Story of Ireland & Lessons We Can Learn? Wesley Shu National Central University

Ireland

Demography & History Population: 4.2 millions 84,412 sq. km. (the island) End of 17th century: British occupation Catholic Population declined since early 19 century until late 20th 1949: Republic of Ireland Enya, U2, River Dance

Population: 4.2 millions

84,412 sq. km. (the island)

End of 17th century: British occupation

Catholic

Population declined since early 19 century until late 20th

1949: Republic of Ireland

Enya, U2, River Dance

Recent Changes 1987 GDP/Capita 69% of EU; 2003, 136% , better than UK Unemployment : 17% in 1987 , 4% in 2003 government debt : 112% of GDP to 33% (OECD) Information Technology Outlook 2000, Ireland is the largest exporter of software goods in the world

1987 GDP/Capita 69% of EU; 2003, 136% , better than UK

Unemployment : 17% in 1987 , 4% in 2003

government debt : 112% of GDP to 33%

(OECD) Information Technology Outlook 2000, Ireland is the largest exporter of software goods in the world

Stagnated in 60s – 80s At independence in 1922, Ireland was as rich as most European countries, and only a bit poorer than Britain. But by 1960 it had fallen far behind, and continued to lag the rest of Europe until the late 1980s.

At independence in 1922, Ireland was as rich as most European countries, and only a bit poorer than Britain. But by 1960 it had fallen far behind, and continued to lag the rest of Europe until the late 1980s.

Causes of Stagnation Brain Drain – emigration Political tension the main Irish IT companies were a small number of component suppliers and a small indigenous software sector developing applications mainly for Irish and British markets

Brain Drain – emigration

Political tension

the main Irish IT companies were a small number of component suppliers and a small indigenous software sector developing applications mainly for Irish and British markets

Causes of Stagnation Economic Nationalism by de Valera elected PM 1932: high tariff, twice as US, 50% higher than UK

Economic Nationalism by de Valera elected PM 1932: high tariff, twice as US, 50% higher than UK

Who is de Valera 1916 Easter rising, the only survival (de Valera is American by nationality) 1917 Sinn Fein Anti-treaty (1921/12/6 Anglo-Irish Treaty President 1959 – 1973 Died 1975, age 92

1916 Easter rising, the only survival (de Valera is American by nationality)

1917 Sinn Fein

Anti-treaty (1921/12/6 Anglo-Irish Treaty

President 1959 – 1973

Died 1975, age 92

Government Still Did Things to Boost the Economy I ndustrialization-by-invitation since the late 1950s – welcome FDI D eveloping indigenous resources and organizations 15-year full tax exemption on export sales for companies that located in Ireland between 1960 and 1981 National Institutes of Higher Education & Regional Technical College System

I ndustrialization-by-invitation since the late 1950s – welcome FDI

D eveloping indigenous resources and organizations

15-year full tax exemption on export sales for companies that located in Ireland between 1960 and 1981

National Institutes of Higher Education & Regional Technical College System

Government Still Did Things to Boost the Economy L inkages between multinationals and local companies, to grow local firms through marketing support and management development, and to encourage R&D and innovation – National system of innovation However, the policy focus remained to attract foreign investment . Heavy investment in education and telecommunication

L inkages between multinationals and local companies, to grow local firms through marketing support and management development, and to encourage R&D and innovation – National system of innovation

However, the policy focus remained to attract foreign investment .

Heavy investment in education and telecommunication

Endowment low-cost, English-speaking workforce Culture mystery

low-cost, English-speaking workforce

Culture

mystery

From Late 80s & Early 90s U nification of the European market B oom in IT industries G rowing executive awareness of the potential of international markets Improving public finances S ocial partnership agreements

U nification of the European market

B oom in IT industries

G rowing executive awareness of the potential of international markets

Improving public finances

S ocial partnership agreements

Achievement 40% of U.S. electronics investment in Europe since 1988 Dell, Gateway and AST Research HP, Keytronic, and Seagate 3Com and Motorola Forty percent of Europe's packaged software is now supplied from Ireland ICL, Ericsson, IBM, and Digital carry out software development.

40% of U.S. electronics investment in Europe since 1988

Dell, Gateway and AST Research

HP, Keytronic, and Seagate

3Com and Motorola

Forty percent of Europe's packaged software is now supplied from Ireland

ICL, Ericsson, IBM, and Digital carry out software development.

Opportunity If Ireland can marry its technical strengths in software with the design and creative skills of its writers, artists, animators, and film makers, it may have a bright future in multimedia. commercial opportunities provided by outsourcing of manufacturing and logistics as a springboard toward a more independent and technically sophisticated business

If Ireland can marry its technical strengths in software with the design and creative skills of its writers, artists, animators, and film makers, it may have a bright future in multimedia.

commercial opportunities provided by outsourcing of manufacturing and logistics as a springboard toward a more independent and technically sophisticated business

Reasons for Success More people working, especially women Less aging population due to emigration in 50s Low personal taxes Education Foreign Direct Investment: low costs and zero corporate-tax rates – drew high-margin companies, e.g., pharmaceutical

More people working, especially women

Less aging population due to emigration in 50s

Low personal taxes

Education

Foreign Direct Investment: low costs and zero corporate-tax rates – drew high-margin companies, e.g., pharmaceutical

Reasons for Success European single market: low cost exporting & more open access European Union subsidie s Public awareness of the dismal economic condition IDA to lure target companies

European single market: low cost exporting & more open access

European Union subsidie s

Public awareness of the dismal economic condition

IDA to lure target companies

Reasons for Success Cultural endowment Transform geographic disadvantage into advantage – e.g., Ireland between two continents, Sweden’s Ice Hotel Artistic work becomes international recognition International factors into artistic work – cf. The Wind That Shakes the Barley vs. Mr. YANG Shunqing’s movies Human’s general feeling International cooperation

Cultural endowment

Transform geographic disadvantage into advantage – e.g., Ireland between two continents, Sweden’s Ice Hotel

Artistic work becomes international recognition

International factors into artistic work – cf. The Wind That Shakes the Barley vs. Mr. YANG Shunqing’s movies

Human’s general feeling

International cooperation

Experience Economy Not only marketing campaign, but the product itself! Content reign

Not only marketing campaign, but the product itself!

Content reign