Rural economy hit particularly hard by crisis, forum hears

IRELAND’S RURAL economy was particularly exposed to the economic crisis due to the large number of men working in the construction…

IRELAND’S RURAL economy was particularly exposed to the economic crisis due to the large number of men working in the construction and transport sectors, a conference in Cork has heard.

David Meredith from Teagasc’s Rural Economy Research Centre, cited recent research indicating women fared little better, as many worked in the retail sector which has suffered a sharp contraction in employment.

The growth of these sectors during the Celtic Tiger period masked underlying and persistent weaknesses in the rural economy, he told the Irish Rural Studies Symposium 2010.

“With the collapse of the economy, these weakness and their attendant problems of creating jobs and sustaining population are once again exposed,” he said.

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“Looking to the future, these challenges are compounded by the fall in family farm incomes in recent years, the long-term impacts of renewed emigration and the increasing prevalence of rural poverty, particularly in areas that saw rapid population growth since 2000,” he said.

Dr Kevin Heanue, from Teagasc’s Rural Economy Research Centre highlighted the menu of potential strategic responses to the economic crisis and their implications for rural areas.

“Employment from foreign direct investment in sectors such as medical devices, information and communications technology, financial services, food, travel, entertainment, and digital media which is seen as part of the solution by the Department of Enterprise, Trade and Employment, will be largely urban based,” Mr Heanue said.

“Based on current trends, the largest towns and cities will benefit most from these developments,” he added.