IRELANDA - O Tigre Celta - Uma Economia de Sucesso

By Paul Tobin, CBS James's Street, Dublin, IRELAND, 1997

(Portuguese translation of the English original by Fernando Carrapiço - Escola Superior de Educação da Universidade do Algarve, Faro, PORTUGAL )

Contribution to the EDUVINET "Living Conditions of EU Citizen" subject

"The above text was taken from material available on the internet particularly at http://www.irish-trade.ie/, from Ireland from CIA World Factbook, 1994, and form an article by Garret FitzGerald available at itwired@irish-times.com"

LOCATION

ENVIRONMENT

PEOPLE

IRLANDA...UMA ECONOMIA DE SUCESSO

• A Irlanda é uma pequena e dinâmica economia de mercado. A sua grande dependência do mercado internacional transforma-a numa das economias mais abertas da Europa. A política económica da Irlanda caracteriza-se por uma orientação forte no sentido da exportação e o país tem atingido recordes que se podem verificar pela quantidade de excedentes nos últimos anos.
  
  
• As principais exportações situam-se nos sectores da Alimentação, Electrónica e Farmacêutica. Os principais parceiros comerciais da Irlanda são o Reino Unido, Os Estados Unidos e a Alemanha. A grande fatia comercial realiza-se com os outros estados membros da União Europeia.
  
  
• O Central Statistics Office disponibiliza estatísticas detalhadas sobre as trocas comerciais totais da Irlanda com os outros estados. Para mais informações contacte External Trade Help Desk CSO Ardee Road, Dublin 6. ou pela internet no endereço http://www.irish-trade.ie.
  
  
• Nos últimos dez anos a Irlanda desfrutou de um crescimento económico assustador. Nos últimos três anos a economia cresceu a uma taxa média superior a 7%. Para 1997 prevê-se um crescimento superior a 8%.
  
  
• Uma década atrás, as importações Irlandesas eram inferiores a dois terços das Britânicas; no ano passado ultrapassaram-nas.
  
  
• Hoje a Irlanda define-se em relação à Europa – uma associação de nações que se reconhecem como iguais.
  
  
• Nos anos mais recentes as taxas de crescimento económico da Irlanda têm sido impressionantes – mantendo-se entre as mais altas dos países da OCDE. O total de exportações atinge três quartos do produto nacional, nível único na Europa. Este sucesso deve-se em grande parte à contribuição das companhias estrangeiras que consideram a Irlanda como um local altamente competitivo a partir do qual podem fornecer os mercados internacionais.
  
  
• A Irlanda oferece uma economia estável que atingiu um alto nível de crescimento, um baixo nível inflacionário e um baixo nível global de impostos. É por isso que este „Tigre Celta" da Europa ganhou quase um quarto de todo o investimento fabril dos Estados Unidos na Europa, embora atinja apenas 1% da população.
  
  
• Nas últimas duas décadas mais de 1000 de companhias estrangeiras juntaram-se à já forte base de empresas locais que comercializam com sucesso a partir da Irlanda, não apenas para a Europa mas para o mundo inteiro. Tal sucesso baseia-se na política dos governos Irlandeses para o desenvolvimento dos negócios. Esta política tem garantido a imediata disponibilidade de serviços de apoio à escala mundial – desde a banca e comércio financeiro à eficiente logística dos transportes e à sofisticação das telecomunicações.
  
  
• A Agricultura, que foi o sector mais importante, está agora a ser minimizado pela indústria, que conta com 38% do produto nacional bruto (PNB), cerca de 80% de exportações, e emprega 28% da população activa.
  
  
• Embora as exportações continuem a ser o motor do forte crescimento da Irlanda, a economia também tem beneficiado dum aumento do consumo e da recuperação do investimento construção civil e nos negócios.
  
  
• A Irlanda tem reduzido o seu déficit de forma substancial desde 1987, para 40% do PNB em 1994. Durante o mesmo período a inflação caiu significativamente e o crónico déficit da balança comercial transformou-se em „superavites" anuais.
  
  
• Contudo o desemprego continua um sério problema, e a criação de novos empregos é o foco principal da política governamental. Para diminuir o desemprego, Dublin procura agressivamente investidores estrangeiros e criou recentemente uma agência para apoiar pequenas empresas nacionais. O apoio governamental está constrangido pela contínua aplicação de medidas de redução do déficit.
  
  
• O comércio externo Irlandês (An Board Tráchtála). A principal missão da Bórd Tráchtála é apoiar as empresas irlandesas no desenvolvimento sustentável de mercados quer no país quer no estrangeiro. – Dispõe de escritórios em Cork, Galway, Limerick, Sligo, Waterford, e 23 outros no estangeiro. – A Bórd Tráchtála oferce uma vasta variedade de ajudas e incentivos para os fabricantes de mercadorias e para as empresas que facultam serviços comerciais internacionais regulares. A organização também disponibiliza um conjunto de serviços para compradores estrangeiros e importadores e um serviço de informações para o comércio a retalho na Irlanda.
  
  
• THE INDUSTRIAL DEVELOPMENT AUTHORITY(IDA).
  The IDA aggressively markets Ireland around the world. It has offices in
  

  Germany:	Rolandstrasse 44, Düsseldorf, Jägerstrasse 12, Stuttgart
  Netherlands:	World Trade Center, Strawinskylaan 861, Amsterdam
  United Kingdom:	Ireland House, 150 New Bond Street, London
  USA:	Atlanta, Boston, Chicago, Los Angeles, New York, San Jose
  Asia-Pacific:	Australia Sydney, Hong Kong, Japan, Korea,Taiwan

  
  
  
• · As previsões da Comissão Europeia apontam para a continuação do recorde de crescimento em 1997, quase o dobro da média do da união Europeia, tal como o rápido declínio da taxa de débito e consumo público, chaves fundamentais para a qualificação para moeda única. Na previsão Irlandesa haverá 5,6% de taxa de crescimento enquanto que a média europeia se situará pelos 1,5%. O comissário Europeu Yves Thibault de Silgury disse que a Irlanda é um dos melhores alunos da turma. E disse „Estou optimista que a Irlanda estará na moeda única desde o seu início".

O MILAGRE ECONÓMICO

A Irlanda tem que agradecer à visão económica e negocial da sua população e à entrega total dos últimos governos e especialmente ao grande número de adeptos da moeda única. A Irlanda continua fortemente apostada no ideal Europeu.

A probabilidade da Irlanda se juntar ao pelotão da frente na moeda única continua muito elevada. Todavia, a proximidade de relações da Irlanda com a Grã-Bretanha pode colocar problemas ao futuro da Irlanda e à sua ligação à União Económica Monetária. A Irlanda continua a desempenhar muito bem a sua reforma fiscal e económica. Contudo o rácio déficit / PNB continua bastante elevado comparativamente com a união Europeia. Este rácio tem melhorado muito nos últimos dez anos devendo-se a uma política agressiva de impostos concebida para atrair negócios internacionais. Como resultado, o déficit caiu de um nível flutuante de 116% em 1987 para uns previsíveis 73-75% nos finais de 1996.

O orçamento fiscal para 1997 incluiu cortes significativos nos impostos mantendo e melhorando uma política económica que já deu tão bons frutos na Irlanda. Assim mesmo a previsão do déficit do governo é cerca de 1,5% do PNB.

Embora isto se possa considerar um ligeiro aumento em relação ao do ano anterior, que se situou em 1% do PNB, a Irlanda continua a seguir as linhas orientadoras do tratado de adesão à moeda única fazendo desta nação uma verdadeira jóia na Europa. É possível assistir a um crescimento económico pelo menos até meados de 1998, o que deverá permitir atingir o projectado déficit e assim o rácio déficit/PNB poderá baixar além dos 70% até aos finais de 1997.

Continua a haver dúvidas que a Irlanda tenha alguns problemas relativamente à União Europeia. Ironicamente foi o sucesso económico da Irlanda que causou o significativo investimento internacional lançando o país e deixando os parceiros europeus na cauda. A libra Irlandesa subiu, relativamente à Inglesa e agora situa-se a uns 10% acima da mais fraca das moedas do sistema da União Europeia. Em termos de taxa de câmbio a forte moeda irlandesa tem colocado alguns problemas.

Politicamente a Irlanda deve eventualmente decidir se aderirá no primeiro round, em 1999, da união económica e monetária dado que a Grã-Bretanha parece não entrar senão no segundo round. O governo actual da Irlanda continua completamente empenhado na adesão à moeda única. Contudo com eleições gerais a realizar no final do ano de 1997, poderemos chegar à conclusão que a Irlanda dará um segundo avanço na adesão sem a Grã-Bretanha e o efeito repercutir-se-à na sua própria economia. Tudo leva a crer que se a Irlanda aderir em 1999 todos os atractivos e vantagens para os investimentos internacionais neste país chegarão a um repentino e dramático fim. Isto leva-nos a concluir que a economia na Irlanda atingiu o seu auge e o futuro será drasticamente diferente da experiência vivida nos últimos dez anos.

IRELAND INDUSTRIAL SUCCESSES

A winning economy

A rewarding investment

Low tax and generous incentives

Availability of skilled labour

Low costs

World class sub-supply

State-of-the-art telecommunications

Sophisticated transport logistics

Good quality of life

Strong supports on the ground

ELECTRONICS

Ireland is one of the most attractive locations for investment by electronics companies because of its sub-supply base, excellent skills and low operating costs. Since 1980, 40% of all US new inward investment in European electronics has come to Ireland

Over 300 companies are engaged in the development, marketing and manufacture of a wide range of leading edge products, in a diversity of sectors, from wafer design and fabrication, systems, components and peripherals to communications, networks and software.

They play a major role in Ireland's economy. Almost a third of the PCs sold in Europe come from companies based in Ireland. Exports of electronics products account for a third of Ireland's total exports.

Many electronics companies are increasingly engaged in complementary activities, such as software development, technical support and customer care. Companies such as IBM, Fujitsu, Motorola and DEC have seized the opportunity afforded by the availability in Ireland of highly skilled computer science graduates.

"The facility (in Ireland) has worked out even better than we had hoped...the productivity and quality of the product coming out of there are second to none."
Gordon Moore,Chairman, Intel Corporation

"The low cost way to support European customers is from a single site...Dell pioneered the trend by centralising European logistics and customer support in Ireland, which offers one of the lowest cost and most flexible working environments in Europe"
Michael Dell, President & Chief Executive, Dell Computers

FINANCE SERVICES

Established in 1987, Dublin's International Financial Services Centre (IFSC) has developed into a significant world financial centre. A wide range of internationally traded financial services companies are licensed to trade there in activities ranging from banking and mutual fund management to corporate treasury and captive insurance.

The centre is serviced by an extensive network of major international banks, brokerages and professional advisors. Leading corporates, such as IBM, Coca Cola, Hewlett-Packard and Pfizer, have established operations there.

Altogether, over 400 of the world's leading financial institutions have set up new operations in the IFSC. They include finance houses such as Citibank, Merrill Lynch, Mitsubishi Trust & Bank, Daiwa, Deutsche, AIG and ABN Amro. IFSC operations benefit from a 10% corporation tax rate which is supported by an excellent tax treaty network and an efficient regulatory environment.

"We are delighted to be re-inforcing our long-standing relationship with the Republic of Ireland through our plans to establish a new capital markets operation. The availability of a skilled and well-educated labour force and the favourable business environment created by the Irish Government make this endeavour a natural fit."
Daniel P Tully, Chairman & CEO, Merrill Lynch

"There is a good problem-solving attitude from anyone involved in the process in Dublin. The authorities have been accessible and very helpful"
Jean Louis de Gandt, Director, IBM International Treasury Services

INTERNATIONAL SERVICES

The availability of well-educated and highly skilled young staff, language skills, competitively priced state-of-the-art telecommunications and generous tax incentives have made Ireland the preferred location for companies engaged in a diversity of international services. These range from software development and production, multimedia and film to data processing, shared services, information services, laboratory and testing services.

Ireland is the capital of Europe for software localisation and production. Five of the world's top 10 independent software companies have major operations in Ireland and today over 40% of all PC packaged software and 60% of business application software sold in Europe is produced here.

Ireland is the top location in Europe for companies which provide telemarketing, customer support and technical services through call centres. Ireland's undisputed leadership in the newly emerging pan-European call centre business is a direct result of a well-focused and co-ordinated effort by Government agencies and Telecom Ireland, the national telecommunications supplier. It is a good example of the 'can do' attitude to be found throughout Ireland.

"Establishing Microsoft's European Operations Centre in Dublin is proving to be the best strategy we could have pursued. The combination of great telecommunications, a young motivated workforce and tremendous government support ensures our continued success well into the future.'"
Richard Post, General Manager, European Operations Centre, Microsoft

"When we weighed all of the factors involved, Ireland was the clear winner."
Geoff Obeney, MIS Director, Gateway 2000

STATE-OF-THE-ART TELECOMMUNICATIONS

Ireland has invested US$5 billion in recent years to give it one of the most advanced 'feature rich' networks in Europe. With diverse fibre optic connections on all major European routes, it delivers crystal clear connections worldwide. Features include, for example, an intercontinental routing service designed for companies with international call centres which provides a toll-free capability between Europe and the US. Ireland's sophisticated telecommunications system enables companies to: achieve economies by centralising their European administraion in Ireland; link design and development engineers, scientists and other R&D personnel across the globe for conferencing and real time development activities; provide marketing and customer support by telephone throughout Europe from a single call centre.

Ireland enjoys the lowest cost in Europe for toll-free services when discounts for volume users are taken into account. It is the stated objective of Telecom Ireland to remain the lowest cost service provider in Europe for international traffic.

AVAILABILITY OF SKILLED LABOUR

Ireland has an abundance of well-educated young people who are keen to embrace change. This represents an important competitive advantage for employers which is set to continue. In the year 2000, four out of every 10 people in Ireland will be under 25 years of age.

The quality of Ireland's education is exceptionally high. The independent IMD World Competitiveness Report ranks Ireland as one of the best in Europe for the quality of education which everyone receives. Six out of every 10 of Ireland's third level students major in engineering, science or business studies. While Ireland is an English speaking country, a significant proportion of students and graduates are proficient in more than one language. Companies establishing here have also found that young Irish people working and living elsewhere in Europe are keen to secure employment in Ireland.

Universities and colleges in Ireland have a strong tradition of collaboration with industry, particular in emerging high technology sectors, and maintain strong links with companies and other educational establishments throughout the world. It means that for many young graduates the transition from their academic studies to the workplace is a simple, natural progression. Furthermore, many young graduates work abroad following their studies in order to gain experience before returning to embark on their careers at home.

In Ireland there is a strong work ethos and an enthusiasm for 'getting things done'. This is reflected in the rate of employee turnover which is well below the European average. It means that employers enjoy greater commitment from their workforces, have higher proportions of appropriately experienced personnel and incur lower annual training costs.

The quality of Ireland's educational system, the availability and flexibility of a young workforce and the low rate of employee turnover combine to deliver true competitive advantage to business in Ireland. All these factors result in Ireland offering the best availability of skilled labour in the world.

LOW TAX AND GENEROUS INCENTIVES

Profits derived from manufacturing and qualifying services are subject to a tax rate of 10%, which will apply until at least 31st December 2010. They can be freely repatriated and are not subject to withholding taxes. For companies engaged in R&D, patent royalty income on products developed in Ireland is tax free.

Generous grants towards start-up costs, including capital investment, training and employment costs, are available, as are grants towards investment in R&D projects.

LOW EMPLOYMENT COSTS

The costs of operating in Ireland, including employment costs, are lower than in most other European countries. This advantage is enhanced by the ready availability of a more productive and flexible workforce. Low rates of staff turnover deliver productivity benefits and savings on training costs.

The cost of telecommunications is increasingly a key consideration for international investors. Ireland enjoys one of the lowest tariffs in Europe. It is, for example, the most competitive country for pan-European toll-free services when volume-user discounts are taken into account.

Ireland is set to remain a competitive cost base for business. The rate of inflation in Ireland has consistently been amongst the lowest in both the European Union and the OECD over the past decade. Between 1986 and 1995 inflation averaged about 2.35% per annum and this trend is forecast to continue.

WORLD CLASS SUB-SUPPLY

A strong, high quality support structure has developed in Ireland to meet the ever growing needs of industry. This includes a comprehensive range of competitive specialist suppliers which have emerged in recent years to meet the exacting requirements of companies engaged in hightech sectors, such as electronics, software, pharmaceuticals and healthcare products.

Support companies in Ireland operate to the highest international standards, such as ISO 9000. In keeping with the export orientation of industry in Ireland, many sub-supply companies provide their companies throughout Europe and the wider world as well as to customers located here.

Services available to software companies include disk and CD manufacturing, mastering and duplication, user manual printing, packaging, turnkey and fulfilment services and technical support. Specialists in clean room and sterilisation services support the activities of companies in the pharmaceutical and healthcare products sector.

GOOD QUALITY OF LIFE

Ireland affords an exceptionally good quality of life for people working here. High quality education is available for pupils of all ages. Schools and colleges are available to meet the specific needs of visting students. While Ireland's cities are cosmopolitan and sociable, unspoiled countryside and spectacular scenery is always nearby. Residents enjoy ready access to a full and varied range of leisure activities, from theatre and restaurants to golf, horse riding and fishing.

STRONG SUPPORTS ON THE GROUND

IDA Ireland is the Irish government agency which ensures that overseas companies establishing or expanding their operations in Ireland receive the best advice and assistance. Ireland offers such investors a highly competitive package of investment supports. IDA Ireland provides its services through dedicated teams of industry specialists in 14 offices worldwide.

IDA Ireland co-ordinates all the services and supports needed to ensure that your start-up or expansion is trouble-free and efficient-and experienced and professional 'one-stop-shop' to anticipate and meet your needs.

ENGINEERING

Leading engineering companies from throughout the world have been attracted to Ireland, where they are engaged in a diverse range of activities. Automotive components and aerospace technology are two of the most important and rapidly growing sectors in Ireland today.

Ireland exports close to US$1 billion worth of automotive components every year to customers in Europe, the US and the Far East. The products manufactured range from turbochargers by Allied Signal and mirror glass to cable harnesses by Kromberg & Schubert.

In the aerospace sector leading international companies with operations in Ireland include Pratt & Whitney, Westinghouse, Moog and Sifco Turbine. Their activities range from airframe and jet engine maintenance to sophisticated electronic sub-assemblies.

A highly trained and experienced workforce of designers, toolmakers and engineers, using the latest technology in CAD/CAM and CNC equipment, has earned Ireland an international reputation for excellence in toolmaking.

"The skillbase within the Irish workforce has been utilised by Thermo King at its manufacturing locations in Galway and Dublin. These skills, coupled with a highly technical education base, in an environment of flexibility and teamwork, has been recognised by our parent, Westinghouse, both locally and internationally."
Christy Hayes, Managing Director, Thermo King Europe

"We have grown here from a small company involved in manual assembly to a highly automated plant, with its own R&D department, which manufactures products that are at the forefront of applied new technology. We are now a major employer and expect to continue growing"
Christopher Sanders,Managing Director,Kostal

CONSUMER PRODUCTS

Ireland has a well-deserved reputation for craftsmanship and attention to detail. Waterford Glass, for example, is renowned for its fine crystal. Many international companies have taken advantage of Ireland's competitive cost and skill base for their own consumer product activities.

These range from top quality writing instruments crafted by AT Cross to games made by Hasbro. Leading clothing company Fruit of the Loom makes casual wear in Ireland in Europe's largest vertically integrated knitwear facility.

In household products Braun, part of the US Gillete Group, loudspeaker manufacturer Bose and kitchen appliance company Krups all gain European competitive advantage by manufacturing in Ireland..

"There is tremendous teamwork and fantastic stability in Ireland. Most people hired 13 years ago are still with the company. They take pride in their job and the work ethic is great. Ireland is a very easy place to do business."
Tom Beeson,Vice President-Manufacturing , Bose Corporation

"We have a well educated workforce due to a high calibre education system and in-house training programme. It is vital that we develop, implement and support the most up-to-date manufacturing systems in order to remain competitive in a global manufacturing environment. I have full confidence that we will meet the challenge."
HJ Dittombee, Managing Director, Braun Ireland

HEALTH CARE

Pharmaceutical and medical products companies from around the world use Ireland as a base for developing, manufacturing and marketing a diverse range of products, from analgesics to disposable contact lenses. Between them they generate US$6 billion of exports every year.

Thirteen of the world's top pharmaceutical companies and 10 of the world's top 15 medical products companies have operations in Ireland.

They are attracted by the availability of highly skilled staff, the responsive attitude of regulatory authorities to their needs and the high quality of supply services. Many companies have shown their satisfaction with Ireland as a base in the most tangible way of all, by re-investing. American Home Products and Abbott Laboratories each have five operations in Ireland, while Johnson & Johnson and Pfizer have three each.

"Ireland places great emphasis on higher education, providing us with the college and university graduates required in our biotechnology operations."
Robert P Luciano, Chairman, President & CEO, Schering-Plough Corporation

"We looked hard at a number of European locations. What made the difference for Ireland was the infrastructure, the spirit of co-operation here...and most of all the availability of skilled personnel."
Donald Robinson, Director-Corporate Engineering, Boston Scientific BR

Speaking at a news conference in the House of Commons,24 October 1996, the leader of the Scottish National Party Mr Alex Salmond MP published research information from the Commons Library which states that, on current growth trends, Ireland will overtake the UK in terms of gross domestic product (GDP) per head by the year 2000.

"On current growth levels, Ireland will become more prosperous than the UK by the year 2000, in terms of gross domestic product per head. They have already overtaken Wales and Northern Ireland.

But compared to Scotland, Ireland has next to no resources. They have used their imagination and human resources in order to drive their economy forward.

POEMS, PRAYERS AND PROFITS

by Alex Salmond MP, 23rd November 1996

Recently I went to Dublin to make a film for Scottish Television's political programme 'Platform'. Like every visitor to Ireland I am always struck by the energy and vigour of the whole country. There is a 'go-ahead' youthful confidence about the place. It is well placed confidence. Ireland was traditionally viewed from Britain as a humour-filled but rather poor and backward country, famed more for its literature and religion than its economy. The reality has of course always been somewhat different from Britain's more than condescending view. Ireland is one of the most popular countries in the world and over the last decade Ireland has also become what the Financial Times has called - "Europe's Tiger Economy".

Ireland's economy is the fastest growing in Europe. This new wealth creation is bringing with it a growth in jobs, which is in many ways more important than the money growth for a country which has had a serious unemployment problem.
Remarkably, in 1996 Ireland will experience a net in-migration of around 6,000. This is a sharp reversal of the historic trend where Ireland's youngest and best were forced abroad to seek theirfortunes - an experience we know all about in Scotland. What a testimony to Ireland's success.
Just as remarkable is research from the House of Commons Library which forecasts that wealth per head in Ireland will overtake the UK in the year 2000. Ireland is already richer than Northern Ireland and Wales and is set to overtake the rest of the UK. Ireland - richer than Scotland, richer than England. What a fitting way for this dynamic young country to mark the new millennium."

SOME FACTS AND FIGURES