In our last blog, we talked about growing our economic pie, so that everyone get more in terms of absolute money instead of arguing who get more in terms of percentage. You can read it here.

 

Today in the star news paper we have good article on ‘The Irish Transformation’, you can read it here or below.

 

Anyway we have summarize some of the key points below.

 

·     Twenty years ago, the economy was on the verge of despair. Unemployment was almost 18%, emigration was soaring and the nation's coffers were bare.

 

·    These days, Ireland is placed high in most economic and social rankings. It is among the world's Top 10 in gross domestic product (GDP) per capita, a basic measure of wealth.

 

·    That means the Irish are no longer leaving the country in droves in search of greener pastures.

o   Malaysian best exports are still leaving in search of greener pastures.

 

·     In fact, Ireland sees a steady stream of immigrants, many of them are from Eastern European nations such as Poland and the Czech Republic

o    Now that is what we at luk4all hope to see one day in Malaysia, brain gain, not brain export.

 

·     Ireland has decided that it wants to compete by becoming a knowledge economy. That involves emphasizing education, science and technology, and research and development.

o    And we are still arguing that our university are not ranked properly, losing professors, arguing if our entry to university is truly through merit, busy suspending its student, VC interpreting shouting as singing.

 

·     “We are among the most open economies in the world, and probably has been over the last 20 years.  

 

·     “There are absolutely no restrictions on anybody doing business in Ireland. We try to make the environment as good as possible for both Irish and foreign investors. 

o    Remember the key word is ‘MOST OPEN ECONOMIES IN THE WORLD’ and ‘ABSOLUTELY NO RESTRICTIONS ON ANYBODY DOING BUSINESS’

 

And again we would like to reiterate, remember the key word is ‘MOST OPEN ECONOMIES IN THE WORLD’ and ‘ABSOLUTELY NO RESTRICTIONS ON ANYBODY DOING BUSINESS’.

 

Hopefully the boys in the fourth floor and our minister who reads the star do take note and put it into their head when they draft our next economy policy.

 

Maybe AP minister, Mydin or Nazri can say, that is the Irish way of doing things, in Malaysia we do it differently. I think we can do ANYTHING ANYWAY ANYHOW we want. But remember it is other people’s money that we are trying to attract. We need to ask ourselves, is our way the most attractive way? Other countries are most happy to change their way, to make their country as attractive as possible to investors, and I am very sure they will be more than happy with one less competitor in attracting investors.

 

From us at Luk4all, I do not think we can do much in changing the economic policy (don’t worry I will put my one vote to good use in the next election), but I surely hope our leaders will make the tough and the best decision for the country. I surely hope we will not end up like below.

 

‘Indeed, the vibrant and business-friendly Ireland now is unrecognizable from the Ireland of the 1980s. Twenty years ago, the economy was on the verge of despair. Unemployment was almost 18%, emigration was soaring and the nation's coffers were bare.’

 

 

Courtesy from The Star 

 

The Irish Transformation

 

By ERROL OH

errol@thestar.com.my 

 

IT does not take long for a first-time visitor to Ireland to figure out that the country has advanced rapidly in the last several years, so much so that some economic sectors are still playing catch-up. A brochure distributed at Dublin Airport almost apologetically informs travellers that Ireland's chief airport is in the midst of transformation. 

 

Last year, over 21 million passengers went through it, making it one of Europe's busiest airports. A capacity upgrade and a makeover are overdue. Says the brochure, “As anyone passing through in recent times is aware, Dublin Airport was built for a different Ireland.” 

 

Indeed, the vibrant and business-friendly Ireland now is unrecognisable from the Ireland of the 1980s. Twenty years ago, the economy was on the verge of despair. Unemployment was almost 18%, emigration was soaring and the nation's coffers were bare. 

These days, Ireland is placed high in most economic and social rankings. It is among the world's Top 10 in gross domestic product (GDP) per capita, a basic measure of wealth.  

 

According to the Organisation for Economic Co-operation and Development (OECD), the Irish living standards are better than those of most other countries. 

Unemployment is at historically low levels. It was 4.4% last year and the final figure for 2007 is expected to be the same.  

 

In 16 years, total employment has doubled to two million. That means the Irish are no longer leaving the country in droves in search of greener pastures. In fact, Ireland sees a steady stream of immigrants, many of them are from Eastern European nations such as Poland and the Czech Republic. 

 

Most significantly, since the early 1990s, Ireland has been enjoying an extended run of strong GDP growth that is way above the European Union (EU) average.  

Last year, the economy expanded by 5.7%, while estimates for 2007 range between 4.7% and 5.5%. 

 

In his speech at the January 2007 launch of Ireland's latest seven-year National Development Plan (NDP), Prime Minister Bertie Ahern said, “It is perhaps too easily overlooked that, in the short space of only two decades, we have escaped an invidious legacy of involuntary emigration, joblessness, inflation and high taxation – while effectively doubling to well over two million the number of people now engaged in productive employment.” 

 

The dotcom lesson 

It may be hard to imagine that such a remarkable transformation can be under-appreciated, but Ahern has a point – when things are going well, people tend to forget that enormity and importance of the achievements. The story of Ireland's reversal of fortune is in two parts. The first is the tale of the so-called Celtic Tiger economy, which roared mightily until the dotcom bubble burst in 2001. Through a combination of developments, both by design and chance, Ireland benefited from investments by information technology (IT) companies such as Dell, Microsoft and Apple, who were then young companies with little experience in Europe. 

 

Government support, relatively low costs and a well-educated, multilingual workforce were persuasive factors. The Internet boom came and the Irish economy skyrocketed. Those were the heady days and Ireland was happy to boast that it had skipped the Industrial Revolution and had gone straight to the Information Age. 

Then came the slump in the IT sector when it became clear that the dotcom craze was overhyped.  

 

The Irish are sparing in their use of the Celtic Tiger label. Official publications rarely make that reference. “For one thing, it's too glib,” says a Dubliner. More to the point, Ireland needs a solid second act, not a catchy monicker. What do you do after the exhilarating, but ultimately unsustainable, years of double-digit growth come to an end? The stakes are undeniably high. The global competition for foreign investments is intensifying and Ireland can no longer position itself as a low-cost location. 

 

At the NDP launch, Ahern said, “It is no exaggeration to assert that we are at a point in our national history where we have never been able to see more clearly the possibility of our full potential. And we should aim to settle for nothing less.” 

 

Going for more value 

Ireland has decided that it wants to compete by becoming a knowledge economy. That involves emphasising education, science and technology, and research and development. Investment and Development Agency Ireland (IDA Ireland) international media & marketing manager, Brendan Halpin, says that means concentrating on attracting high-value investments that add to the country's innovation. 

 

He adds, “We are among the most open economies in the world, and probably has been over the last 20 years. “There are absolutely no restrictions on anybody doing business in Ireland. We try to make the environment as good as possible for both Irish and foreign investors. “Therefore our only protection against competition is to remain competitive and to compete at the highest level.” 

 

Says Enda McDonnell, an economist with Enterprise Ireland, “Like every small country, there's so much that we can't necessarily influence. “But what we need to do is ensure that our companies are prepared for whatever happens, and that is by being efficient, productive and innovative, and by always seeking to grow and develop.” 

 

Enterprise Ireland is the government agency that helps build up Irish-owned companies, primarily those in manufacturing and internationally traded services.