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1 OVERVIEW OF STRUCTURAL FUNDS IN IRELAND 1989-2006
OUTLINE OF PRESENTATION Structural Fund history in Ireland The National Development Plans Structural Fund contribution to the NDPs Ireland’s economic performance and Structural Funds Lessons 2
HISTORY OF STRUCTURAL FUNDS IN IRELAND Structural Funds a well-established tool of EU regional policy ESF (1958), EAGGF (1958), ERDF (1975), FIFG (1994), Cohesion Fund (1992) 1988 – major reform of Structural Funds at EU level large increase in Structural Fund assistance for Ireland 3 Irish National Development Plans 1989-93, 1994-99, 2000-06 Ireland has received over €17 bn in support since 1973 over 75% of support received since 1989 3
IRELAND IN 1988 4 1988EU Average GDP Growth4.34.2 GDP per Capita€8,156€11,848 Unemployment Rate16.1%- Exports as % of GDP52.12%- Agriculture as % of the Labour Force12.8%- Source: Eurostat, Central Statistics Office (Ireland)
THE NATIONAL DEVELOPMENT PLANS PLANOPERATIONALPROGRAMMES NDP 1989-93 (€11.6 mn) Industry Agriculture and Rural Development Tourism Human Resources Peripherality (Transport) Telecommunications and Postal Services Energy Sanitary and Local Services NDP 1994-99 (€22.2 mn) Industrial Development Agriculture, Rural Development and Forestry Transport Human Resources Development Fisheries Tourism Economic Infrastructure Environmental Services Local, Urban and Rural Development NDP 2000-06 (€59.7 mn) Economic and Social Infrastructure Employment and Human Resources Development Productive Sector Southern and Eastern Region Border, Midland and Western Region 5
SHIFT IN PRIORITIES – NDP OBJECTIVES PLANOBJECTIVES NDP 1989-93 prepare the economy to compete successfully in the internal market reduce unemployment, raise productivity and increase per capita income to average EU levels improve further the state of the public finances accompany economic growth by a greater social dimension in our society NDP 1994-99 ensure the best long-term return for the economy by increasing output, economic potential and long-term jobs re-integrate the long-term unemployed and those at high risk of becoming so into the economic mainstream NDP 2000-06 continue sustainable national economic and employment growth consolidate and improve Ireland’s international competitiveness foster balanced regional development promote social inclusion 6
CHANGES IN NDP STRUCTURES Evolution from “spending plan” to “strategy” Fewer but larger OPs Change in Structural Fund status – Objective 1 in Transition Move to some regional implementation – BMW and S+E % contribution of Structural Funds to NDPs has decreased 7
STRUCTURAL FUND CONTRIBUTION TO NDPs 1989-931994-992000-06 Structural Funds (€mn) 4,2545,9783,174 Total NDP Spend (€mn)* 11,60022,20059,700 % SF Contribution37%27%5% * includes all EU, public and private forecast expenditure 8
IRISH CONVERGENCE – SLOW COMING 9 GDP at current market prices per head of population, 1973-2003 (PPS; EUR-15 = 100) Source: Department of Finance Ireland, & Eurostat
IRELAND’S PERFORMANCE 1988-2003 10 19882003 GDP Growth (EU average) 4.3% 4.2% 5.7% (2001) 1.5% (2001) GDP per Capita (EU average) €8,156 €11,848 €27,470 €23,180 Unemployment Rate16.1%4.9% Exports as % of GDP52.1%99.8% Agriculture as % of the Labour Force12.8%6.3% Source: Eurostat, Central Statistics Office Ireland
WHAT CAUSED THE CELTIC TIGER? 11 Macro Policy Global Economy Enterprise Policy “Structural Funds” Labour Supply Infrastructure Social Partnership
LESSONS Structural Funds have been a big “+” for Ireland Direct impact (e.g. infrastructure, tourism) and indirect impact (e.g. enhanced planning, project management and evaluation) BUT … A contributory factor to Irish success, not the dominant factor More to do (without significant Structural Fund assistance) 12
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