IRELAND The Impact of EU Membership and Structural Funds on a Peripheral Developing Economy Thomas B

1
IRELAND The Impact of EU Membership and
Structural Funds on a Peripheral Developing
EconomyThomas ByrneDirectorSouth-East
Regional Authority(IRL)
25th May 2004
2
Overview 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

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Ireland 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 ?)

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Ireland 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

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Ireland 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

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Ireland 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

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Ireland 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.

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Ireland - GDP per capita as of EU Average
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Ireland - Unemployment Rate ( of labour force)
18
16
14
12
10
8
6
4
2
0
1988
1994
1997
2003
10
Registration of New Private Cars, 1993-2002
(Source DOELG)
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Irelands 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

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Impact 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

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NDP/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

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NDP/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)

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Ireland 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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SOUTH-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)

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SOUTH-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

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SOCIO-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

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South-East Region - Unemployment Rate 1997-2002
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SOCIO-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)

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INDUSTRY

• 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

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National 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

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Operational 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

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INVESTMENT UNDER ESI OP
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Investment Under EHROP
28
Investment Under PS OP
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Investment Under Regional OPs
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Balanced 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

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The 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)

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The 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

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3rd 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

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National 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

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NSS-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)

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NSS-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

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Useful 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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THANKS FOR YOUR ATTENTION!

• Thomas Byrne,
• Director,
• South-East Regional Authority,
• 1 Gladstone Street,
• Clonmel, Co. Tipperary,
• Ireland.
• Tel [phone]
• Fax [phone]
• Email dir_at_sera.ie
• http//www.sera.ie