Norman Glass

Readers of this blog might recall my support for the establishment of something modelled on the UK Government Economic Service.   I was sad to hear of the passing last week of a great Irish economist though perhaps one of the least known – Norman Glass – who was in many ways one of the architects of the GES.

The Guardian obituary is at http://www.guardian.co.uk/politics/2009/jun/29/obituary-norman-glass

Norman was a pioneer in economics within policy circles.   He was the first economist in the UK Department of Health for example in the early 1970s.   But it was his time at the Treasury where he really made his impact, becoming in effect the Chief Microeconomist and the driver of the microeconomic revival at the Treasury during the early days of Blair and Brown particularly in the aftermath of the Bank of England independence move.  The development of the working families tax credit, the innovations in linking labour supply policy and welfare strategies, major initiatives in education and health – Norman was central to all of these moves and to the early success of the ‘New Labour’ era.   Norman also developed an interest in the early skills formation agenda, designing SureStart (and later became a vocal critic of what the UK Government did with that programme in letting it become bloated and without direction).   On retirement from the Treasury he went on to lead NatCen, perhaps the largest and best social research company in Europe.

Norman was a complete gentleman, quietly interested in what went on in Irish economics, hugely supportive of students and researchers who made contact with him.   He is also perhaps amongst the most influential Irishmen of the late 20th century, albeit also one of the most modest and ‘backroom’, completely anonymous in his homeland.

I thought it might be interesting to readers to learn about Norman, but in passing I can’t help but think that as we face up to the consequences of terrible decisionmaking in economic policy over the past 15 years or so, and how little evidence there is of clever thinking in economics within the Irish civil service, one of the most important figures in policy decision making and in creating the infrastructure for economics in Government in the UK system, was an Irish economist.   Knowing Norman, I suspect he would have found that funny too!

Some More Contributions to Innovation Debate

Over the past couple of months, I’ve been surprised at how little real debate there has been about the government’s Smart Economy strategy.  Monday’s Irish Times Innovation supplement had a useful article discussing the economist-free Innovation Task Force that I mentioned last week.

As one might expect, the article contains some enthusiastic comments from some members of the Task Force—industrial policy experts will recognise the idea of the strategy succeeding by “picking winners.” In addition, however, the article also quotes some less enthusiastic economists—me and UCC’s Declan Jordan.  The Times also carried another article from Declan, which together with his earlier article from April, represent important contributions to the debate on these crucial issues.

Employment Schemes in Ireland During the 1980s: An Evaluation

Just a short addition to the discussion on job subsidies addressed by Karl Whelan on this blog.  Ireland had an extensive program of Employment Schemes during the 1980s. The following schemes accounted for 95 per cent of all participants on these kinds of interventions; Work Experience Programme, Employment Incentive Scheme, Enterprise Allowance Scheme, Teamwork and Social Employment Scheme.

Hartmut Lehmann and I outlined the details of these programmes and evaluated them in terms of their ability to get the unemployed back to work in 1990. 

Hartmut Lehmann and Patrick Paul Walsh, CEP and London School of Economics, “Employment Schemes in Ireland: An Evaluation” The Economic and Social Review“, Vol.22, No.1, October 1990, pp43-56

http://www.scribd.com/doc/17129901/Employment-Schemes-PP-Walsh

 

Karl is right to be nervous about their reintroduction. It is hard to prevent unintended displacement and substitution effects in these interventions,  employees taking on subsidised workers and letting go unsubsidised workers or taking on subsidised workers instead of intended unsubsidised workers.  

We have a history in dealing with mass unemployment and we should not ingore lessons from the research done from that time. 

Other notable papers at the time where

Breen, R. (1991), ‘Education, Employment, and Training in the Youth Labour Market’, General Research Series Number 152. Dublin: ESRI.

Breen, R. and B. Halpin (1989), ‘Subsidising Jobs: An Evaluation of the Employment Incentive Scheme’, General Research Series Number 144. Dublin: ESRI.

The Krugman Blues

As previously recommended in the comments, here is Loudon Wainwright III singing “The Krugman Blues”:

Ahearne (Indirectly) on the Irish Economy

In today’s Irish Times, Harry McGee reports the substance of Alan Ahearne’s recent presentation on the state of the Irish economy here.