By James Kim
Contributing Writer
It is no surprise that gaining independence from the United Kingdom is no easy task. The United States had ten years of anarchy before ratifying the Constitution; India suffered a violent partition that divided her into two (eventually three) separate nations; and several newly formed countries of the developing world underwent and continue to endure civil wars and unstable governments. A referendum for Scottish independence has been scheduled for a vote later this year. Even though Scotland is a well-developed region with the highest per capita income in the whole of the U.K., that fact will not give her an exception from the difficulties of self-determination if the referendum passes in September.
However, there is a commonly held view among supporters of the independence movement and the Scottish National Party that petroleum would ease the troubles in the early days of home rule. Aberdeenshire, where most of the Scottish oil industry is headquartered, serves as a major SNP voting bloc and even forms the constituency for First Minister Alex Salmond, the main proponent for independence. Scotland’s petroleum reserves are located in the North Sea, which it shares with Norway. The Norwegian success with its lucrative resource has become a rallying cry for the independence movement, as unlike their prosperous Scandinavian neighbor, the Scots have no control over the tax revenues of the North Sea petroleum industry. London instead has the final say in wealth redistribution, leaving the Scots with only a fraction of their rewards. Relationship with the Westminster Parliament is becoming more contentious due to the domination of the Conservative Party, a political group long mistrusted by the majority of Scots. The Tories’ move to privatize the British postal service and even the NHS has frightened the socialist leaning Scots, who fear that their taxes would only be used against them. Thus, the rise of the independence movement is a response to the urgency of making sure that Scottish resources stay with the Scots.
Yet, oil cannot be viewed as a panacea to Scotland’s economic woes. OPEC recently released a statement that the discovery rate of new wells in the North Sea is at its lowest in three decades, initiating fears that production may have already reached peak capacity. To make matters worse, the Westminster Parliament stated that it would veto Scotland’s retention of the pound, a significant blow to the region’s financial security since oil is traded in American dollars. Losing a currency that has more value than the American greenback will create more obstacles than solutions for an independent Scotland.
Having a natural resource that everyone needs does not necessarily make a nation independent. While it does lead to a spirit of nationalism due its huge role in the local economy, oil also carries the risk of attracting foreign powers that want to possess all of its rewards. England knows that it will lose its tax benefits if Scotland gains full control over its own resources; a potential loss of billions of pounds forces Westminster to urge both the Conservatives and Labourers to hinder the SNP’s attempts at separation. However, Scotland also realizes that remaining in the union would prove to be a zero-sum game, as the price of the union means gambling with a hostile right-wing political party that has a sour history with the Scottish people. Despite the importance of black gold, it alone cannot break the stalemate between a compromised union and an uncertain independence.
Images by Berardo62
