Over One Third of Adults Think the Scottish Parliament will Improve the Scottish Economy

The most detailed and complete analysis of the Scottish economy carried out for many years is published today, coinciding with a new poll which shows most Scots remain to be persuaded that their economic prospects can be improved by the Scottish Parliament.

The analysis has been carried out by some of Scotland's best known economists, and is contained in a new book which is published on the eve of today's official opening of Scotland's first parliament for nearly 300 years.

"The Illustrated Guide to the Scottish Economy" by Jeremy Peat and Stephen Boyle, with contributions from a number of the leading academic commentators on the Scottish, economy, is intended to be an important contribution to filling the information gap facing Scottish policy makers. It is published with the support of Scottish Enterprise and the Royal Bank of Scotland.

Launching the study, Viscount Younger of Leckie, Chairman of the Royal Bank of Scotland, and former Secretary of State for Scotland, said the Scottish Parliament ability to improve Scotland's economic performance was significantly constrained by the lack of current information and analysis available to policy makers.

He said: "The paucity of information currently available on the Scottish economy will make the Parliament's job more difficult than it need be. We saw a clear requirement for a book of this type, which draws together in a readily accessible format much of what we know - or think we know - about the Scottish economy. It is our contribution to informing, and raising the quality of, the debate about economic matters in the devolved Parliament."

Cameron McLatchie, Deputy Chairman of Scottish Enterprise, said, "It is crucial to build a greater shared understanding of what is happening in the Scottish economy. This understanding will be the foundation on which firms of all sizes, individuals of all ages, public and voluntary organisations of all types and others across Scotland can take the individual actions that will collectively help to secure Scotland's future in an increasingly challenging and fast changing economy."

An opinion poll carried out for the Royal Bank of Scotland to coincide with the launch shows a majority of Scots remain to be persuaded that the Parliament will improve Scotland's economic performance.

The survey, carried out by MORI Scotland, shows that 35 per cent of Scots believe the economy will improve as a result of the Parliament, but 22 per cent say that it will get worse. A further 28 per cent say they believe that the Parliament will make no difference.

Those most likely to believe the Parliament will make no difference.

Those most likely to believe the Parliament will have a positive impact tend to be the young and the middle classes. The ABC1s are more optimistic than other social classes, and the younger generations are more hopeful that the Parliament will change Scotland's economy for the better - 39 per cent of 18 to 24 year olds and 41 per cent of 25 to 34 year olds think the economy will improve, as against 27 per cent of the over 65s.

Jeremy Peat, Chief Economist at the Royal Bank of Scotland and co-author of the book, said "If the Scottish Parliament is to reach the right decisions about which policies to implement and how to spend its limited budget, it needs access to quality data and to independent analysis of policy issues. Neither of these provisos is yet in place. We still need more and better data about Scotland's economy - this book is just the start."

Mr Peat said the book identified a number of areas where the need for action was already clear. He said: "Scotland is by no means a poor country, but we are mediocre performers among the advanced industrial nations. Improving our standing means raising our levels of productivity. Among other things, that means enhancing the skills of our workforce. Scotland no longer merits the reputation for educational excellence we once enjoyed, and across a range of skill levels we are in danger of falling far short of the targets we have set ourselves. Education, Education, Education might be a useful slogan for the parliament."

Scotland also needed to address its entrepreneurial deficit. He said: "Scotland simply does not produce enough firms, and there is no indication that we are closing the firm formation gap on the rest of the UK."

Intended to be a useful guide for policy makers and all interested in the Scottish economy, the book is written with the interested lay person, students, business leaders and advisers, and MSPs in mind. It provides a detailed analysis of the Scottish economy, setting it in the context of the UK, European and world economies.

As the first general book on the Scottish economy for more than 15 years, it draws together a vast array of information from previously disparate sources, adding vital new data and analysis to inform the debate on the economy.

Gordon Brown, Chancellor of the Exchequer, who has written a foreword to the book said; "The Royal Bank of Scotland and Scottish Enterprise are to be congratulated for sponsoring this guide to the Scottish Economy. It will give students and academics policy makers and industrialists a source of invaluable reference which helps them understand the country in which we live and work."

The book is edited by Bill Jamieson, Economics Editor of the Sunday Telegraph and author of "An Illustrated Guide to the British Economy" and contains contributions from Scotland's leading academics on the economy - Brian Ashcroft, Neil Hood, Gavin McCrone and Peter Wood.

Technical details

1. MORI Scotland interviewed a representative quota sample of 1,284 adults aged 18+ by telephone throughout Scotland on 19-27 June 1999. Data are weighted to reflect the profile of the population.2. "An Illustrated Guide to the Scottish Economy" has been published with the support of the Royal Bank of Scotland and Scottish Enterprise, and published by Duckworth & Co.