Guidebook to Ireland Inc’s serial underperformance

A new book by University College Cork economist Dr Eoin O’Leary presents lobbying in Irish politics as a disease responsible for decades of economic underperformance. “The Irish policy mind-set can be likened to a split personality,” says O’Leary. “Outwardly, ‘Ireland Inc’ has been successful in attracting foreign businesses and lobbying governments. However, inwardly, its pre-disposition to lobbying has resulted in recurring self-inflicted crises.”

Irish Economic Development: High-performing EU State or Serial Under-achiever? (Routledge) was launched yesterday in Cork by Senator Seán Barrett. Taking aim at rent-seeking by property developers and unions, O'Leary argues that the Irish tendency to favour lobby claims over policies to boost productivity has wrought terrible damage. "There is compelling evidence of an unhealthy relationship between property developers and Fianna Fáil, which, combined with light-touch financial regulation, contributed to the collapse of the property bubble after 2008 and the subsequent arrival of the troika. However, a source of rising housing demand during the 2000s was escalating wages, fed by the public sector benchmarking debacle. This was due to the government acquiescing to calls for 'payback-time' by trades unions."

All of this is rather salutory and rather pertinent. As the economy improves, the clamour for recovery dividends will only intensify as the election approaches. The danger remains that past error would be repeated. It’s fitting, therefore, that O’Leary’s book appears in the week in which the Registration of Lobbying Bill cleared the Houses of the Oireachtas. The President’s signature is awaited.

The objective is to provide public information “on the identity of those communicating on specific policy, legislative matters or prospective decisions with designated public officials.”

This is a step in the right direction.