Small countries are economically viable

November, 2011

2

The number of states has experienced a great increase in the last 60 years

Evolution of the number of states

1945 2011

74

196

x 2,6

Source: “Trade, Growth and the Size of Countries”, Alberto Alesina, Enrico Spolaore, Romain Wacziarg

3

The increase of the international trading is leading to the birth of new economically viable contries

1950

1951

1952

1953

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

0

20

40

60

80

100

120

140

160

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Number of states (Without Africa subsahariana)

Evolution of the number of countries and the internationalisation rate of the econonomy

Source : “Trade, Growth and the Size of Countries”, Alberto Alesina, Enrico Spolaore, Romain Wacziarg

Internationasl trading VS GBD

(average of 61 countries)

Number of states

Internationasl trading VS GBD

4

The Global Competitiveness Report, from the World Economic Forum rates the countries depending on its competitiveness.

Source: “The Global Competitiveness Report 2011–2012”, Professor Xavier Sala-i-Martin, Columbia University, Chief Advisor of the Centre for Global Competitiveness and Performance. World Economic Forum. Geneva, Switzerland 2011

Basic requirements

Efficency factors

Innovation factors

Institutions Infrastructures Macroeconomic environment Health and Education

Education and Master Efficiency of the market goods Labor market efficiency Development of the financial market Technological situation Size of the marketing

Sophistication of the business Innovation

Twelve pillars of competitiveness

5

According to the mentioned report, 8 out of 20 Countries with greater competitiveness are European small counties

Source : “The Global Competitiveness Report 2011–2012”, Professor Xavier Sala-i-Martin, Columbia University, Chief Advisor of the Centre for Global Competitiveness and Performance. World Economic Forum. Geneva, Switzerland 2011

Switzerland

Singapore

Sweden

Finland

USA

Germany

Holland

Danmark

Japan

UK

Hong Kong

Canada

Taiwan

Qatar

Belgium

Norway

Saudi Arabia

France

Austria

Australia

5.74

5.63

5.61

5.47

5.43

5.41

5.41

5.40

5.40

5.39

5.36

5.33

5.26

5.24

5.20

5.18

5.17

5.14

5.14

5.11

Ranking of the Global Competitiveness Index 2011-2012

The ranking shows that small countries are at least as efficient as the big ones

6

The IMD istitute publishes another Ranking where also 8 out of 20 states with great competitiviness are Small European States

Source: “The World Competitiveness Scoreboard 2011”, Lausanne’s Institute for Management Development (IMD)

Hong Kong

USA

Singapore

Sweden

Switzerland

Taiwan

Canada

Qatar

Australia

Germany

Luxemburg

Denmark

Norway

Netherlands

Finland

Malaysia

Israel

Austria

China

UK

100.0

100.0

98.6

94.1

92.6

92.0

90.8

90.2

89.3

87.8

86.5

86.4

86.3

85.7

84.4

84.1

81.6

81.6

81.1

80.3

Ranking of the World Competitiveness Scoreboard 2011

7

In 2011, the IMD institute has released a new ranking with the states that are in a better position to overtake the crisis

Denmark is the first one.

Followed by small nations such: Qatar, Norway , Hong Kong, Switzerland i Sweden

Big States have a worse position in that Ranking:

USA: 28th position China: 18th position Brasil: 22nd position Germany: 24th position Japan: 26th position South Corea: 29th position

Big states from the Southern Europe drop dramatically in the ranking France: 44th Italy: 47th Spain: 50th

Source: “The World Competitiveness Scoreboard 2011”, Lausanne’s Institute for Management Development (IMD)

According Prof. Stephane Garelli, head of studies at the IMD: Small economies are better prepared to thrive and survive during a crisis ...and manage a more secure financial policy

8

Irland

Lithuania

Latvia

Croatia

Bosnia

Eslovàquia

Estonia

Denmark

Netherlands

Switzerland

Moldavia

Catalonia

Belgium

Albania

Macedònia

Slovenia

Montenegro

Cyprus

70

65

65

57

51

49

45

43

42

41

34

32

31

29

26

20

14

9

Catalonia is geographically as big as the some of the most competitive European states

European countries with similar dimensions of Catalonia (surface on Thousands of km2)

Source: Wikipedia, 2011

In terms of surface, Catalonia is similar to Denmark, Netherlands, Switzerland or Belgium

9

Germany

UK

France

Italy

Spain (including Catalonia)

Poland

Romania

Netherlands

Greece

Portugal

Belgium

Czech Republic

Hungary

Sweden

Austria

Bulgaria

Switzerland

Serbia

Catalonia

Denmark

Slovakia

Finland

Norway

Croatia

Moldavia

Irland

Bosnia

Lithuania

Albania

Latvia

Macedonia

Slovenia

Estonia

83.361.1

59.858.8

45.138.6

21.716.3

10.610.410.310.310.1

9.18.27.67.57.57.2

5.65.45.2

4.54.44.44.23.83.63.6

2.42.11.91.4

Catalonia has a similar population to the some of the most competitive European states

Population of the European States(milions of inhabitants)

Note: Including countries with a population greater than 1 Milion people Source: Wikipedia, 2011

Catalonia has a population similar to Sweden and Switzerland and greater than Denmark, Finland and Norway.

10

Increase of the GBD per capita; Founders of the EU

The smallest European countries have experienced a greater growth compared with the big ones (1/2)

Source: Adam Price (Harvard University)

1979 - 1991

2.0%

1.7%

The 3 smallest countries founders

of the EU

The 3 bigest countries founders

of the EU

1992 - 1998 1999 - 2007

2.3%

1.3%

2.6%

1.6%

11

The smallest European countries have experienced a greater growth compared with the big ones (2/2)

2001 2002 2003 2004 2005 2006 20070%

1%

2%

3%

4%

5%

European Countries. Growth of the GBD

States with population between 4,6 and 10,5 million

people

States with a population greater

than 38 milion people

Source: Eurostat

The small states have experienced a greater grow between 2002-2007

12

EU members recently independent had grown more than twice that the medium value of EU

2000 2001 2002 2003 2004 2005 20060%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Growth of the GBD Creixement del PIB

European Countries recently independent

(Czech, Slovakia, Croatia, Latvia, Slovenia, Estonia)

European Union Average

Source: Eurostat

13

The smallest countries of the European Union are the ones with greater growth; They are overtaking the crises with a better shape

Source: El Punt-Avui, 19/09/11

0 20 40 60 800.0%

1.0%

2.0%

3.0%

4.0%

Population (milions of inhabitants)

Growth of the GBD during 2nd

quarter 2011

Growth of the European GBD VS Population. 2nd quarter of 2011

GermanyFrance

Spain Italy

Lithuania

Latvia

Estonia

Irland Finland

Austria

Sweden

Belgium

Slovakia

UK

The smallest countries have experienced a growth greter than the 0,7%

The biggest countries have experienced a growth below teh 0,3%

14

Summary

being‘SMALL’ Will continue being a plus regarding the wealth for the Nations

continuarà essent un plus en matèria de riquesa per a les Nacions

Jim Mather, ex Minister for Enterprise, Energy and Tourism and until the 2011 election, Member of the Scottish Parliament.

Barcelona 21Setembre2011

Empresaris per l’Estat propi

www.ccncat.cat info@ccncat.cat

Només amb un Estat propi Catalunya serà econòmicament viable