Friday, November 29, 2013

Flying a flag does not make a viable State

It is hard to be a fan of the embattled Spanish PM Rajoy; but one can hardly disagree with him when he called the bluff of SNL Party Chieftain Alex Salmond who is spear heading Scottish Independence.

UK Queen and her predecessors have left disgruntled folks all over the world because of the past British Empire so much as many are instinctively disposed to an independent Scottish Nation; just so as to cut the nose of Queen. But the question to be asked is whether pulling down the queen is any sufficient to make lives of common folks any better.

Fortunately, most subjects of the UK Queen who can organize themselves as viable independent nations, have already done so. But that hardly makes the case of Scottish Independence; despite 600+ plus pages of erudition.

Such an independence is hardly going to make lives of Scottish People any better; especially when Scottish Independence leaders are proposing to retain Sterling Pound as the currency and still claiming to have non-existent monetary freedom. One only has to read Paul Krugman to understand foolhardiness of letting someone else to decide your monetary policy. Greece is a prime example of that - there is no recourse to make you trade-wise competitive nor a mechanism to deflate your debt in real terms assuming it is denominated in your own currency to start with.

If the argument is that Scotland does not have any worthwhile export apart from some Culture artifacts nor do they want to make Sterling Pound denominated Debt (independent Scotland will have to share some part of UK's total debt) more expensive by a weaker currency; that is a different case to be made. Standard economic prescriptions do not lend any weight to this view as well.

Today's world is more inter-dependent and as such tendencies to carve our 'independent nations with a haphazard structure solely on the basis of cultural distinctiveness' are hardly justified. Same seems to be the case with Scotland and there does not seem to be any stronger case to break from UK. May be after all most commoners understand games of these politicians. Just like how Canada learned to live with perennial, but unsuccessful, Quebec Independence Movement; UK might learn to manage Scottish Pride without any actual divisions of the union.

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