U.K. Moves Further From Legacy With Devolution After Scottish Vote
Britain Avoided Breakup, but Global Influence Seen Sliding
Thanks. Not surprised, and not sorry to see him go. This for the bit of history, and for the photo.
ByAlistair MacDonald
Sept. 19, 2014 1:27 p.m. ET
An 1809 engraving shows the Duke of Queensbury and Dover presenting the Act of Union to Queen Anne in 1707. Everett Collection
The 307-year-old union of the United Kingdom has been saved. But dodging a breakup Thursday in the Scottish independence referendum may not stop a further slide in London's influence both at home and on the world stage.
Some historians and politicians say the strong showing of the Scottish independence campaign makes that nation's eventual exit from the U.K. more likely in the long run—a move that could add to a slide in the U.K.'s global influence.
Meanwhile, British Prime Minister David Cameron .. http://topics.wsj.com/person/C/David-Cameron/5940 — who convinced Scots to stay in the U.K. in part by promising to devolve more power to Edinburgh—made a surprise proposal Friday to offer the same kind of powers to England, Wales and Northern Ireland, the U.K.'s other nations.
Although foreign policy would remain centralized, the prospect of sweeping political change in the U.K. signals a further step in the long, slow atomization of global power and influence that once resided in the British capital. By devolving powers to its four nations, the U.K. moves further from its roots as a unitary state and, some argue, risks stoking further secessionist sentiment.
"What occurred overnight has the potential to be the most important thing that has happened to the union since the 19th century reforms," said Michael Collins, a professor of British history at University College London, referring to an electoral overhaul that made voting more representative of the country. "We are on the road to radical devolution and possibly a federal union."
The U.K. was once an aggressive colonizer, waging wars across the globe, enslaving millions for a period and creating national borders that continue to be fought over. At the same time, the U.K.'s legal system and model of parliamentary democracy were adopted around the world. Its pursuit of free trade and industry helped create the modern global economy, and its thinkers and scientists, people like Adam Smith and Charles Darwin, shaped human thought.
"It was the most successful political union in history, a good example of how you can bring states together by negotiation that has influenced the world," said Andrew Thompson, a lecturer in modern British history at Cambridge University.
On Friday, that union looked more uncertain going forward. Thursday's near-death experience is likely to spur other calls for more local control. The U.K. government's promises to the Scots may also stir resentment outside of Scotland that could undermine the U.K.
The United Kingdom of Great Britain was formed in 1707 with the political and economic union of England, Wales, and Scotland. In 1800, Ireland was added, creating a union that would last in that form until what became the Republic of Ireland won independence in 1922.
The period saw the U.K. become the world's first industrialized economy. The innovations of that era, from the train to mechanized weaving, boosted productivity and created the ships and armaments that turned the U.K. into the world's foremost economy and military power.
The new union built an empire that held sway over approximately one-quarter of the world's population by its peak in the 1920s. But in reality, its relative power was in decline by the early 20th century and was fully eclipsed by the U.S. and Soviet Union by the end of World War II.
In its heyday the strength of the U.K.'s political union, with its strong centralized structure, was a key element in its global heft. Though controlled from London, British power and innovation came from across the country, and Scotland punched above its weight.
"We talk of a British Empire, not a Scottish or English one," said Maya Jasanoff, professor of history at Harvard University. "The manpower, through its regiments, imperial administrators and trading houses, were disproportionately Scottish."
One third of colonial governors between 1850 and 1939 were Scottish, a population that comprised less than 10% of the U.K., according to Mr. Thompson.
Former colonies as diverse as Canada, Australia and India followed the U.K's form of parliamentary democracy. English is the official language in more than 50 sovereign states. Britain's common law system now forms a foundation for around 30% of the world's legal systems, including the U.S., according to Mr. Collins.
While many of the union's most influential figures may have thrived in their separate countries, it was the U.K's global reach that spread their accomplishments, historians say. The empire acted as a conduit for the U.K.'s innovations, culture and sports.
But as the empire was key to the U.K.'s power and cohesion in its prime, its speedy demise took away a common purpose that helped integrate the union. This week's moves to devolution are another step in its adaptation to a different world order.
"The story here is not about decline, it is about adaptation and a new role," Mr. Collins said.
The U.K. has maintained global sway as the world's sixth-largest economy, and through legacies such as its popular culture and academic institutions. Some historians and politicians believe that the velocity of its decline on the global stage would increase if disappointment over devolution gained out of the independence campaign leads to a revival of secessionist sentiment later.
A Scottish exit, for example, would have sliced off a significant part of U.K. GDP, pushing the country further down the list of the world's largest economies, while shrinking a military already cut heavily in recent decades.
Such an event "would diminish the U.K.," said Robert H. Tuttle, a U.S. ambassador to the U.K. under George W. Bush. "Our best ally would simply be a smaller country."
—Drew Hinshaw contributed to this article.
Write to Alistair MacDonald at alistair.macdonald@wsj.com
The right-wing business tycoons behind Alex Salmond's independence campaign
Yep, Salmond is gone in November, so this only out of interest (ooi), heh, and for the historical record.
LOL The more Trump added as an afterthought.
By Ian Dunt Monday, 15 September 2014 12:38 PM 12
Murdoch: One of Salmond's many friends who do not chime with his PR Murdoch: One of Salmond's many friends who do not chime with his PR
At first sight, Rupert Murdoch and Alex Salmond do not make obvious bedfellows. Murdoch is the right-wing media mogul whose outlets, from the News of the World to Fox News, slap down progressive policy across the world. Salmond is the visionary leader promising a more socialist society for Scotland if it can break free of the rest of the UK.
But Murdoch's trip to Scotland last week was just the latest stage in a long friendship between the two men, in which back-room efforts to help Murdoch's business goals coincide with favourable media coverage.
Salmond enjoys this type of relationship with several wealthy right-wing figures from across the world. He "called in" a golf course for Donald Trump above the wishes of local residents. He accepted donations from Stagecoach boss Brian Souter shortly before changing SNP policy on bus regulation. The list goes on.
The full extent of Salmond's friendship with Murdoch only really came to light during the phone-hacking scandal. A month after the News of the World shut down it was revealed Salmond had held over two dozen meetings with Murdoch, his son James - who ran News International and BSkyB - and other Murdoch editors and executives.
During this time the SNP developed a secret policy of backing Murdoch's BSkyB bid, which was not to be made public. Emails released by News Corporation showed Salmond agreed to make a call to Jeremy Hunt, then media secretary, to support the takeover attempt.
Meanwhile, social events continued apace. Salmond and Murdoch exchanged gushing letters, held private dinners and offered each other tickets to sporting events. Salmond was Murdoch's guest of honour for an unveiling of his company's new printing presses. Murdoch was given tickets by Salmond to see a National Theatre play on Iraq. He then sent him tickets to the Ryder Cup golf tournament as an official Scottish government guest. The media mogul was the first minister's guest of honour at a special pageant in Edinburgh castle. Murdoch called Salmond the "most brilliant politician in UK".
The friendship coincided with a period of growing support for the SNP from Murdoch's Scottish newspaper. In 2007 the Sun put the SNP logo in a noose on its front page with a dire warning about calamity if Scots opted for the nationalists. But by the next election it abandoned its support for Labour and swung behind Salmond. Editor David Dinsmore wrote to him days afterwards congratulating him on his "astonishing victory".
As the 'Yes camp gained ground in the polls last week, Murdoch said a vote for independence would be a "huge black eye for whole political establishment" and then added: "Everything [is] up for grabs". It's unclear what he meant by this, but in the same week Salmond went on the offensive against the BBC, refusing to answer Nick Robinson's questions at a press conference and threatening to force it into an inquiry about Treasury leaks. On Sunday, a large demonstration of 'Yes' supporters took place outside the BBC building, in which large posters of Robinson were raised singling out the journalist for allegedly biased reporting.
Accusations of cronyism have long haunted Salmond. His relationship with Stagecoach boss Souter has proved hardly less problematic than his one with Murdoch. Souter founded Stagecoach with his sister and proceeded to take full advantage of the deregulation of bus services in the UK. He ran free or low-fare bases on local routes to push other firms out the market – a practice deemed "predatory, deplorable and against the public interest" by the Monopolies Commission.
The tycoon had a sideline in anti-gay rights campaigning. He spent a million pounds organising a private referendum across Scotland against attempts to repeal the infamous Section 28 law outlawing the 'promotion of homosexuality'. He warned society was in danger of "imploding" into a "Babylonian-Greek" culture where sex is "primarily a recreational activity", if "traditional marriage" continued to decline.
In 2007, Salmond received a big donation from Souter and called him "one of the outstanding entrepreneurs of his generation". The donation came not long after the party opposed the right for gay couples to be given equal treatment by Catholic adoption agencies and the snubbing of a gay rights debate. One month after the donation, the SNP dropped its commitment for increased regulation of the bus network.
Similar complaints were made when Salmond rode roughshod over the wishes of local residents and planners to "call in" the decision to approve Donald Trump's golf complex plan on the Aberdeenshire coast.
The area was one of special scientific and environmental sensitivity. Councillors rejected the development. Salmond's government overruled them.
Two documentary films were made about the row by Anthony Baxter. To his credit, Trump did at least agree to talk to the director. But after four years of asking for an interview, Salmond refuses to meet with him.
Baxter said:
--- "Whatever you may think of the Trumps, they cooperated fully and answered all of our questions.
"The same can't be said of Scotland's first minister Alex Salmond, whose government made the decision to allow Trump to destroy a protected conservation site of special scientific interest, in order to build Aberdeenshire's 62nd golf course.
"Our efforts to interview the first minister took up several months. To begin with, his office requested that any interview be played in its entirety in the final film. After we refused, his office scheduled, postponed, rescheduled, then finally cancelled the interview at the last minute.
"Among other things, we wanted to ask the first minister on camera about the effect of the Trump golf course development on local residents, including a 90-year-old woman who hasn't had a proper water supply for four years, and about what happened to the 6,000 jobs his government promised when approving the development." ---
Salmond's assessment of good business practice was raised again when it emerged how strongly he egged on the calamitous acquisition of ABN Amro, which sunk the Royal Bank of Scotland (RBS).
In 2007, Salmond wrote to Fred 'the Shred' Goodwin:
--- "I want you to know I am watching events closely on the ABN front. It is in Scottish interests for RBS to be successful, and I would like to offer any assistance my office can provide. Good luck with the bid." ---
It was a remarkable letter to have sent. The Scottish first minister was advising an FTSE 100 company to load up on debt and make a highly questionable acquisition which would later come to destroy it. A few months and £45 billion in taxpayer's money later, Salmond admitted he regretted it. But for many businessmen, the link between friendship with Salmond and policy-making was clear enough.
Many wealthy right-wingers behind the Scottish independence campaign have a very different view of Scotland to the one being promoted by SNP's official literature. Social democracy and a generous welfare system are nowhere to be seen in this account. Instead, independence will open up the economy to further private interests as Scotland cuts down on regulations to attract foreign investment.
As Michael Fry, the founder of independence site Wealthy Nation, said: "We must make clear to voters that they can most readily make their country better by emulating their Victorian forebears in the pursuit of profitable opportunities."
Jim McColl, who is domiciled in Monaco with his £800 million fortune, is an official economic adviser to Salmond. His vision of Scotland is very far away from the aims of campaigners on the street. It is also very different to Salmond's rhetoric, although not to his actions. After all, despite demanding more tax powers for a fairer society, the SNP leader's only actual tax policy is to cut corporation tax by three per cent below the rest of the UK.
The PR for the 'Yes' camp remains resolutely left-wing and idealistic. But behind the scenes, there are men of a quite different character egging it on.
News 
Market Data 
Discover 
