Post on 28-Dec-2015
Attracting International Attracting International
Investment Investment - the Irish Experience- the Irish Experience
Presentation to the 4Presentation to the 4thth GCC GCC Conference, Abu Dhabi, Conference, Abu Dhabi,
May 5, 2004May 5, 2004
Overview of IrelandOverview of Ireland• Population 3.9 million
• Total at Work 1.8 million (was 1.1 million in 1990)
• Area 70,282 sq. km
• Climate Temperate
• Exports / GDP 92%
• GDP per capita $30,000 ( ppp year 2001)
• Over the past seven years, Ireland’s economic performance has been spectacular (International Monetary Fund 2000).
• The average annual rate of increase in Irish GDP has been 8.5% over the 8 year period 1994 - 2001, the highest in the EU and in OECD.
Ireland’s Economic HistoryIreland’s Economic History
• 1922 - 1958– a basic agricultural economy– self-sufficiency and protectionism
• 1958 - 1973– opening up and joining Europe (EEC)
• 1973 - 1987– some success, adjustments, but crises also
• 1987 to date– ‘stunning’ development and growth
Ireland’s Economic GrowthIreland’s Economic Growth
0
1
2
3
4
5
6
7
8
9
1970-79 1980-87 1988-93 1994-2001
EU
US
Ireland
AverageAnnual% RealGDPGrowth
Source: OECD Economic Outlook
Irish Factor and Productivity Irish Factor and Productivity Growth 1990 - 2000Growth 1990 - 2000
0 2 4 6 8 10 12
ManufacturingProductivity
ManufacturingProduction
Total FactorProductivity
LabourProductivity
Employment
% average annual growth
EU
US
Ireland
Source: European Competitiveness Report 2001
Ireland in the 1990sIreland in the 1990s
• Results from development decisions of earlier decades and from EU membership
• European Single Market
• Social partnership and economic stability
• Demographic gains - more young people
• Foreign Direct Investment (FDI)
• Global orientation and openness
Social PartnershipSocial Partnership
• 1987 – Major Challenge– rising unemployment (17%) and emigration– public finance deficits and debt (120% of GNP)– loss of jobs and of national confidence
• National Social Partnership Agreement– employers, trade unions, farmers & government– moderate wage increases and tax cuts– consensus on development priorities– shared efforts to achieve national goals
Education and SkillsEducation and Skills
• Youngest population in Europe – 40% under 26 years; 30% elsewhere in EU
• 57% of graduates are in science, engineering, computer or business studies
• Government initiatives to meet future need
Ireland’s AdvantagesIreland’s Advantages
• Young, vibrant and highly-skilled workforce
• Consistent public policies, including low tax
• Strong developmental focus nationally, with strong, informal network links
• Agility, creativity, flexibility and ‘can do’
• Rapid responses e.g. skills development
• Successful development of high-technology, high-productivity, trade-based FDI
FDI in Ireland - HighlightsFDI in Ireland - Highlights
• Leading European location for electronics
• World’s largest exporter of software
• All top pharmaceutical and medical device companies have plants in Ireland
• Highest return on investment in Europe for US companies (U.S. Department of Commerce)
• >80% of manufactured exports
• >35% of Gross Domestic Product
Key Features of FDIKey Features of FDI• No ownership restrictions in Ireland• No discrimination in operating conditions• Appropriate licensing and regulation• Key sectors:
– Information and Communications Technology– Pharmaceuticals and Healthcare– Internationally Traded Services– International Financial Services– e-business
2 9 5 S ta f f
S ectora l D iv is ions ,R eg ions & O versea s
E xecutive C om m ittee
C hie f E x ecutive
I D A I r e la n dB o a r d (1 2 M e m b e r s)
F orfas(P o lic y A d vic e )
S c ience F ound ationIre land
(R e se a r c h F und ing )
E nterp r ise Ire land(S up p o r t fo r Ir ish -o w ne d
b usine ss a nd tr a d e )
M in is te r fo r E nte r p r ise ,T r a d e & E m p lo ym e nt
G o v e r nm e nt
Marketing ProcessMarketing Process
• Identify and access target companies
• Build relationships and understand needs
• Match our offering to their needs
• Provide ‘one stop shop’ service
• Deliver offering and perform to promises
• Provide top quality aftercare
• Continue and deepen relationships
IDA Worldwide
San Jose
New YorkAtlanta
Chicago Boston
United Kingdom
Germany
Netherlands
Japan
Korea
Taiwan
Australia
Dublin International Financial Dublin International Financial Services CentreServices Centre
• Government decision – 1987• Implementation by committee chaired by
Secretary General to the Prime Minister• 10% Corporate Tax agreed with EU• Local development incentives• Local banks engaged positively to promote• Marketing team engaged with global
Instituutions – attracted role models
Key Background FactorsKey Background Factors
• Open, responsive business environment• Welcome for, and success with FDI• EU and OECD membership and policy continuity• Free access (“passport”) for services throughout
the EU• Free capital movement• Educated population with business orientation• Professional Services with global outlook• Low corporate taxes
Main Activities in Dublin
• Banking, asset financing and securitisation, leasing
• Corporate Treasury Management• Fund and investment
management/administration• Insurance
– Life and non-life/general– Reinsurance, captives and broking
IFSC Statistics
€ billion Bank assets of international banks 207 NAV* of domiciled investment funds 375 NAV* of all funds 558 Cross-border life assurance premiums 5.6 Cross-border gross non-life premiums 10 Assets of international non-life insurers 30Number of domiciled investment funds - 3394Direct Employment – 12,000
International Banks in Dublin
Corporate Treasuries in Dublin
Fund Promoters & Administrators
The Future for FDI in IrelandThe Future for FDI in Ireland
• High value knowledge-based activities
• Education, skills, research and innovation will be key competitive advantages
• New technologies and business models
• Better regional spread sought
• Better integration of FDI and Irish business
• FDI will continue to be of great value to us
Attracting International Attracting International Investment – The Irish Investment – The Irish
ExperienceExperience