The Flotilla Effect - Europe’s small economies through the eye of the storm
The potential economic benefits of Welsh independence have been set out in a report produced by Harvard researchers Adam Price and Ben Levinger. Former MPAdam Price - and former research fellow at Harvard’s Center for International Development - describes a 'flotilla' effect of small nations outperforming the bigger 'dreadnoughts' over time.
The report, commissioned by Jill Evans MEP, presents some key findings on the potential economic benefits of being a small independent nation.
Size matters: 50% of differences in growth over the last thirty years in western Europe can be attributed to differences in country size;
Welsh people would be around 39% richer, and the Welsh economy would have grown by 2.5% a year had Wales achieved independence around the time of the fall of the Berlin Wall and followed a similar pattern to other small nations;
Small is richer: being small doesn't hamper a country's prosperity - in fact there is a 'small country bonus' amongst the EU's member states, with smaller countries growing at a more rapid pace;
Smaller countries are frequently the fastest to recover from recession;
Four key factors make small nations economically successful - openness to trade; social cohesion; adaptability; the EU's flotilla-like structure
The report is a serious and substantial contribution to the debate about sustainable economic growth in small nations. This is particularly timely and highly relevant to Wales and other similar European countries in this time of global economic turmoil.
Other articles on the topic
Small Is Cute, Sexy, and Successful: Why Independence for Wales and Other Countries Makes Economic Sense
Article writtien for Harvard Kennedy School Review: 2011 Edition by Adam Price which previews some of the key findings of the Flotilla Effect report.