Research and analysis

Scottish independence referendum: Our place in the world

Published 28 April 2014

Make sure you’re in the know

The decision you take on 18th September 2014 will not just affect what happens within Scotland and the UK, but will also have a significant impact on how the rest of the world sees us.

Scotland has a strong place in the world as part of the UK.

As the United Kingdom we have strength in numbers and a longstanding international reputation: we are the sixth biggest economy in the world, a major military force and a member of the EU on our own terms and with our own currency.

We can help others on the issues we care about, for example helping over a million people get food, medical care and shelter. Our interests are protected through a global network and our longstanding diplomatic relationships give us advantages in our dealings with other countries. Our strong financial track record makes it easier for us to borrow and trade.

No one knows exactly how effective an independent Scotland’s international presence would be. What we do know is that the relationships we have in place today, our armed forces and diplomatic services, global network and reputation, work well.

The referendum debate couldn’t matter more and here’s why the UK’s status and strength in the world should matter to you:

Our influence matters

Being involved when important decisions are made on the economy, security and human rights means we can defend our interests and get a good deal for everyone in the UK. We are a member of the most influential global organisations including the G7, G8, G20, NATO, the UN Security Council, and the EU. This means that people in Scotland are represented at the highest levels when it comes to the world’s major economic, political and security issues.

And, the UK is ranked 2nd globally by Monocle as a ‘soft power’ (our ability to influence thanks to our culture, education, business environment and values). Furthermore, we have the third strongest nation brand (how we are viewed internationally) according to the 2013 Anholt-GfK Nation Brands Index, and the fourth most valuable according to the 2013 Brand Finance Nation Brands report.

Protection matters

The UK has some of the best armed forces in the world, which safeguard our country and contribute to humanitarian operations overseas. The UK Armed Forces help to strengthen our international influence, and to sustain our defence industry, which employs many thousands of people in Scotland.

Tackling global poverty matters

What happens across the world matters more to us than ever before. We are investing in jobs, opportunities and peace. The UK doesn’t stand on the sidelines – our diplomats and development workers are striving for important goals. We can all take pride in the UK’s role as the second largest overseas development donor in the world after the USA. The UK is also a respected champion of human rights, defending democracy and rule of law all over the world, as well as playing a big part in the fight against sexual violence. Together we can continue to act for the common good and stand up for our common beliefs and values.

Our voice matters

The UK has a strong say in international decisions that affect everyone in the UK, for instance those made by the EU on farming, fishing and finance. Scotland can trade easily with the other parts of the UK and, thanks to our EU membership, with countries in the EU. No one knows how long it might take an independent Scotland to join the EU, especially if Scotland tries to negotiate for its own versions of the special membership terms and opt outs that the UK currently has. This could make trading with existing EU countries – including the continuing UK – more difficult.

Your decision matters – It’s taken a long time to establish our place in the world, and it’s easy to take for granted the positive impact it has today, here in the UK and beyond, as well as for future generations – so it’s important to get in the know. Our comprehensive overview gives you the facts you need to make an informed choice.

Know the facts

The fact is, no one has all the facts. No one can say for sure how successfully an independent Scotland would negotiate its relationships with other countries or its entry into various global bodies. What we do know is that the UK is already an established and respected world power and uses its influence for our common good.

If you remember five things about the UK’s standing in the world make it these:

• We are a member of the EU on unique terms
• We have a respected and influential presence in global affairs
• Our armed forces are world-class
• UK citizens are represented around the world
• We already have the best of both worlds

We are a member of the EU on terms which would be hard to negotiate again.

Thanks to our influence and long-term negotiations, the UK has unique terms for our membership of the EU.

This includes keeping the UK pound and the ability to control our own borders and immigration policy.

The UK’s rebate means that the average Scottish household saves between £750 and £1,470 per year between 2014 and 2010 on the cost of EU membership.

If Scotland leaves the UK it would need to start formal negotiations to join the EU as a new member state – a lengthy and costly process.

We have a strong and respected presence in global affairs.

We were a founding member of the United Nations and have one of only five permanent seats on its Security Council, giving us considerable influence at the highest level over international security and peace issues.

We are a key player within NATO, an important military alliance that helps ensure our national security. And as one of the world’s largest economies we are part of the G7, G8 and G20 groups of countries that discuss and co-ordinate global economic and financial affairs.

We were a founding member of the International Monetary Fund (which fosters global growth and financial stability) and World Bank (which provides assistance to tackle poverty and promote economic development around the world).

Our armed forces are world class, providing both jobs and security for the UK.

The UK is one of the biggest military spenders in the world, investing over £33 billion in our armed forces in 2013/2014. And thanks to our global reputation the UK is the second largest defence exporter in the world after the US.

UK citizens are represented around the world.

The UK works hard to protect both its citizens and its businesses all around the world. From helping travellers in distress, to fighting to protect Scotch whisky from counterfeiting or high taxes abroad, the UK has a vast network of 14,000 people working in embassies, consulates and trade offices to keep us safe and ensure our voice is heard. It would cost a lot in time and money to replicate the countless relationships and trade agreements that the UK has built up.

And it’s not just about doing business – the UK also promotes education and cultural opportunities. For example, the British Council helped to create 1,000 international school partnership projects in Scotland in 2012; and the UK’s international scholarship programmes bring many overseas students to Scottish universities, generating significant income.

We already have the best of both worlds.

People in Scotland benefit from being part of the UK’s international networks and influence on the world stage, while having a devolved government in Edinburgh that is able to pursue the international aspects of its policies for Scotland alongside, and with the support of, the UK Government.

Devolution means that the Scottish Government already has responsibility for delivering international obligations in Scotland.

The UK and Scottish Governments work closely together to promote the interests of people and businesses in Scotland at EU and international level.

Know the numbers

Here’s how being part of the UK…

…helps you abroad

• When you’re abroad for business or pleasure you have access to UK consular representation in over 144 countries

• 760 full-time staff are on hand around the world to help UK citizens who find themselves in difficulty overseas

• Our diplomatic network is one of the biggest in the world, consisting of more than 14,000 people across 267 locations in 154 countries and 12 overseas territories

… helps create jobs

• As part of the UK, the defence presence in Scotland will increase by 2020 to 12,500 Regular Armed Forces personnel and around 4,250 trained Volunteer Reserves

…helps you do business

• Last year alone UK Trade & Investment (UKTI) helped nearly 2,000 Scottish businesses trade with other countries

…helps you stay safe

• £33 billion: people in the UK benefit from one of the largest defence budgets in the world

• Scotland is home to some of our major armed forces bases including Her Majesty’s Naval Base Clyde, which is the biggest employment site in Scotland

…helps others around the world

• Between 2010-2013, UK support helped…

• 30 million people (over half of them women) around the world work their way out of poverty

• prevent 13 million children and pregnant women from going hungry

• 6 million children to go to primary school

Know the answers

Everyone wants answers and yet only after the vote will we really know how an independent Scotland might operate. But there are some key questions regarding our country’s place in the world that it’s important to consider before you make your decision.

Would an independent Scotland automatically become a member of the EU?

Because an independent Scotland would leave the UK and become a brand new state, there is a strong case to say that it would have to go through a formal process to become a member of the EU. That process would have to be negotiated with, and approved by, all EU member states. Those negotiations could be long and complex and would have to tackle issues like whether Scotland would be required to use the euro (currently all new EU member states have to commit to this) and whether it has to join the Schengen travel area (where some member states protect a shared external border, rather than the borders between each individual state, to allow free travel between them). The UK has fought hard to opt out of both of these requirements, but there’s no guarantee that an independent Scotland could do the same.

What international organisations would an independent Scotland have membership of?

Scotland would no longer qualify to join some key economic groups like the G7, G8 and G20. It could play a role as a smaller state, or together with a group of states in others, like the EU, UN or the IMF.

Membership of international organisations doesn’t come for free. An independent Scotland could potentially pay more into the international organisations it joins, but have less influence overall. On our EU membership alone, Scotland will be between £1.9 billion and £3.8 billion better off as part of the UK in the next seven years.

What powers does Scotland already have under devolution to promote its international presence?

As part of the UK Scotland is represented in important international discussions and negotiations where there is a specific Scottish interest. There is also a Scottish Government EU Office based in Brussels, which forms part of the UK’s representation to the EU. Ministers from the Scottish Government can join the UK delegation attending EU Council meetings and, when appropriate, speak on behalf of the UK.

International development is mostly administered by the UK’s Department for International Development (DFID) which has a strong professional presence overseas including in 28 focus countries. Almost half of DFID’s headquarters staff are based in East Kilbride. It is the lead department in the UK’s fight to end global poverty. In addition, the Scottish Government has a targeted development programme to complement UK Government action in countries such as Malawi, Rwanda, Tanzania and Zambia.

Scottish businesses benefit from the active support of over 160 UK Trade & Investment (UKTI’s) offices in more than 100 countries. Additional targeted support for Scottish exports is currently delivered through a partnership between UKTI and Scottish Development International (SDI), which has 26 offices in 15 countries outside the UK. Businesses based in Scotland have the best of both worlds: access to the significant expertise and global reach of UKTI, and the Scotland-specific focus of the SDI effort.

What defence and security would an independent Scotland have?

As part of the UK, Scotland benefits from the full range of UK defence and security capabilities and activities. Government agencies and departments, like MI5 and the Ministry of Defence, defend the airspace, patrol the surrounding seas and help to protect against and respond to natural and man-made threats. The UK has the resources and military capabilities to deal with multiple operations concurrently and is able to respond rapidly to humanitarian crises and to support conflict prevention and resolution.

In the event of separation, Scotland would need to create new security and intelligence capabilities, a new defence force and new capabilities to protect people from online crime and other cyber security threats. The current UK armed forces based in Scotland would not automatically become Scottish on independence. Many critical functions could not be split. Whether replacing or rebuilding these functions, the government in Scotland would have an expensive task: recruiting, training, housing and managing service men and women; developing and maintaining ships, weapons, and planes; and creating support networks such as medical provision.

Scotland, as part of the UK, will continue to play a key role in the integrated defence and security of the UK. With Armed Forces, supported by Departments and agencies such as the Stabilisation Unit, DFID, GCHQ and FCO, enabling Scotland to contribute to stabilisation and humanitarian operations and initiatives in fragile and conflict-afflicted states across the world. As part of the UK, Scotland will continue to be a sizable force for good in today’s fast-changing and globalised world.

How does the UK contribute to international development and global issues like poverty and human rights?

The UK has the power and reach to have a significant impact on important issues like democracy and equal rights and we use our influence and economic scale to make a big difference to the lives of people living in extreme poverty all over the world and create a safer and more prosperous world for the UK. As part of the UK, Scotland is key in tackling some of these issues globally. In 2013 alone, the UK invested £11.4 billion to help developing countries lift themselves out of extreme poverty, second only to the US, becoming the first G8 country to meet the internationally agreed target of spending 0.7% of national income on international aid.