Preface
This is the thirteenth edition of the Scottish Economic Report ( SER). The SER is published bi-annually and presents a detailed review of the progress and prospects for the Scottish Economy, together with analysis of the broader context in which it is set.
The Scottish Economic Report June 2006
This edition of the Scottish Economic Report has four main sections:
- Chapter 1: The Scottish Economy: Recent Developments and Future Prospects, provides an overview of the Scottish economy. This section summarises the recent developments and future prospects for the Scottish economy.
- Chapter 2: Global, European and UK Economic Developments demonstrates the linkages between Scotland and the wider economic environment. The chapter provides a synopsis of economic developments in the global, European and United Kingdom economies.
- Chapter 3: This chapter discusses the Executive's key policies for growing the economy, through outlining the progress in taking forward the key elements of the Framework for Economic Development in Scotland. This edition focuses on the new Sustainable Development Strategy, as well as the Executive's response to the Enterprise & Culture Committee's Business Growth report.
- Chapter 4: Selected Economic Issues provides an opportunity for brief surveys of selected economic issues to be presented.
Other economic related publications
The Framework for Economic Development in Scotland (FEDS) has a clear vision for economic development: 'to raise the quality of life of the Scottish people through increasing the economic opportunities for all on a socially and environmentally sustainable basis'.
In March 2005, Scotland joined the UK Government and the other devolved administrations in signing up to a new UK framework for sustainable development One Future - Different Paths: The UK's Shared Framework for Sustainable Development 1. This framework sets out a common goal for sustainable development across the UK.
The model for the UK's strategic approach to sustainable development reflects the structure of decision-making established by the devolution of powers to Scotland, Wales and Northern Ireland. Each devolved body will have its own strategy, though there are still common challenges and goals and the Executive will work with the UK Government and other devolved administrations towards achieving those goals.
Choosing Our Future: Scotland's Sustainable Development Strategy 2, published in December 2005, sets out in further detail Scotland's commitment and contribution to fostering a sustainable future, building on the actions already being taken by individuals, businesses, local authorities and communities.
The Executive has now published its response to the recent Business Growth Inquiry 3, carried out by the Enterprise and Culture Committee of the Scottish Parliament. It sets out the Executive's thinking on business growth, placing it in the context of recent global economic developments, and highlights policies, programmes and projects that have been rolled out in order to positively influence business growth in the Scottish economy.
Finally, the Atkinson Review, published in January 2005, considered the future development of government output, productivity and associated prices indices for the UK national accounts. In response to the Review, the Executive published a Scotland-focused implementation strategy in June 2005 that sets out exactly how the principles and recommendations of the Atkinson Review will be taken forward in Scotland.
The Executive's strategy committed the Executive to review its initial action plans at regular intervals and to produce updates every quarter. These updates are available from the Scottish Executive website 4.
Acknowledgements
Finally, I would like to acknowledge the major contributions to the preparation and compilation of this report by David Ritchie, John Jellema and Karin Seyfert. The report reflects major contributions from colleagues in the Office of the Chief Economic Adviser and the Executive as a whole. I would also like to thank Stephen Boyle and Patrick Watt from Futureskills Scotland for their paper on Skills and Scotland's economy.
Dr Andrew Goudie
Chief Economic Adviser
Scottish Executive
June 2006