Story of Ireland &Story of Ireland &Lessons We Can Learn?Lessons We Can Learn?

Wesley ShuWesley Shu

National Central UniversityNational Central University

IrelandIreland

Demography & HistoryDemography & History

Population: 4.2 millionsPopulation: 4.2 millions 84,412 84,412 sq. km. (the island)sq. km. (the island)   End of 17th century: British occupationEnd of 17th century: British occupation CatholicCatholic Population declined since early 19 century Population declined since early 19 century

until late 20thuntil late 20th 1949: Republic of Ireland1949: Republic of Ireland Enya, U2, River DanceEnya, U2, River Dance

Recent ChangesRecent Changes

1987 GDP/Capita 69% of EU; 1987 GDP/Capita 69% of EU; 2003, 136%2003, 136%, , better than UKbetter than UK

UnemploymentUnemployment: : 17% in 198717% in 1987, 4% in 2003, 4% in 2003 government debtgovernment debt: : 112% of GDP to 33%112% of GDP to 33% (OECD) Information Technology Outlook 2000, (OECD) Information Technology Outlook 2000, 

Ireland is the largest exporter of software gooIreland is the largest exporter of software goods in the world ds in the world 

Stagnated in 60s – 80sStagnated in 60s – 80s

At independence in 1922, Ireland was At independence in 1922, Ireland was as rich as most European countries, as rich as most European countries, and only a bit poorer than Britain. and only a bit poorer than Britain. But by 1960 it had fallen far behind, But by 1960 it had fallen far behind, and continued to lag the rest of and continued to lag the rest of Europe until the late 1980s. Europe until the late 1980s.

Causes of StagnationCauses of Stagnation

Brain Drain – emigrationBrain Drain – emigration Political tensionPolitical tension the main Irish IT companies were a small the main Irish IT companies were a small 

number of component suppliers and a snumber of component suppliers and a small indigenous software sector developmall indigenous software sector developing applications mainly for Irish and Britiing applications mainly for Irish and British marketssh markets

Causes of StagnationCauses of Stagnation

Economic Nationalism by de Valera Economic Nationalism by de Valera elected PM 1932: high tariff, twice as elected PM 1932: high tariff, twice as US, 50% higher than UKUS, 50% higher than UK

Who is de ValeraWho is de Valera

1916 Easter rising, the only survival 1916 Easter rising, the only survival (de Valera is American by nationality)(de Valera is American by nationality)

1917 Sinn Fein1917 Sinn Fein Anti-treaty (1921/12/6 Anglo-Irish Anti-treaty (1921/12/6 Anglo-Irish

TreatyTreaty President 1959 – 1973President 1959 – 1973 Died 1975, age 92Died 1975, age 92

Government Still Did Things to Government Still Did Things to Boost the EconomyBoost the Economy

IIndustrialization-by-invitation since the late 1ndustrialization-by-invitation since the late 1950s – welcome FDI950s – welcome FDI

DDeveloping indigenous resources and organizeveloping indigenous resources and organizations ations 

15-year full tax exemption on export sales for c15-year full tax exemption on export sales for companies that located in Ireland between 196ompanies that located in Ireland between 1960 and 19810 and 1981

National Institutes of Higher Education National Institutes of Higher Education & & RegiRegional Technical College onal Technical College SystemSystem

Government Still Did Things to Government Still Did Things to Boost the EconomyBoost the Economy

LLinkages between multinationals and local coinkages between multinationals and local companies, to grow local firms through marketinmpanies, to grow local firms through marketing support and management development, and g support and management development, and to encourage R&D and innovation to encourage R&D and innovation – National – National system of innovationsystem of innovation

However, the policy focus remained to attract However, the policy focus remained to attract foreign investmentforeign investment..

Heavy investment in education and Heavy investment in education and telecommunicationtelecommunication

EndowmentEndowment

low-cost, English-speaking workforcelow-cost, English-speaking workforce CultureCulture mysterymystery  

From Late 80s & Early 90sFrom Late 80s & Early 90s

UUnification of the European marketnification of the European market BBoom in IT industriesoom in IT industries GGrowing executive awareness of the potrowing executive awareness of the pot

ential of international marketsential of international markets Improving public financesImproving public finances SSocial partnership agreements  ocial partnership agreements  

AchievementAchievement

40% of U.S. electronics investment in Europe s40% of U.S. electronics investment in Europe since 1988ince 1988

Dell, Gateway and AST Research Dell, Gateway and AST Research  HP, Keytronic, and  SeagateHP, Keytronic, and  Seagate 3Com and  Motorola3Com and  Motorola Forty percent of Europe's packaged software iForty percent of Europe's packaged software i

s now supplied from Ireland s now supplied from Ireland  ICL,  Ericsson,  IBM, and Digital carry out softwICL,  Ericsson,  IBM, and Digital carry out softw

are development. are development. 

OpportunityOpportunity

If Ireland can marry its technical strengtIf Ireland can marry its technical strengths in software with the design and creatihs in software with the design and creative skills of its writers, artists, animators, ve skills of its writers, artists, animators, and film makers, it may have a bright futand film makers, it may have a bright future in multimedia.ure in multimedia.  

commercial opportunities provided by ocommercial opportunities provided by outsourcing of manufacturing and logisticutsourcing of manufacturing and logistics as a springboard toward a more indeps as a springboard toward a more independent and technically sophisticated buendent and technically sophisticated businesssiness

Reasons for SuccessReasons for Success

More people working, especially womenMore people working, especially women Less aging population due to emigration in Less aging population due to emigration in

50s50s Low personal taxesLow personal taxes EducationEducation Foreign Direct Investment: Foreign Direct Investment: low costs and zelow costs and ze

ro corporate-tax rates ro corporate-tax rates – drew high-margin – drew high-margin companies, e.g., pharmaceuticalcompanies, e.g., pharmaceutical

Reasons for SuccessReasons for Success

European single market: low cost European single market: low cost exporting & more open accessexporting & more open access

European Union subsidieEuropean Union subsidiess Public awareness of the dismal Public awareness of the dismal

economic conditioneconomic condition IDAIDA to lure target companies to lure target companies

Reasons for SuccessReasons for Success Cultural endowmentCultural endowment Transform geographic disadvantage into Transform geographic disadvantage into

advantage – e.g., Ireland between two advantage – e.g., Ireland between two continents, Sweden’s Ice Hotelcontinents, Sweden’s Ice Hotel

Artistic work becomes international Artistic work becomes international recognitionrecognition

International factors into artistic work – cf. International factors into artistic work – cf. The Wind That Shakes the Barley The Wind That Shakes the Barley vs. Mr. YANG vs. Mr. YANG Shunqing’s moviesShunqing’s movies• Human’s general feelingHuman’s general feeling• International cooperationInternational cooperation

Experience EconomyExperience Economy

Not only marketing campaign, but Not only marketing campaign, but the product itself!the product itself!

Content reignContent reign