Small northern European states have been a major point of reference in the Scottish independence debate. For nationalists, they have been an 'arc of prosperity' while in the aftermath of the financial crash, unionists lampooned the 'arc of insolvency'.Both characterisations are equally misleading. Small states can do well in the global market place, but they face the world in very different ways. Some accept market logic and take the 'low road' of low wages, low taxes and light regulation,...