Tuesday, November 21, 2006

Ireland and the Philippines

In just over a generation, Ireland has evolved from one of the poorest countries in Western Europe to one of the most successful. It has reversed the persistent emigration of its best and brightest and achieved an enviable reputation as a thriving, knowledge-driven economy.
As a result of sustained efforts over many years, the past of declining population, poor living standards, and economic stagnation has been left behind. Ireland now has the second highest gross domestic product (GDP) per capita within the European Union (after Luxem­bourg), one-third higher than the EU-25 average, and has achieved exceptional grow.

One of the biggest successes of the Irish economy has been new job creation. From 1990 to 2005, employment soared from 1.1 million to 1.9 million. Economic growth, more jobs, and rising living standards meant the resolution of the emigration problem, which had bedeviled Ireland for generations.

How Ireland Became the Celtic Tiger
by Sean Dorgan of Heritage Foundation

If you are familiar with history, Philippines and Ireland have a lot of in common :

1. Both are Catholic country.

2. Stagnation and emigration are a way of life.

3. English speaking and low labor cost

4. Companies are uncompetitive

5. depended heavily on agriculture

6. high unemployment

7. drain of human capital due to immigration

8. persistent inflation

9. huge public debt

10. government responsible for excessive and misguided public spending.

How come Ireland became the most successful economically with the 2nd highest per capita in all of Europe while the Philippines remain at the bottom of the heap in Southeast asia?

Their secrets :

a) At the heart of these policies was a belief in economic openness to global markets, low tax rates, and invest­ment in education.

b) Ireland’s transformation was national in scope, with individu­als, businesses, institutions, and government sharing the same ambition.

c) It involved parents deciding that their children would have choices that they did not have and would not be forced to leave their home com­munities because of economic necessity.

d) Political decisions were driven and sustained by the public will for success.

e)Smaller government became part of the road to success. There was surprise with the first moves to cut spending severely across a range of programs and abolish a number of government agencies.

f) moderate wage increases in return for modest reductions in direct income taxes, in effect allowing take-home pay to increase more than the pay raise granted by employers.

g) While cutting back on spending, the govern­ment took steps to promote business investment.

h) The people of Ireland have assiduously invested in human capital over the past 40 years. Ever since the OECD published Investment in Education in 1966, education has had a central position in Ireland’s development policies. Education in state colleges and universities is free from elementary up to college.

This economic openness, combined with low taxes, pragmatism and ambition, further invest­ment in education, and a continuing eye to the future, are the ingredients for success. this only prove that hard work and good policy can bring rewards.

Let us test the current regime claim that they will make the Philippines a First World country when they step down in the year 2010. Check the space if the current policy exists in this regime:

[ ] The economy is open to the global market.

[ ] Companies and workers enjoy low tax rates.

[ ] Investment in Education is their priority.

[ ] The government enjoy the trust of the people, businesses and institutions

[ ] The government is not encouraging immigration because there are lot of jobs available.

[ ] They cut spending accross all government programs.

[ ] They abolish a number of government agencies.

[ ] education is free in all state colleges and universities from elementary to college.

7-8 yes answers. Congratulations you live in a First World Country.

5-6 yes answers. Thank your government. They take care of you

4 below yes answers. Peace man! Throw the gun!


1 comment:

  1. Kumusta po sir! I was browsing SHC's website when I noticed your blog. You have so many informative blog entries and I really appreciate them. I am also a cordian, I graduated in 1991 and taught for 1 year at lower BED.You can ask Mr. Jay Merle about me. I was also a Vincentian working student. My co-Vincentians are still there like Mrs. M.Asia, Mr. Catapang, Mr. Uriarte etc. I hope a lot of SHC students can view and read your blogs. They are interesting.Kudos!