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Future of Ireland


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Ireland Following Financial Crisis

Ireland Following Financial Crisis

Published in: News & Politics, Business

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  • With that move came enormous economic progress in industrial countries, including the recovery of war-torn Europe and Japan and, as time went on, in various developing countries.
  • There have been serious problems with income-distribution around the world, despite strong growth and global integration.
  • We collectively must also address the immediate need to strengthen the economy via good Government, create jobs, and protect people affected by the economic crisis.
  • Transcript

    • 1. THE FUTURE OF IRELAND What Next ???
    • 2. Background
      • In the six decades since the end of the second world war, there has been a broad movement around the world toward a model of market-based economics, public investment and global integration.
    • 3. Background
      • With that move came enormous economic progress in industrial countries, including the recovery of war-torn Europe and Japan and, as time went on, in various developing countries.
      Source: Newsweek Magazine
    • 4. Change ?
      • The evidence, in other words, strongly suggests that a market-based model is still the best way forward, or is it?
      • Substantial change must be made however in many key areas.
      • Even before the recession hit, our current model had displayed major shortcomings that markets by their nature, won’t address and that need to be met through public policy.
    • 5. Solutions ?
      • The broader point here is that the market-based model must be combined with strong and effective government, nationally and transnationally.
      • This is to deal with critical challenges that markets won’t adequately address.
      Source: Newsweek Robert E. Rubin 2010 Former Secretary of the US Treasury (1995-1999)
    • 6. Solutions ?
      • We collectively must also address the immediate need to strengthen the economy via good Government, create jobs, and protect people affected by the economic crisis.
    • 7. Ireland’s Situation
      • In 2009 Ireland was spending €70 million a day!!
      • The National Debt is now almost €12 billion higher than previous years, as the tax take sinks by 19%
      • Tax Revenue has fallen by an unprecedented €7.7 billion
      Source: Irish Times / RTE
    • 8. Ireland’s Situation
      • The reason for the €11.9 billion year-on-year deterioration in the exchequer balance is in the main, though only in part, the €4 billion payment to bail out Anglo-Irish bank.
      • At the end of 2009 the budget deficit stood at a soaring €24.6 billion – almost €25 billion, compared with €12.7 billion deficit at the end of the previous year.
      Source: Irish Times / RTE
    • 9. Exchequer Balance
      • 2007
      • Tax Revenue: €47 billion
      • Public Spending: €48 billion
      • Deficit: €1.6 billion
      • 2009
      • Tax Revenue: €33 billion
      • Public Spending: €56 billion
      • Deficit: €24.6 billion
      Source: RTE NEWS
    • 10.  
    • 11. European Debt / Population
        • UK - €800 billion
        • Belgium - €309 bn
        • France - €1.3 trillion
        • Germany - €1.6 tn
        • Italy - €1.6 trillion
        • Denmark - €78 bn
        • Austria - €176 bn
        • Greece - €237 bn
        • Netherlands - €346bn
        • 61.3 million
        • 10.7 million
        • 64.1 million
        • 82.1 million
        • 59.8 million
        • 5.4 million
        • 8.3 million
        • 11.2 million
        • 16.4 million
      Source: Reuters
    • 12. Ireland
        • National Debt:
        • € 75 billion
        • € 17,045 each (per head)
        • owed by every man woman and child
        • Population: 4.4 million
    • 13. Ireland
        • € 54 billion set aside for NAMA – not included in the previous figures and will not appear on the exchequer’s balance.
        • NAMA – National Asset Management Agency.
        • It is the set up of a “bad bank” – to manage the big bank’s bad loans…some regard this as a further “bail-out” of the banks if the loans are not repaid.
    • 14. The United States
      • Deft handling of economic policies by the Federal Reserve and the Treasury Department under both Bush and the new Obama administration prevented the crisis from degenerating into a 1930s – style meltdown.
      • It is still the worst financial crisis since the 1930s however.
    • 15. The United States
      • US Deficit stands at $1.4 trillion for 2009
      • $825 billion stimulus package has been introduced by President Obama.
      • The Strategy to stem the downturn in the economy is:
        • To inject extra funds to stimulate the country in the hope that this will help the US economy in the longer term.
        • The Budget deficit will be 10% of national income.
    • 16. The United States
      • The Strategy in the US is:
        • Use the money for middle – class assistance.
        • Infrastructure Development
        • Direct aid to American States.
        • Jobs Programme
        • Green Energy Projects
        • Nuclear Energy Projects.
    • 17. Global Economy
      • Although unemployment remains intolerably high, signs of recovery abound, and confidence is returning both to consumers and businesses in the States.
      • Globally the recovery has been even faster, with China, South Korea, Brazil and others enjoying an amazing rebound in exports.
    • 18. The World Situation
      • Even the good news isn’t all good. In an odd way, the recovery may have come too soon – since it’s meant that the crisis never got bad enough to force the kind of lasting solutions the United States, and the world , badly needed.
      Source: Newsweek Francis Fukuyama (Bernard L. Schwartz Professor of International Political Economy)
    • 19. The 1930s
      • During the great depression, when panicked governments erected trade barriers, devalued currencies, and thereby deepened and prolonged the suffering.
      • In doing so, they paved the way for Stalin’s collectivisation and Hitler and the Nazi Party.
      Source: Newsweek
    • 20. The Current Situation
      • Most nations have avoided the beggar-thy-neighbour protectionist policies of the 1930s.
      • We are not out of the woods yet – far from it!
    • 21.  
    • 22. The Current Situation
      • There has been some serious income-distribution problems around the world.
      • Income has become more heavily distributed toward the most affluent.
      • In India and China, although great numbers of people have risen out of poverty, substantial portions of their populations remain very poor, while a very small group has developed immense wealth.
      Source: Newsweek
    • 23. The Current Situation
      • Other issues the market based model has not successfully addressed include serious, ongoing global trade and financial imbalances, climate change and poverty.
      • Ireland must also address the immediate need to strengthen the economy, create jobs and protect people affected by the crisis.
      • This is Ireland’s position in a global context.
    • 24.  
    • 25. Ireland
      • Public investments and other policy measures should aim to deal with areas that are absolutely critical to growth and widespread income participation that markets will not adequately address, such as:
    • 26.  
    • 27. The Future ???
      • Education
      • Health-Care
      • Hospitals
      • Renewable Energy
      • Nuclear Energy ?
      • Infrastructure Projects
      • Fair Labour Markets
      • Basic Research
      • Equipping the Poor to enter the economic mainstream
      • And much else.
    • 28.  
    • 29. What does the future hold in store for Ireland ? What steps can Ireland take to make the future better for us all ?
    • 30. What direction should Ireland steer a course for ?
    • 31.