NO The Scottish people has voted by a margin of more than 10% to stay in the United Kingdom. A similar idea is brewing in the Borneo states of Sabah and Sarawak. As in companies in this modern economy, countries are better when bigger. The most obvious reason is economy of scale. Why the United States, China and the European Union are the worlds economic engines is because of their size. Yes, there are also examples of tiny micro states such as Singapore and Hong Kong (a semi-independent state with its own currency and central bank) but the price that is paid by the natives of such states are very high. The biggest expenditure of a nation-state is development expenditure, e.g. infrastructure, followed by social services (health and education) and then defence. One also forgets that being a separate country requires ones own currency and central bank. To maintain the value for the currency, one needs to have sufficient foreign reserves. Foreign reserves require billions and billions of dollars to be put aside, untouched. If you are not aware, Bruneis currency is pegged to the Singapore Dollar, tiny Luxembourgs is pegged tot he Swiss Franc and the Vatican does not even have its own currency. By pegging ones own currency to another countrys currency means that one does not have an independent monetary policy. This is possible for Brunei where there is virtually no unemployment and practically an oil-economy. Both Borneo states are neither. Being big, and having a big economy, a big GDP - in absolute terms, not per capita - also gives a nation-state muscle in international diplomacy and negotiations. Malaysia gains a foothold because it is in the top rank of ASEAN. On our own, nobody really listens to us.
Posted on: Fri, 19 Sep 2014 09:01:02 +0000
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