Economic vision - Pro-active Government role essential

CHARTING a vision of Ireland to 2015 may sound aspirational, but it is more realistic now than at any time because the country boasts an economy of unprecedented strength.

In contrast with darker days when the Whitaker and Culliton reports were born, the incredible economic growth of recent years will serve as high-octane fuel for the new O’Driscoll blueprint.

While there may be nothing earth-shattering in the document as such, its strength lies in the fact that this long-term strategy is geared to accelerate economic growth rather than having to deliver success from a standing start. Far-reaching implications flow from the proposal to generate a spirit of enterprise at the heart of government as distinct from the present policy of concentrating this task in one or two key departments.

Instead, it suggests the broad objectives of enterprise and development should influence the whole spectrum of government.

This applies particularly to the field of education, which is envisaged as playing a major role in Ireland’s future in an era when hi-tech research and development will assume greater importance. Essentially what the country needs today is a knowledge-based economy.

In the past decade Ireland’s wealth has been largely generated from a foreign-owned manufacturing base. But with traditional industries moving to cheaper economies in the Third World, the country has to change direction.

Effectively, the goalposts need to be shifted and the authors emphasise the urgency of enhancing the performance of home-grown industry. The days when the country’s growth was driven by multinationals are numbered. In search of profits, many have already packed their bags and moved to the Far East or other low-cost economies.

In future, indigenous companies will have to sell themselves abroad. To meet this challenge, the review suggests 1,000 graduates will be needed to drive the marketing engines of Irish companies to increase sales of products and services in foreign markets.

Ireland’s burgeoning economy is an ideal foundation for the blueprint of future planning and development mapped out in the new strategy. What is needed is a more flexible and agile form of government, capable of changing economic policies rapidly to match fluctuations of the global economy.

The Government cannot afford to sit on its hands. Its policies need to be revisited twice a year by a compact team involving top civil servants, leading industrialists and educators. A twice-yearly Cabinet meeting should be held to plan for rapidly-changing economic circumstances.

From here on, the Government must be a pro-active player rather than standing back from policies. Levels of investment in the regions need to be ahead of demand and priority must be given to beefing-up infrastructure in so-called hubs and gateway towns.

Hopefully, governments will live up to Tánaiste Mary Harney’s prediction that the implementation of this process means social inclusion and economic growth will be interdependent in a caring and compassionate society.

It may be a cliché to say Ireland must remain dynamic, muscular, lean and competitive, but that is the stark reality if this hard economic vision of the country’s future is to be realised.