2 days ago
Why does Scottish Government think a UK wellbeing economy is possible?
OVER the weekend, the independence movement will begin to address an issue that the Scottish Government has so far been unwilling to confront: the need to get practical about a wellbeing economy.
On Saturday, I will deliver a session on the principles of the wellbeing economy in an independent Scotland as part of the IFS Summer Convention taking place in Perth, which will bring together representatives from across the independence movement.
The desire for the independence movement to take the lead on the wellbeing economy reflects many of the conversations I've had this year. But before we can define a 'wellbeing economy', we need to examine its principles.
What does a wellbeing economy look like?
To do that, we must ask: What does a society built around wellbeing actually look like? Not just in theory – but how will it function, what will its values be, and what choices must it make?
Within the independence movement, people don't struggle with the idea of a wellbeing economy, but their vision is often rather hazy. The conversation which starts on Saturday presents a unique opportunity to solidify the vision for a wellbeing economy in an independent Scotland.
To ground the conversation, I offer three simple statements on which all of the readers, I hope, can agree.
We do not have a wellbeing economy right now.
A true wellbeing economy will look very different from today's economy.
A wellbeing economy (whatever that looks like in the UK) seems further away each year.
A wellbeing economy stands at the forefront of a progressive, independent Scotland.
The concept of a wellbeing economy was one of the five key policy areas underpinning the Scottish Government's most recent economic prospectus (as part of the UK), the 2022 National Strategy for Economic Transformation. The report aimed to set out 'the priorities for Scotland's economy as well as the actions needed to maximise the opportunities of the next decade to achieve our vision of a wellbeing economy'.
The strategy suggested that a wellbeing economy would deliver higher employment and wage growth rates and significantly reduce structural poverty. It would also improve health, cultural, and social outcomes for disadvantaged families and communities while part of the UK. In sum, the paper states that a wellbeing economy is possible in Scotland as part of the UK, a statement that I would strongly oppose.
A Stronger Economy with Independence, released later in 2022, was the Scottish Government's vision for Scotland's economy once independent. It remains the most recent version. It opens with the line: 'We will use the full powers of independence to build an inclusive, fair, wellbeing economy that works for everyone in Scotland.'
It is therefore easy to claim that the wellbeing economy is the destination for a better Scotland, whether as part of the UK or as an independent nation.
However, as Aileen McLeod, director of WEAll Scotland, highlighted, a major concern for many in the wellbeing movement is that we can not deliver a wellbeing economy within the current economic system.
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McLeod said recently: 'While some progress has been made, there are concerns that the Government is retreating and falling back on an outdated economic model that cannot deliver the transformative change that people and communities across Scotland urgently need.'
Like many general economic frameworks, a wellbeing economy is a contested term. Even in a relatively small group of activists and policymakers in Scotland, those engaged with the concept have differing views on the details or extent of the change required to create one.
Is it a slow transition or a rapid transformation? Can we keep the best bits of capitalism and refocus our growth efforts? Do we simply need to de-prioritise the role of markets? Or do we require a new paradigm?
The fork in the road
To move the meeting on Saturday forward (and the movement as a whole), attendees will consider one question: Can our current economic system (or more precisely, the one in which we will begin our life as an independent nation again) deliver a wellbeing economy?
It will be very interesting to see where the meeting lands.
I believe that the Scottish Government is attempting to establish a wellbeing economy on economic foundations that will ultimately undermine its wellbeing policies. The IFS Summer Convention marks an opportunity for the movement to take the lead.
If we accept that wellbeing is not part of the economic system at the moment, we open up space to think more radically – and more honestly – about what's needed.
We can only assess that economic system if we understand it.
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Since the late 1970s, we've been governed by a growth-first framework. Under neoliberalism, that system prizes an increase in GDP, productivity, and profit. There is little space for wellbeing.
I have termed this the growth paradigm, and it views wellbeing policies – such as job guarantees, shorter workweeks, or community ownership – as non-essential. I would argue, in fact, that it views them as luxuries that we can not afford, or perhaps even as threats.
But what does the independence movement think? Well, hopefully we will get a good idea of that over the weekend.
The challenge is clear. How do we get from where we are now to a very different economy?
Do we need to compromise? And if so, what social beliefs, ethical values and standards do we choose to include and which ones do we leave out? How will the economy we are likely to inherit when we are independent again support wellbeing policies?
And the big one: How do we create the political and economic space in an independent Scotland to make that happen?
