No way back for political and banking elite
In between it has been another incredible year for the Irish economy and Irish society in general. Unfortunately, most of the news flow was of a very negative variety.
This time last year one was tempted to believe that the events witnessed in 2009 would never be super ceded, but they have.
Undoubtedly, the shenanigans in the banking sector take pride of place. Despite repeated assurances from our Minister for Finance and his allies in Government, the cost of the banking bailout just got bigger and bigger and despite heavy investment by the taxpayer and numerous promises by the minister, credit remains as elusive in the broader economy as all-Ireland medals are in Waterford.
As well as being treated to lies and inaccuracies by our governing elite, the banking class has told lies and has continued to behave in the incredibly arrogant manner that was nurtured so skilfully during the credit boom. The general population is now totally fed up with the political and banking elite. We may never again see the day when people bow and scrape to these two groups.
When I was growing up in rural Ireland, the bank manager, the parish priest and the doctor were regarded as the pillars of society. Today, the doctor is still treated with the utmost respect because they perform a very essential service, but priests are now treated with deep suspicion and bankers are treated with contempt and derision. However, priests are still way up the pecking order compared to the bankers, I suspect.
The other big story of the year was the arrival of the IMF along with the EU to our shores. The arrival of the IMF is in my view a good thing because we needed some external force to convince us and force us to do what needs to be done to create a more sustainable economic and financial system. However, its arrival is indicative of the fact that Ireland in 2010 is a political and economic basket case.
We are clearly incapable of managing our own affairs in a prudent manner. This is something we should not be proud of and, in fact, it is something we should be very ashamed of. The political elite that led us into this mess should not be allowed forget this fact and we should punish them in the best manner possible come general election time.
However, there were some positive developments on the economic front that bode reasonably well for the future. The recession is being used to generate a more competitive cost base for Ireland and this is reflecting itself in a strong manufacturing performance and buoyant export growth.
For example, in the first 10 months of the year merchandise exports were 4.5% up on the same period last year. Thankfully, the manufacturing and export growth is not just driven by the foreign-owned components of the economy — indigenous companies, particularly in the agri-food sector, are again making an increasingly important contribution to the economy.
Furthermore, the global economic background is getting gradually better and this will continue to drive our export performance in 2011.
It also strikes me that there is now a growing acceptance that where Ireland has been going in recent years has been totally unsustainable and we will have to reform our public finance model and the manner in which public services are delivered.
As we move into 2011 our resolution should be to wish for and ensure that our failed system is repaired and not just patched up. This crisis must be used as an opportunity to fundamentally reform Ireland in order to create a more sustainable economic and social model. I believe it will. Have a very happy Christmas and a more prosperous 2011.
