SMALL NATIONS IN A BIG WORLD

Small states can face the world in very different ways. Some take the `low road' of low wages, low taxes, light regulation and reduced public services; others take the `high road' of social investment, with a larger public sector and higher taxes, requiring innovative government, flexibility and social partnership. Comparing the experience of Scandinavia, the Baltic states and Ireland, the authors ask what lessons can be learned for Scotland. They conclude that success is possible but that hard choices would need to be taken.