The Irish Economy

Under this rather stark headline, the National Transport Authority (NTA) issued a press statement on 2nd October last, giving a little under a month for responses to be received. The NTA was proposing, for reasons set out in a consultation paper  and technical report to award a further five-year monopoly to Dublin Bus.

A decision is due from the NTA Board this month (see item 8).

On its establishment, the NTA’s first act was to award an initial five-year monopoly to Dublin Bus (as well as to Bus Eireann and Irish Rail).  Five years later, which was five years ago, a second almost-complete monopoly was awarded, except that 10% of services were to be tendered for competitively. Bus users will see that these services are just now beginning to be operated by Go-Ahead in certain parts of Dublin.

Now, the NTA proposes to tender no more. Some competition-sympathising acquaintances and I have made a submission to the Authority for its consideration. Here is the executive summary; the Association referred to is a new group, the Competition Advocacy Association (of which more later):

Economics at NUI Galway is currently recruiting for two fixed-term positions:

• Lecturer (Economics)
• Lecturer (Macroeconomics/Finance)

Details and applications via:

http://www.nuigalway.ie/about-us/jobs/#

• The closing date is 23rd November 2018.

Cork University Business School & Department of Economics

 is pleased to invite you to the

Second Annual Longfield Lecture in Economics

 Professor John Fitzgerald

Adjunct Professor of Economics, UCD and TCD

 The Phoenix and the Ashes – 60 years of Irish economic policy

 Thursday 18 October 2018

6.00pm

Venue: Kane Building, Room G02

 All are welcome

 About the speaker

Professor Fitzgerald is one of Ireland’s foremost economists. He is currently an Adjunct Professor in both TCD and UCD, having previously been a Research Professor in the Economic and Social Research Institute in Dublin. He is a member of the Central Bank of Ireland Commission and he is Chairman of the Irish government’s Climate Change Advisory Council.

 About the lecture

Instead of ushering in a period of economic success, the first 40 years of independence saw a serious underperformance by the Irish economy. Ireland missed the free trade boat after the Second World War and, unlike the rest of Northern Europe from the Urals to Snowdonia, it did not invest in human capital.

Policy began to change in the 1960s. EU membership in 1973, and a steady commitment to developing a modern education system, eventually saw Ireland realise its economic potential.

Bad mistakes in fiscal policy in the late 1970s further delayed Ireland’s convergence to an EU standard of living. However, once the fiscal crisis was dealt with and the EU Single Market came into effect in 1993 Ireland grew very rapidly so that by the mid-2000s Ireland had a standard of living above that of the EU15.

Once again unwise fiscal policy, combined with a massive failure of financial regulation, saw Ireland face a major economic crisis in 2008. However, having got into this mess, policy makers made a very good job of extricating the country from the mire. Nonetheless this process was very painful, leaving a legacy of debt and damage to individual households.

The success of the Irish economy has been built on developing an extremely open economy, a sustained policy of investing in human capital, and a very open labour market. All of this has been underpinned by the multiple advantages conferred by EU membership.