Showing posts with label Norway. Show all posts
Showing posts with label Norway. Show all posts

The Arc of Prosperity

Watching the Conservative Party conference is a hardly a pleasant task; but someone has to do it, and there are one or two laughs to relieve the tedium.

One of them was in their debate on the future of the UK, in which Cheryl Gillan was first up. After the usual Labour bashing, she spoke of her fears about Plaid Cymru, especially because in our own conference a few weeks ago we made our aim of independence for Wales more explicit.

     

As I'm sure most of us will remember, the Arc of Prosperity was a phrase used by Alex Salmond in 2006 to include Ireland, Iceland and Norway, which were at that time among the six richest nations in the world on a per capita basis. Norway has managed to stay near the top, but both Ireland and Iceland's economies suffered badly as a result of the banking crash.

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But it so happens that the latest CIA World Factbook came out only a few days ago, including a list of countries (and a few sub-national entities like Bermuda, Jersey and Hong Kong) ranked on a GDP per capita basis. Norway was seventh, Iceland had slipped down to 25th and Ireland to 27th.

But where is the UK? Sadly, it's floundering at 37th.

And the CIA factbook is not alone in that assessment. The latest figures from the IMF, World Bank and OECD tell a very similar story.

CIA World Factbook

Norway ... 7th
Iceland ... 25th
Ireland ... 27th
United Kingdom ... 37th

International Monetary Fund

Norway ... 4th
Ireland ... 13th
Iceland ... 17th
United Kingdom ... 22nd

World Bank

Norway ... 5th
Ireland ... 13th
United Kingdom ... 22nd
Iceland ... 24th

OECD

Norway ... 2nd
Ireland ... 8th
Iceland ... 15th
United Kingdom ... 16th

Both Ireland and Iceland might have suffered, but they are still more prosperous countries than the UK. The figures show that we'd be fools to gloss over the enormous fall in the UK's own prosperity, which is largely accounted for by the fact that the Pound fell from a level of around $2 in 2008 to a level of around $1.60 now.

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So I hate to burst your bubble, Cheryl, but we in Plaid Cymru are very happy to talk about the Arc of Prosperity. For even though a couple of the countries in it have taken a bashing, they still remain richer per head than the UK.

The economies of small, independent countries can do better than those of the large, slow to manoeuvre "oil tankers" not because they don't suffer in times of economic crisis, but because they tend to bounce back faster. That's one of the conclusions of the Flotilla Effect.

So why is Cheryl Gillan still clinging to the idea that:

"Wales doesn't need independence to prosper, it needs the interdependence of the four nations [of the UK] to provide strength and security during these difficult times."

The hard evidence shows that the UK is far from being a lifebelt, it's more like a block of concrete tied round our necks. As part of the UK, Ireland used to be poor. Independence is what allowed it to become and remain more prosperous than the UK.

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