In his blog today, British MP Douglas Carswell makes the following point concerning the prospects of a Scottish referendum on independence:

During the coming referendum campaign, I hope that no one in Scotland will be put off by the idea that Scotland is somehow “too small” to prosper as a self-governing nation. Norway, Switzerland and Singapore are each of a comparable size, and seem to be doing okay. Indeed, look at the most successful nations around the world in terms of per capita GDP, and there seems to be something of a small state advantage.

The United States is the one large-state/high GDP per capita anomaly, but we should consider that up until recently the US was governed by its constituent states, especially on domestic/economic matters. Its decline of late can no doubt be in some part attributed to the more European metropolis-colony economic model it has adopted during the post-World War II “imperial” era. Indeed, outside of Silicon Valley and the technology revolution, nothing meaningful has happened in the American economy since prior to World War II. 

Countries like Chile, looking to accelerate growth and bring their economies into the First World should consider the power of devolution, decentralization, and local control. If Chile were a loose confederation of 10-20 Singapores (which would clearly be feasible in a country that is never more than 265 miles wide), it could rapidly increase its population through immigration, facilitating new centers of commerce and innovation and becoming a trading conduit not only for the rest of Latin America, but for the Asia-Pacific region, not to mention a natural place for the coming tide of US emigration, particularly amongst the young, borderless creative class.

Unfortunately, Chile seems committed to marginal solutions that will lead to incremental economic growth but otherwise preserve the status quo, especially when it comes to the power relations of Santiago to the regions.