The Scottish Government is heading for failure in terms of its economic productivity targets, according to experts at Glasgow and Strathclyde Universities.
The Scottish Government is heading for failure in terms of its economic productivity targets, according to experts at Glasgow and Strathclyde Universities.
They claim ministers should shift to a different measure of productivity in the current climate, as their projections are doomed in terms of meeting current targets.
The Centre for Public Policy for the Regions admits these are now hard times, saying: "In publishing this paper, we are very conscious that the implications of the current financial crisis engulfing world markets and impacting on economies, currently hangs over everything."
"In addition, relative shifts and trends are more difficult to decipher during a downturn and any apparent gains on comparator countries may only be temporary. It will only be when real positive growth rates return that a more considered judgment can be made."
The group claim of Scottish Government targets:
- It will be difficult to meet current targets.
- Greater clarity is needed over current rules.
- Productivity is the most important driver of long-term performance.
The group concludes: "In many ways now is a good time to face up to hard choices and to make difficult decisions.
"If we can get some of the longer term decisions right on: productivity, demographics and energy, then Scotland will be in a much better position in a few years time to make that step change necessary to begin to achieve some of the ambitious targets set out here."
CPPR's director, Richard Harris, said the main objective of the report was to investigate the weaknesses of the current targets and, where necessary, suggest alternative, more appropriate, targets for Scotland.
"We also suggest that greater prioritisation is needed, with more emphasis being put on improving productivity, whilst remaining within the environmental target." he said.
Co-author John McLaren said: "The current economic and financial difficulties should be used as an opportunity to confront long standing problems in the Scottish economy and to take the difficult decisions necessary to put Scotland on a good footing to prosper during the eventual recovery."
