Ireland to top most globalised nations

IRELAND is on course to become the most globalised nation on Earth next year and will retain the position until at least 2014, according to Ernst & Young and the Economist Intelligence Unit (EIU).

The Ernst & Young Globalisation and the Changing World of Business report, which has been released to coincide with the World Economic Forum in Davos, shows that Ireland has overtaken Singapore to become the world’s second most globalised nation, second to Hong Kong in the globalised nation hierarchy.

The index has five measurements to assess a country’s global ranking, including its openness to global trade, global capital movements, global exchange of technology and ideas, global labour movements and cultural integration. Each criteria’s weighting was validated by 1,000 global business leaders.

The report, drafted in collaboration with the Economist Intelligence Unit (EIU), found that in addition to improving its overall globalisation ranking, Ireland achieved number one positions in two of the five categories measured.

The report found the increase in Ireland’s score between 2009 and 2010 was mainly the result of greater movement of goods and services as a proportion of GDP.

Total trade was around 197% of Ireland’s GDP in 2010, compared with 166% of GDP for trade in 2009. Exports of chemicals have grown particularly strongly.

CEO of IDA Ireland, Barry O’Leary, said: “This is an excellent recognition of Ireland’s strengths and it is particularly encouraging to see that we scored highest globally in exchange of technology and ideas. Ireland’s value proposition as a leading location for Foreign Direct Investment (FDI) is based on our reputation as a country that embraces open innovation and the survey result further enhances this reputation.”

Speaking about the results, managing partner, Ireland, with Ernst & Young, Mike McKerr, said: “Although domestic economic conditions remain extremelychallenging, we must continue to recognise that Ireland retains core strengths which are key to our recovery. Our nation’s globalisation ranking demonstrates how well positioned Ireland is to maximise opportunities within international economies.”

Mr McKerr said it is also interesting to see the role of tourism helping to further enhance our position.

He cautions that the current political uncertainty must be addressed quickly and effectively to avoid any international concerns regarding Ireland’s reputation as a good country to do business with.

“The fact that Ireland has become a front page story for all the wrong reasons in recent times is cause for concern, particularly in terms of continuing to protect our reputation as an attractive location for foreign direct investment.

“With so much of Ireland’s economic recovery relying on us maintaining a strong global brand, anything which puts that brand at risk must be tackled quickly or our economic recovery will suffer.”