Economics
Published on September 22, 2004 By Solitair In Politics
O. G. San recently wrote two very interesting articles looking at how the case for a united Ireland has changed over the past 90 years.

https://www.joeuser.com/forums.asp?MID=3&CMID=38&AID=28016#123271
https://www.joeuser.com/forums.asp?MID=3&CMID=38&AID=28255#123863

Following his suggestion I'll continue the discussion with the topic of economy.

If you wandered around the island of Ireland early in the century and even up to the early seventies, you would have been struck with the difference in the wealth between northern Ireland and the south. Northern Ireland was a rich part of the country with a strong manufacturing background. The rest of the Island was primarily agriculturally based with a lower standard of living. Things changed drastically in the 1970's when the troubles started in the north. The economy suffered and stagnated resulting in a stagnent quality of life while surrounding regions increased. In the Republic the joining of the EEC (EU) focussed government and minds on industry and expansion.

Along came the 1980's by which time the GDP per head in the republic was rapidly catching up with the north. When Maggie signed the Anglo Ireland agreement in 1996 it was almost equal. In the late 80's and throughout the 90's the Irish economy roared ahead overtaking both Northern ireland and then a few years later the Uk itself. Irish GDP grew at twice the rate of the US, three times the rate of the UK and four times the rate of Northern Ireland for the entire 90's decade.

Today (2003) it stands in GDP terms as one of the richest economies in the EU (38.1k per head), and ahead of the US (37.4k per head), Japan (34k per head), UK (30.4k per head) and Germany (29.3k per head) (world bank 2003 statistics).


The views both in the republic and in Northern Ireland have changed drastically over the previous twenty years.
Firstly the views of the republic towards the north. Back in the '80's it was inconceiveable that Northern Ireland should unite with the republic. Christmas usually involved a trip to Northern Ireland to buy cheaper presents from the wider products on offer. Investment in the republic was at a low level and very little cross-boarder trade occurred. Both were suffering huge unemployment and neither could have afforded the social and cohesion costs associated with such a union. Today the Republic has low unemployment (under 5%) and is awash with money. Investment in northern Ireland by Irish firms is at an all time high, with huge levels of cross border trade (though a lower fraction of total trade). A unified country would appeal even further to foreign multinationals, thus increasing investment futher and the added workforce is sorely needed in the south. Immigration (both Irish returning and economic immigrants from other countries) has created an enhanced sense of nationality and shown the benefits of expansion and encompassing change. The idea of changing the population balance in the country brought fear in the 80's, today the population is changing due to immigration almost 1/4% annually.

Secondly the views from Northern Ireland. In the 1980's Northern ireland looked to the south and saw an agricultural, porr country, with little or no interaction with others cultures and beliefs. Today the situation is very different. Northern Ireland is suffering from a stubborn higher rate on unemployment and lower living standards (GDP about 80% of UK level). it now looks south to see a rich, industrialised landscape, being culturally changed on a daily basis that would be happy to accept them as equals. It sees a low unemployment rate, and a country actually importing workers due to a lack of local supply. It sees a higher standard of living. What was an undesireable union for most of the century is now economically desireable.


Ireland is now in the situation that the republic wants and needs the labour supply from northern Ireland and the increased population, which the north greatly wants to be part of the Celtic Tiger economy. Both sides would be economic winners in any union. Combine this with the changes to the politically and social landscape and you now have very strong reasons for unity, which would be beneficial to all.

Paul.

Comments
on Oct 08, 2004
Thanks for that, Paul.

I rmember in the 80s and, even the early 90s, the Republic was considered a bit of a joke in the community in which I grew up. Thankfully that's all changed. Unity is at least concievable now in economic terms. Compared to the economic costs of unifying the two Koreas, Irish unity would be a cakewalk.

One step at a time though, first of all, this absurd currency partition has to end. It really is pointless. Don't see it happening any time soon coz the British public are quite anti-Euro.
on Oct 08, 2004
Would be hilarious if Northern Ireland, Scotland and Wales all tried to join the Euro without England! makes particular sense for Northern Ireland. I can't even use my Northern ireland bank notes in most of the UK!

Paul.