The nation-state may have been argued to have weakened but this example illustrate that the nation-state still retains their authority and powers as a national government in the face of globalization. Scotland’s separatism had difficulty in succeeding when faced with the deterrence which globalization wields.
322 Walsh, J., “10 Things Scottish Voters are Feeling on the Referendum Anniversary,” The Guardian, September 18th 2015, http://www.theguardian.com/politics/2015/sep/18/10-things-scottish-voters-scottish-independence-referendum [Last Accessed: December 22nd 2015]