Rural areas cannot be abandoned in recovery
In the aggregate, most economic indicators are showing marked signs of improvement, and we are also seeing a number of economic forecasters fighting to be more positive about growth prospects than the other. After six incredibly difficult years, this does represent good news, but unfortunately it is clear that the various aggregate economic statistics are hiding some ominous trends, particularly the death of rural Ireland.
As I travel around the country, speaking to different audiences, I tend to get either bland or incredulous looks from people as I present graphs showing employment growth, consumer spending growth, and other positive indicators. The reason for this is that the aggregate statistics are very heavily influenced by the economy of the greater Dublin area, which accounts for over 40% of the national economy in terms of economy activity.
It is very clear to anybody who lives in or visits Dublin that the local economy is doing well, with restaurants, shops, and pubs vibrant. However, a few miles out of Dublin, the picture changes quite dramatically.
Most rural towns and villages cannot relate to the concept of economic recovery — in fact, many are convinced that things are still getting worse.
Two reports in recent weeks highlight clearly the challenges facing rural Ireland. Research from development agency Teagasc paints a stark picture of how rural towns and villages are faring at the moment. For example, one third of working-age households in small and medium-sized towns have nobody employed, and the poverty rate is twice that of cities.
A separate study from the Commission for the Economic Development of Rural areas shows just how badly areas outside of the five main cities have fared since the collapse of the economy in 2008.
There is nothing in either of these two research reports which should come as a surprise to anybody with any knowledge or understanding of rural Ireland. The collapse of the construction economy, which had become the mainstay of many rural areas during the boom, has had a disastrous impact.
Hundreds of shops have closed, many restaurants and pubs are struggling badly, and a serious youth unemployment problem in particular is very evident.
On top of all of this, rural post offices and Garda stations are being shut in the name of cost-saving and economic efficiency, and rural pubs have been decimated by the Stasi-like approach to drink-driving adopted by policymakers. The economic and social consequences of these trends are plain for all to see and are not positive.
Should we just give up and accept the fact that economic activity and people are gravitating towards the urban centres, and that rural Ireland will just become a playground for wealthier urbanites? I do not think so. For a small country such as Ireland, it is totally unacceptable that rural areas are allowed become devoid of young people and economic activity. Policymakers need to become more focused on pro-active approaches to generating rural social and economic activity.
We need to identify what rural areas have to offer and make sure that the facilities are in place to exploit the opportunities. Tourism and agri-food are the two sectors that immediately come to mind, but areas such as alternative energy and small enterprises offer enormous potential. Rural areas need to be made attractive places in which to live and work again. Social infrastructure is essential; a high-quality IT offering is essential; proper policing is essential; roads need to be brought back to an acceptable standard; social services such as healthcare need to be brought up to scratch.
In many rural areas, there is no longer a Garda presence; pubs and small shops have disappeared; the road network is being sacrificed on the altar of fiscal austerity; access to healthcare is pretty dreadful; and the IT offering is beyond pathetic.
It is a depressing list, but it need not be so. It is time policymakers seriously focused on rural regeneration, because Ireland is too small a country to become so urban-centric.
