PDA

View Full Version : Intersting facts about Ireland today.


so.cal.fan
06-29-2005, 01:36 PM
The End of the Rainbow
E-Mail This
Printer-Friendly


By THOMAS L. FRIEDMAN
Published: June 29, 2005
Dublin

Here's something you probably didn't know: Ireland today is the richest country in the European Union after Luxembourg.

Yes, the country that for hundreds of years was best known for emigration, tragic poets, famines, civil wars and leprechauns today has a per capita G.D.P. higher than that of Germany, France and Britain. How Ireland went from the sick man of Europe to the rich man in less than a generation is an amazing story. It tells you a lot about Europe today: all the innovation is happening on the periphery by those countries embracing globalization in their own ways - Ireland, Britain, Scandinavia and Eastern Europe - while those following the French-German social model are suffering high unemployment and low growth.


Ireland's turnaround began in the late 1960's when the government made secondary education free, enabling a lot more working-class kids to get a high school or technical degree. As a result, when Ireland joined the E.U. in 1973, it was able to draw on a much more educated work force.

By the mid-1980's, though, Ireland had reaped the initial benefits of E.U. membership - subsidies to build better infrastructure and a big market to sell into. But it still did not have enough competitive products to sell, because of years of protectionism and fiscal mismanagement. The country was going broke, and most college grads were emigrating.

"We went on a borrowing, spending and taxing spree, and that nearly drove us under," said Deputy Prime Minister Mary Harney. "It was because we nearly went under that we got the courage to change."

And change Ireland did. In a quite unusual development, the government, the main trade unions, farmers and industrialists came together and agreed on a program of fiscal austerity, slashing corporate taxes to 12.5 percent, far below the rest of Europe, moderating wages and prices, and aggressively courting foreign investment. In 1996, Ireland made college education basically free, creating an even more educated work force.

The results have been phenomenal. Today, 9 out of 10 of the world's top pharmaceutical companies have operations here, as do 16 of the top 20 medical device companies and 7 out of the top 10 software designers. Last year, Ireland got more foreign direct investment from America than from China. And overall government tax receipts are way up.

"We set up in Ireland in 1990," Michael Dell, founder of Dell Computer, explained to me via e-mail. "What attracted us? [A] well-educated work force - and good universities close by. [Also,] Ireland has an industrial and tax policy which is consistently very supportive of businesses, independent of which political party is in power. I believe this is because there are enough people who remember the very bad times to de-politicize economic development. [Ireland also has] very good transportation and logistics and a good location - easy to move products to major markets in Europe quickly."

Finally, added Mr. Dell, "they're competitive, want to succeed, hungry and know how to win. ... Our factory is in Limerick, but we also have several thousand sales and technical people outside of Dublin. The talent in Ireland has proven to be a wonderful resource for us. ... Fun fact: We are Ireland's largest exporter."

Intel opened its first chip factory in Ireland in 1993. James Jarrett, an Intel vice president, said Intel was attracted by Ireland's large pool of young educated men and women, low corporate taxes and other incentives that saved Intel roughly a billion dollars over 10 years. National health care didn't hurt, either. "We have 4,700 employees there now in four factories, and we are even doing some high-end chip designing in Shannon with Irish engineers," he said.

In 1990, Ireland's total work force was 1.1 million. This year it will hit two million, with no unemployment and 200,000 foreign workers (including 50,000 Chinese). Others are taking notes. Prime Minister Bertie Ahern said: "I've met the premier of China five times in the last two years."

Ireland's advice is very simple: Make high school and college education free; make your corporate taxes low, simple and transparent; actively seek out global companies; open your economy to competition; speak English; keep your fiscal house in order; and build a consensus around the whole package with labor and management - then hang in there, because there will be bumps in the road - and you, too, can become one of the richest countries in Europe.

"It wasn't a miracle, we didn't find gold," said Mary Harney. "It was the right domestic policies and embracing globalization."

Kreed
06-29-2005, 07:39 PM
NATIONAL HEALTH CARE completes the package + English Speaking.
yeah, even my firm has an office there.

Kreed
06-29-2005, 07:57 PM
Look at it this way: if the USA does a National Health Plan -- the Right Way --
it will save USA corps BILLIONS. in a way, its like providing InfraStructure.
no longer optional, almost Required. ..... its overdue. China Exports with
little regard to making PROFIT --- Why? Because it uses EMPLOYMENT to
prevent Social Discontent. Keep lots of workers making money with Exports
High. Idle hands = Protests. Ergo: 1 way to satisfy USA corps is to pick up
the tab on insurance. Is it worth it? i thing YES. All things must change.
Its not the debate on if we get better coverage with National vs Private: thats
too simple; its whether we want OUR workers working & what should our gov't
do to make it happen. If you use smarts, we can make corps pay in another
way to compensate for the freebie.

PaceAdvantage
06-29-2005, 08:10 PM
This is a thread about Ireland, not USA Health care issues. Please keep on topic Kreed.

ElKabong
06-30-2005, 01:09 AM
While I dislike his political leanings, I appreciate and respect his study and comments on economics. I'm getting his latest book this weekend. Can't wait to get it.

"Keep corporate taxes low"? Great idea :)

toetoe
06-30-2005, 01:24 AM
PA,
Dear Derek misunderstood. He thought you were telling him to stay on the psychotropics.

HeHe.

Dave Schwartz
06-30-2005, 01:52 AM
Certainly not the Ireland I recall when going to school there. It was poor then. (But then, I am getting old!)

Amazing!

Regards,
Dave Schwartz

so.cal.fan
06-30-2005, 11:08 AM
El Kabong...
I'm sure you'll enjoy the book.
Friedman is very conservative on some issues and liberal on others.....he is a staunch believer in Capitalism.......and blames Socialism and Communism for creating poor countries.
He is fearful of radical Islam and Communism as being very negative forces against the progress of the world.
He gives the example of India....after WW2, they leaned towards Communism, their country stagnated under an inept Socialistic government.
Once this changed.....look what happened.
Ireland dropped restrictions to business and took off.
He states in his book that if you want to insure a country to be poor and non productive....install a Socialist or Communist government.
The main message in his book that I got was EDUCATION....EDUCATION....EDUCATION. He is fearful the US will fall behind because not enough of our young people are going into science, math and engineering. Too many attorneys.
I don't think any of us will disagree with that. ;)

Suff
06-30-2005, 12:24 PM
Ted Kennedy had a lot to do with Irelands Resurrection. We will NEVER forget!

so.cal.fan
06-30-2005, 12:40 PM
How about Bill O'Reilly and Sean Hannity??? :lol:

Suff
06-30-2005, 01:33 PM
[QUOTE]How about Bill O'Reilly

He's actually Ok in this regard. Mentions his heritage frequently, has spent time in the Anglo-Irish arena and knows the score.



and Sean Hannity??? :lol

N.F.G.

Protestant Sympathizer. Down deep wish's he was Presbyterian.

Tom
06-30-2005, 10:45 PM
I'm half Irish and I still put my pants on one leg at a time.
I admit, I don't use my hands, but then......:rolleyes: