Transcript Overview of Structural Funds in Ireland 1989-2006

OVERVIEW OF
STRUCTURAL FUNDS
IN IRELAND 1989-2006
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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
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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
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IRELAND IN 1988
1988
EU Average
4.3
4.2
GDP per Capita
€8,156
€11,848
Unemployment Rate
16.1%
-
Exports as % of GDP
52.12%
-
Agriculture as % of the Labour Force
12.8%
-
GDP Growth
Source: Eurostat, Central Statistics Office (Ireland)
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THE NATIONAL DEVELOPMENT PLANS
PLAN
OPERATIONAL PROGRAMMES
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
NDP
1989-93
(€11.6 mn)
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SHIFT IN PRIORITIES – NDP OBJECTIVES
PLAN
OBJECTIVES
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
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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
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STRUCTURAL FUND CONTRIBUTION TO NDPs
1989-93
1994-99
2000-06
Structural Funds
(€mn)
4,254
5,978
3,174
Total NDP Spend
(€mn)*
11,600
22,200
59,700
% SF Contribution
37%
27%
5%
* includes all EU, public and private forecast expenditure
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IRISH CONVERGENCE – SLOW COMING
GDP at current market prices per head of population, 1973-2003
140
120
100
80
60
40
20
(PPS; EUR-15 = 100)
Source: Department of Finance Ireland, & Eurostat
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20
03
20
01
19
99
19
97
19
95
19
93
19
91
19
89
19
87
19
85
19
83
19
81
19
79
19
77
19
75
19
73
0
IRELAND’S PERFORMANCE 1988-2003
1988
2003
4.3%
4.2%
5.7% (2001)
1.5% (2001)
GDP per Capita
€8,156
€27,470
(EU average)
€11,848
€23,180
Unemployment Rate
16.1%
4.9%
Exports as % of GDP
52.1%
99.8%
Agriculture as % of the Labour Force
12.8%
6.3%
GDP Growth
(EU average)
Source: Eurostat, Central Statistics Office Ireland
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WHAT CAUSED THE CELTIC TIGER?
Macro
Policy
Global
Economy
Social
Partnership
Enterprise
Policy
Infrastructure
“Structural
Funds”
Labour
Supply
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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)
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