Flotilla effect

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The Flotilla Effect is an examination of how smaller nations fare in a globalised economy, the impact the Great Recession had on smaller nations and what advantages and disadvantages smaller independent nations have economically. [1] [2]

Contents

GDP (purchasing power parity) of European countries, 2009. (CIA) European countries GDP PPP per capita and population.jpg
GDP (purchasing power parity) of European countries, 2009. (CIA)

Concept and discussion

Original conception

The concept was first introduced by Adam Price and Ben Levinger on behalf on the Green-EFA group in the European Parliament. While at Harvard University, they released an article titled The Flotilla Effect: Europe’s small economies through the eye of the storm. [3] This report gained attention in the media, particularly the national media in Wales. [4] [5] [6] [2] [7]

Scholarly references

The report has also been discussed in scholarly articles, including in the context of improving the welfare state, [8] devolution in Wales [9] and in a publication by Cardiff University's Wales Fiscal Analysis in the context of fiscal policy in Wales. [10]

Independence

The flotilla effect also gained some attention, following Plaid Cymru leader at the time, Leanne Wood's proposals for a debate on Welsh independence in the wake of the 2014 Scottish independence referendum. [11]

Wales

Owen Donovan published in his blog "State of Wales" that he would revisit the idea in October 2017 and came to two main conclusions. There is indeed no link between larger countries or population and increased proportional economic growth and there is no such phenomenon as a country being "too small" for independence. There is a correlation between a country's openness to trade and its economic growth which is true for all sizes of countries. There is also a trend that smaller nations tend to have better prospects for economic growth when these countries are open to trade.

Donovan also notes two matters that are not addressed in full in the original concept report, the first being whether the United Kingdom has hampered economic growth in Wales, although the evidence suggests that this is indeed the case. The second matter is that the report does not evaluate the economic prospects of a potentially newly independent state such as Wales and whether Wales would be better off or not. [12] [ self-published source? ]

Plaid Cymru

Ioan Bellin, a Plaid Cymru candidate has discussed the benefits of the flotilla effect via the Institute of Welsh Affairs. [13]

Jonathan Edwards, Plaid Cymru MP, has also outlined benefits of small country economics and the flotilla effect via HUFFPOST. [7]

Scotland

Adam Ramsay of Open Democracy UK states that the Flotilla effect is an additional argument in favour of Scottish independence. He suggests that small European countries have a tendency to be more prosperous than larger countries with a greater Gross domestic product (GDP) per head. He justifies the mechanism behind this phenomenon by suggesting that governments of smaller countries are able to use economic policy in a more subtle manner, and can adapt faster to changing circumstances. [1]

Related Research Articles

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<span class="mw-page-title-main">Politics of Wales</span> Political system

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References

  1. 1 2 Ramsay, Adam. "40 reasons to support Scottish independence: reason 16: the flotilla effect and why smaller countries are richer". openDemocracy. Retrieved 19 April 2022.
  2. 1 2 Price, Adam (2 August 2011). "Why Independence for Wales and Other Countries Makes Economic Sense". HuffPost UK. Retrieved 24 April 2022.
  3. ↑ "The Flotilla Effect - Europe's small economies through the eye of the storm by Plaid Cymru - Issuu". issuu.com. 26 July 2011. Retrieved 24 April 2022.
  4. ↑ WalesOnline (1 August 2011). "Plaid Cymru research claims independent Wales 'would have made people 39% richer'". WalesOnline. Retrieved 25 April 2022.
  5. ↑ Barry, Sion (11 August 2011). "Would an independent Wales really be better off than the status quo?". WalesOnline. Retrieved 25 April 2022.
  6. ↑ "Independent Wales would be 39% richer, claims ex-MP". BBC News. 2 August 2011. Retrieved 25 April 2022.
  7. 1 2 Edwards, Jonathan (20 July 2011). "Wales: A Small Clever Country". HuffPost UK. Retrieved 25 April 2022.
  8. ↑ Chaney, Paul (2017). "'Governance transitions' and minority nationalist parties' pressure for welfare state change: Evidence from Welsh and Scottish elections – And the UK's 'Brexit' referendum". Global Social Policy. 17 (3): 279–306. doi:10.1177/1468018116686922. ISSN   1468-0181. S2CID   151706442.
  9. ↑ Stafford, Ian. "Devolution in Wales: Between Economic Constraint and Political Opportunity". Revue Internationale de Politique Comparée.
  10. ↑ Ifan, Guto. "Wales' Fiscal Future: A path to sustainability?" (PDF). Wales Fiscal Analysis.
  11. ↑ James, David; Mosalski, Ruth (14 March 2017). "Readers argued about independence. And then they argued some more". WalesOnline. Retrieved 25 April 2022.
  12. ↑ "The Flotilla Effect Revisited". State of Wales. 30 October 2017. Retrieved 24 April 2022.
  13. ↑ Bellin, Ioan (27 April 2013). "Wales needs greater clout in Brussels". Institute of Welsh Affairs. Retrieved 25 April 2022.
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