Scotlands becoming independent

Text 1
(WSJ 6/6)
LONDONScotland would be worse off in economic terms if it becomes an independent
country, according to a survey of economists by the Center for Macroeconomics, a research
center.
Three-quarters of the 28 economists surveyed said they "disagreed" or "strongly disagreed"
that the economy of an independent Scotland would be better off than if the country stays in
the U.K. The Center for Macroeconomics is funded by the Economic and Social Research
Council, a U.K.-based organization that supports research on economic and social issues.
A referendum on Scottish independence on Sept. 18 will determine whether Scotland stays
in the U.K. Opinion polls have showed a consistent majority of voters against independence,
but the margin has narrowed recently.
Some of the economists cited concerns about the time it would take for an independent
Scotland to join the European Union, which it is in now as part of the U.K., and about
significant transition costs.
"There are no clear fiscal benefits to Scotland for independence," said Wendy Carlin, an
economics professor at University College London.
Another respondent, George Buckley, the chief U.K. economist for Deutsche Bank, said the
Scottish government's forecast of oil output seemed optimistic, and the country's deficit
could easily become worse than that of the U.K. in a short time. Wouter Den Haan, an
economics professor at the London School of Economics, said the only possible benefit he
could see for Scotland was its getting a larger share of oil revenues. But the downside
factors, including uncertainty around the business climate and politics, would harm
economic growth, at least in the short run.
Yes Scotland, the pro-independence advocacy group, says Scotland's economy would be
better off without the U.K. Over the past five years, Scotland's bank balance has surpassed
that of the U.K. by as much as 1,600 ($2,700) per person, according to the group's website.
Scotland has also generated more tax per person than the rest of the U.K. in each of the
last 33 years, the organization said.
President Barack Obama weighed into the debate this week, saying he prefers a united U.K.

Statistics:

(The Economist Intelligence Unit)
GVA (a very vague definition): a measure similar to GDP,
which measures the total value of goods and services
produced.

1. What the impacts would be to Scotlands economy as well
as that of the United Kingdom?

2. If you were a government official of the UK, how would you
minimize the negative impact to the British economy given
that Scotland was to become an independent state.

3. If you were the Prime Minister/ President of the independent
Scotland, how would you make sure that Scotland continues
to perform well if the British government would not allow your
country to use Great Britain Pound as an official currency?

4. Given that how some countries in the European Union
performed, if you were the one deciding whether to accept
Scotland as a new member of the EU, how do you see this
country and what factors you would consider before
accepting it?

(Choose 1 out of the 4 questions)