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SECTION 2 - A SINGLE OVERARCHING PURPOSE
Scotland's economy has underperformed for decades. Over the last 30 years, our growth has averaged just 1.8% - roughly half of the average rate for small European countries and less than the UK as a whole. That is why we have unified government around a single overarching Purpose: to focus government and public services on creating a more successful country, with opportunities for all of Scotland to flourish through increasing sustainable economic growth.
The Government Economic Strategy sets out how we will achieve the Purpose. Global economic developments such as the credit crunch, slowing global demand and the rise in commodity prices have created a challenging economic climate for the Scottish economy and implementing our Purpose. However, through our economic strategy and our spending, we are putting in place measures that will help Scotland flourish in the longer term and give it the competitive edge to cope with the global economic uncertainty in the near term. Our nation's success, now and in the future, depends on us developing as a high growth, vibrant and sustainable economy.
By prioritising learning, skills and well-being, creating a supportive business environment, developing infrastructure and place, working towards more effective government and promoting equity, we will set strong fundamentals for increasing sustainable economic growth.
Our economic strategy is clear that government alone cannot meet all the challenges. That is why we are establishing new partnerships with Scotland's people, local government partners, civic institutions and businesses - and, why we have established new structures such as the Council of Economic Advisers and the National Economic Forum, to bring the best possible expertise to bear on increasing our national prosperity.
We have set a new level of ambition and a sharper aspiration for the future. Alongside our immediate growth target to raise Scotland's GDP growth rate to the UK level by 2011, we have set out the Golden Rules of Solidarity, Cohesion and Sustainability. These will ensure that future economic growth in Scotland is shared and sustainable, enabling greater levels of social, regional and inter-generational equity. This in turn will ensure that in the longer term all individuals, sectors, and regions are suitably equipped to succeed in the modern economy and are better able to adapt to changing circumstances.
Already, we have taken a number of major steps towards achieving the Purpose:
- Delivery of the Government Economic Strategy was backed up with the passing of the 2008-09 Scottish Budget. We approached this in a spirit of seeking consensus on what was best for Scotland, listened carefully to suggestions from all sides, and got Parliament's agreement to our financial proposals. Our Budget Bill, seeking approval for spending plans for 2009-10, will be taken forward in the same spirit.
- To be successful, a country needs good infrastructure - roads, railways and bridges, public buildings and public transport. Key national infrastructure priorities will be identified in the second National Planning Framework. The Scottish Futures Trust will soon be established, enabling us to release savings of up to £150m each year for extra investment.
- To be successful, a country also needs to be influential on the international stage. The International Framework and the various plans which fall under the framework, including the draft Action Plan on European Engagement, the refreshed China Plan, and the Government's new international development policy, set out the Government's international ambitions and explain how they support the Purpose.
- More effective public services that respond to local needs and priorities are an important part of how we will deliver. We made a good start in establishing and developing a new and strong relationship with local government through our historic Concordat with COSLA, signed in November 2007. This established a new framework between national and local government with a package of measures which includes the overall funding to be provided to local government; a significant reduction in ring-fenced funding streams; the development of Single Outcome Agreements which set priorities at a local level; and progress towards jointly achieving outcomes for Scotland.
- Creating the Council of Economic Advisers demonstrated our new approach. The Council - a group of leading international academics and business people - has been set up to advise us on ways to improve Scotland's sustainable economic growth rate.
Achieving Scotland's 2011 Growth Target |
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An early priority for the Council of Economic Advisers has been to consider ways to increase sustainable economic growth in line with targets set in the Government Economic Strategy: By 2011: To raise the GDP growth rate to the UK level In the longer term: To match the GDPgrowth rate of the small independent EUcountries by 2017 Council discussions relating to the growth target have acknowledged the scale of the challenge in matching UK growth by 2011 and the need for compatibility between this target and Scottish Government's targets to reduce emissions over the period to 2011 and reduce emissions by 80% by 2050. Substantial work has been undertaken with the Council to identify key areas in which the Scottish Government can take immediate action to speed up progress towards the delivery of the 2011 growth target in the current economic climate. Following the Council's June 2008 meeting, a series of recommendations on achieving the 2011 growth target were made by the Council to the Scottish Government. The Council stated: "Our discussion was centred on a series of policy initiatives, which has, as the overarching proposition, the need to create a narrative of economic success and a joined-up approach to promoting our country at home and abroad. The effective promotion of Scotland internationally is crucial if we are going to deliver higher levels of economic growth in the short term and for the future." The Council's recommendations, which have been accepted in full by the Scottish Government, included proposals to pursue population growth, develop a more supportive business environment, including planning, and targeting growth in key sectors. They also highlighted the need for real collaboration between government, the universities and business to maximise productivity in Scotland and challenged the Government to assess the costs of various energy options for Scotland, including energy efficiency measures. |
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