Title: IRELAND The Impact of EU Membership and Structural Funds on a Peripheral Developing Economy Thomas B
1IRELAND The Impact of EU Membership and
Structural Funds on a Peripheral Developing
EconomyThomas ByrneDirectorSouth-East
Regional Authority(IRL)
25th May 2004
2Overview of Presentation
- Ireland Membership of EU and impact of
Structural Funds - South-East Region Profile and Development
- National Development Plan 2000-2006
- Addressing Issue of Balanced Regional Development
3Ireland the EU
- 1958 EEC Original 6
- (F, D, I, B, NL, L)
- 1973 1st Enlargement 3
- (UK, DK, IRL)
- 1981 2nd Enlargement 1 (GR)
- 1986 - 3rd Enlargement 2 (ES, P)
-
- 1995 4th Enlargement 3 (A, S, SF)
-
- 2004 5th Enlargement 10
- 2007 6th Enlargement 3
- (BUL, ROM, TUR)
- 2010 7th Enlargement ?
- ( . IS ?)
4Ireland the EU
- 1973 - GDP per capita lt50 EEC average
- - Highly dependent on Agriculture
- - Under-developed Industrial Sector
- - High dependence on UK market
- - Insular, Inward-looking
- - UK influence
5Ireland the EU
- 1973 - Ireland joined with enthusiasm
- - Benefits of CAP ESF
- - ERDF established in 1975
- 1970 1978 - Agricultural prices
increased 4.5 times - - Aggregate farm income increased by 72
- 1973 1983 5Bn. Received from EU
- 900m. Contributed to EU
- 1988 GDP per capita 64 of EU Average
6Ireland the EU
- 1989 1993 4.5 Bn. Ecu received from
Structural Funds - Priority Areas - Agr., Forestry, Fishing,
Tourism Rural Dev. - - Industry Services
- - Human Resources
- - Peripherality Measures
- 5 GDP growth per annum
- (EU average was 1.7)
- CSF encouraged a return to investment in public
infrastructure
7Ireland the EU
- 1994 1999 - Background of Single Market,
EMU and European integration - - Big increase in EU Budget for
Structural Cohesion Funds - - 5.6 Bn. Ecu from Str .Funds
- - 1.3 Bn. Ecu from Cohesion Fund
- - Total investment 12 Bn. Ecu
- Priorities - Productive Sector
- - Economic Infrastructure
- - Human Resources
- - Local Urban Rural Dev.
8Ireland - GDP per capita as of EU Average
9Ireland - Unemployment Rate ( of labour force)
18
16
14
12
10
8
6
4
2
0
1988
1994
1997
2003
10Registration of New Private Cars, 1993-2002
(Source DOELG)
11Irelands Socio-economic Transformation in the
1990s
- Between 1991 and 1999
- Population grew by 6.2
- GNP increased by 66.0
- Trade Surplus expanded by 660.2
- Exports increased by 210.5
- Number at work went up by 39.8
- Unemployment fell by 51.9
- Generation of non-agricultural waste up by 51.7
- Reversal in migration trend from outward in
1991 to inward in 1999
12Impact of EU Funds
- Irish economy has performed very strongly
- Impact of EU funds modest but important
- Macro-economic model results-
- Short-term effect (1995 to 1999) GDP 3.5
- Long-term effects (2005) GDP 2
- Other factors explain economic boom
- Other benefits from Structural Funds
- Programming approach, better economic planning,
evaluation culture
13NDP/CSF, 2000 to 2006
- Ireland no longer qualifies as Objective 1
- Country split into 2 Regions (NUTS 2)
- BMW Region (retains objective 1)
- SE Region (transitional support)
- NDP context
- Old problems largely resolved
- New challenges face economy
- Congestion
- Labour and skill shortages
- Unbalanced regional development
- Social inclusion
14NDP/CSF Programme Structure
- Total public investment 2000-2006
- NDP - EUR 47.3 billion
- CSF EUR 5.5 billion
- Programme Structure
- Economic and Social Infrastructure (22.3)
- Employment and Human Resources (12.6)
- Productive Sector (5.7)
- BMW region (2.7)
- SE region (3.8)
- Peace (.127)
15Ireland the EU
- Positive - Funding from CAP, Structural
Funds and Cohesion Fund - - New markets, new independence,
broader outlook - - Legislative impact
- - Strategic planning, monitoring,
evaluation of programmes - - Opportunity to influence Europe
- Negative - National v. Regional
- Inter-regional Disparities
- Congestion Bottlenecks
- Loss of Sovereignty
influence of Brussels
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18SOUTH-EAST Region of Ireland
- Functional area covers 5 Counties Carlow,
Kilkenny, South Tipperary, Waterford City
County, Wexford - 9,406 sq. kms. 13.5 of State total
- Four major rivers, fertile arable land, scenic
natural environment predominantly rural (rural
pop. 59) - Balanced urban structure, good rural settlement
pattern - Urban Centres Waterford (50,000) Kilkenny
(21,000) Wexford (18,000) Carlow (18,000)
Clonmel (17,000)
19SOUTH-EAST cont.
- Population 423, 616 10.81 of State
- Increase of 32,099 from 1996-2002 (8.2)
- 40 of current population under 25
- Projected population in 2020 500,000
- Population density 45 persons per sq. km.
(State57) - - Urban population 41.4
- - Rural population 58.6
- Dependency ratio 57
20SOCIO-ECONOMIC INDICATORS
- Unemployment Rate (10,200) - 5.3 (State
4.5) - - 43.5 long term unemployed
(state33) - - Disparities and blackspots within the
region - Labour force 192,200 LF participation rate
58.4 -
21South-East Region - Unemployment Rate 1997-2002
22SOCIO-ECONOMIC INDICATORS cont.
- Employment as Share of Total
- Disposable household income per capita 87.7
(State100) - GVA per capita 86.1 (State100)
- GVA per capita 101.6 (EU 15100)
23INDUSTRY
- Main industries Tourism, agriculture,
engineering, pharmaceuticals, healthcare,
manufacturing, services - 12,400 companies in the region, 82 are
micro-enterprises / SMEs - Company Size
- 1-10 employees _at_ 82.4
- 11-49 employees _at_ 15.5
- 50-249 employees _at_ 2.7
- 250 _at_ 0.4
- 100
24National Development Plan 2000-2006
- Four key national objectives
- Continuing sustainable national economic and
employment growth - Consolidating and improving international
competitiveness - Fostering balanced regional development
- Promoting social exclusion
25Operational Programmes
- Econ. Social Infrastructure 26.02 bn
- Emp. Human Resources 13.67 bn
- Productive Sector 07.32 bn
- S E Regional 05.38 bn
- BMW Regional 04.10 bn
- PEACE 0.127 bn
26INVESTMENT UNDER ESI OP
27Investment Under EHROP
28Investment Under PS OP
29Investment Under Regional OPs
30Balanced Regional Development
- One of the key national objectives of NDP
- Absence of clear and focused regional policy in
Ireland has resulted in significant disparities
arising between regions - Also, disparities within regions
- Performance of Regions
31The Dublin Region
- Uncontrolled inexorable growth of the Greater
Dublin and East Region - In 2002 population over 1.1 million
- Dominant influence of Dublin within the state to
the disadvantage of other regions - Disproportionate share of population
- Regional Income per person of 129.6 of the State
( 57.1 higher than Midland region)
32The Dublin Region
- Household disposable income at 116.7 of the
national average - Major share of industrial employment
- Agglomeration of high-tech industries
- Large concentration of 3rd level education
institutes - Centre of all arms of Government
-
333rd LEVEL EDUCATION
- Three 3rd level education institutes in the
region (formerly known as Regional Technical
Colleges RTCs) - - Waterford Institute of Technology (WIT)
- - Institute of Technology, Carlow (IT, Carlow)
- - Tipperary Institute (TI)
- Total 8,350
- fulltime enrolments in the region
- - WIT 5,542
- - IT, Carlow 2,539
- - TI 269
- There are 15,421 students from the S-E in
fulltime third level education
34National Spatial Strategy
- Development Framework over the next 20 years
- NDP objectives for regional policy are
- Reduce disparities between and within the BMW and
S E Regions - Balanced Regional Development - Develop the potential of both regions to
contribute to the greatest possible extent to the
continuing prosperity of the country - Assist regions to realise their potential
- Critical mass, build on regional strengths
- Partnership and cooperation
35NSS-Role of SERA
- Regional and local authorities will be required
to implement the NSS.through regional planning
guidelines and local development plans and
strategies. - (NSS, p.120)
- Regional Authorities will immediately commence
the preparation of regional planning guidelines.
To give effect to the NSS at regional level. - (NSS, p. 120)
36NSS-Role of SERARegional Planning Guidelines
- RPG long-term planning framework for
development of the region - Planning Authorities obliged to have regard to
RPG in making development plans - RPG Regional and consensual approach to
strategic development of the region -
- RPG take into account
- Future development of region in accordance with
principles of proper planning SD - Population/settlement trends
- Economic/employment trends industrial/commercial
development - The process involved Consultation, Participation,
Partnership and Co-operation
37Useful websites
- www.sera.ie
- www.seiss.ie
- www.wit.ie
- www.fas.ie
- www.enterprise-ireland.ie
- www.cso.ie
- www.it-carlow.ie
- www.tippinst.ie
- www.hea.ie
- www.ndp.ie
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39THANKS FOR YOUR ATTENTION!
- Thomas Byrne,
- Director,
- South-East Regional Authority,
- 1 Gladstone Street,
- Clonmel, Co. Tipperary,
- Ireland.
- Tel 00353 52 26200
- Fax 00353 52 26512
- Email dir_at_sera.ie
- http//www.sera.ie