The document discusses how small countries can be economically viable. It notes that the number of states has increased significantly over the last 60 years. As international trade has expanded, it has led to the emergence of new economically viable smaller countries. Several rankings of country competitiveness show that many of the top competitive countries are small European states, including Switzerland, Denmark, and Sweden. The document argues that Catalonia has a population and geographic size similar to these successful small European countries. It presents data showing that smaller European nations have experienced higher GDP growth than larger countries, especially in more recent years. Therefore, being a small country continues to be an advantage for national wealth and competitiveness.

1. Small countries are economically
viable
November, 2011

2. The number of states has experienced a great increase in
the last 60 years
Evolution of the number of states
x 2,6
196
74
1945
Source: “Trade, Growth and the Size of Countries”, Alberto
Alesina, Enrico Spolaore, Romain Wacziarg
2011
2

3. The increase of the international trading is leading to the
birth of new economically viable contries
Evolution of the number of countries and the
internationalisation rate of the econonomy
160
140
0.7
Internationasl
trading VS GBD
0.6
120
0.5
100
Number of states
(Without Africa
subsahariana)
0.4
80
Number of states
0.3
Internationasl
trading VS GBD
(average of 61
countries)
60
0.2
40
20
0.1
0
0.0
1950
1960
Source : “Trade, Growth and the Size of Countries”, Alberto
Alesina, Enrico Spolaore, Romain Wacziarg
1970
1980
1990
3

4. The Global Competitiveness Report, from the World Economic
Forum rates the countries depending on its competitiveness.
Twelve pillars of competitiveness

Basic requirements





Efficency factors




Innovation factors


Institutions
Infrastructures
Macroeconomic environment
Health and Education
Education and Master
Efficiency of the market goods
Labor market efficiency
Development of the financial market
Technological situation
Size of the marketing
Sophistication of the business
Innovation
Source: “The Global Competitiveness Report 2011–2012”, Professor Xavier Sala-i-Martin, Columbia University, Chief Advisor
of the Centre for Global Competitiveness and Performance. World Economic Forum. Geneva, Switzerland 2011
4

5. According to the mentioned report, 8 out of 20 Countries with
greater competitiveness are European small counties
Ranking of the Global Competitiveness Index 2011-2012
Switzerland
Singapore
Sweden
Finland
USA
Germany
Holland
Danmark
Japan
UK
Hong Kong
Canada
Taiwan
Qatar
Belgium
Norway
Saudi Arabia
France
Austria
Australia
5.74
5.63
5.61
5.47
5.43
5.41
5.41
5.40
5.40
5.39
5.36
5.33
5.26
5.24
5.20
5.18
The ranking shows that
small countries are at least
as efficient as the big ones
5.17
5.14
5.14
5.11
Source : “The Global Competitiveness Report 2011–2012”, Professor Xavier Sala-i-Martin, Columbia University, Chief
Advisor of the Centre for Global Competitiveness and Performance. World Economic Forum. Geneva, Switzerland 2011
5

6. The IMD istitute publishes another Ranking where also 8 out of
20 states with great competitiviness are Small European States
Ranking of the World Competitiveness Scoreboard 2011
Hong Kong
USA
Singapore
Sweden
Switzerland
Taiwan
Canada
Qatar
Australia
Germany
Luxemburg
Denmark
Norway
Netherlands
Finland
Malaysia
Israel
Austria
China
UK
Source: “The World Competitiveness Scoreboard
2011”, Lausanne‟s Institute for Management Development
100.0
100.0
98.6
94.1
92.6
92.0
90.8
90.2
89.3
87.8
86.5
86.4
86.3
85.7
84.4
84.1
81.6
81.6
81.1
80.3
6

7. In 2011, the IMD institute has released a new ranking with the
states that are in a better position to overtake the crisis

Denmark is the first one.

Followed by small nations such:


Big States have a worse position in that Ranking:







Qatar, Norway , Hong Kong, Switzerland i Sweden
USA: 28th position
China: 18th position
Brasil: 22nd position
Germany: 24th position
Japan: 26th position
South Corea: 29th position
Big states from the Southern Europe drop dramatically in the ranking



France: 44th
Italy: 47th
Spain: 50th
According Prof. Stephane Garelli, head of studies at the IMD:
 Small economies are better prepared to thrive and survive during a crisis
 ...and manage a more secure financial policy
Source: “The World Competitiveness Scoreboard
2011”, Lausanne‟s Institute for Management Development
7

8. Catalonia is geographically as big as the some of the most
competitive European states
European countries with similar dimensions of Catalonia
(surface on Thousands of km2)
Irland
Lithuania
Latvia
Croatia
Bosnia
Eslovàquia
Estonia
Denmark
Netherlands
Switzerland
Moldavia
Catalonia
Belgium
Albania
Macedònia
Slovenia
Montenegro
Cyprus
Source: Wikipedia, 2011
70
65
65
57
51
49
45
43
42
41
34
32
31
29
26
In terms of surface, Catalonia is
similar to
Denmark, Netherlands, Switzerlan
d or Belgium
20
14
9
8

9. Catalonia has a similar population to the some of the most
competitive European states
Population of the European States
(milions of inhabitants)
Germany
UK
France
Italy
Spain (including Catalonia)
Poland
Romania
Netherlands
Greece
Portugal
Belgium
Czech Republic
Hungary
Sweden
Austria
Bulgaria
Switzerland
Serbia
Catalonia
Denmark
Slovakia
Finland
Norway
Croatia
Moldavia
Irland
Bosnia
Lithuania
Albania
Latvia
Macedonia
Slovenia
Estonia
83.3
61.1
59.8
58.8
45.1
38.6
21.7
16.3
10.6
10.4
10.3
10.3
10.1
9.1
8.2
7.6
7.5
7.5
7.2
5.6
5.4
5.2
4.5
4.4
4.4
4.2
3.8
3.6
3.6
2.4
Catalonia has a population similar to
Sweden and Switzerland and greater
than Denmark, Finland and Norway.
2.1
1.9
1.4
Note: Including countries with a population greater than 1 Milion people
Source: Wikipedia, 2011
9

10. The smallest European countries have experienced a
greater growth compared with the big ones (1/2)
Increase of the GBD per capita; Founders of the EU
1979 - 1991
The 3 smallest
countries founders
of the EU
The 3 bigest
countries founders
of the EU
Source: Adam Price (Harvard University)
1992 - 1998
2.0
%
1.7
%
1999 - 2007
2.3
%
1.3
%
2.6
%
1.6
%
10

11. The smallest European countries have experienced a
greater growth compared with the big ones (2/2)
European Countries. Growth of the GBD
5%
The small states have
experienced a greater
grow between 2002-2007
States with population
between 4,6 and 10,5 million
people
4%
3%
2%
States with a
population greater than
38 milion people
1%
0%
2001
Source: Eurostat
2002
2003
2004
2005
2006
2007
11

12. EU members recently independent had grown more than
twice that the medium value of EU
Growth of the GBD Creixement del PIB
9%
8%
7%
European Countries
recently independent
6%
(Czech, Slovakia, Croatia, Latvia, S
lovenia, Estonia)
5%
4%
3%
European Union
Average
2%
1%
0%
2000
Source: Eurostat
2001
2002
2003
2004
2005
2006
12

13. The smallest countries of the European Union are the ones with
greater growth; They are overtaking the crises with a better shape
Growth of the European GBD VS Population. 2nd quarter of 2011
4.0%
Lithuania
The smallest countries have experienced a
growth greter than the 0,7%
3.0%
Growth of the
GBD during 2nd
quarter 2011
Latvia
2.0%
Estonia
Irland
1.0%
The biggest countries have experienced a
growth below teh 0,3%
Finland
Austria
Sweden
Belgium
UK
Spain
Slovakia
Italy
France
0.0%
0
20
40
60
Germany
80
Population (milions of inhabitants)
Source: El Punt-Avui, 19/09/11
13

14. Summary
„SMALL‟
being
Will continue being a plus regarding the wealth for the Nations
continuarà essent un plus en matèria de riquesa per a les Nacions
Jim Mather, ex Minister for Enterprise, Energy and Tourism and until the
2011 election, Member of the Scottish Parliament.
Barcelona 21Setembre2011
14

15. Només amb un Estat propi
Catalunya serà econòmicament viable
Empresaris per l’Estat propi
www.ccncat.cat
info@ccncat.cat