HOW IRISH people see themselves is reflected in domestic media coverage and in opinion polls that record public attitudes and help define the national mood. But how those outside the country view Ireland matters almost as much. Their image of Ireland, their perception of the Government, the economy and Irish people influence the judgments they make: whether to locate investment in Ireland, to buy Irish government bonds or exports, or to come here as a tourist.
At the Farmleigh economic forum, hosted by the Department of Foreign Affairs last month, some major business, media and cultural figures from Ireland and abroad pooled their best ideas on how to stimulate national economic recovery. The encounter, set against the backdrop of an economy in crisis, provided an opportunity for plain speaking and self-criticism. The guests, whether foreign or Irish, hardly spared the blushes of their Government hosts in highlighting mistakes made and in prescribing solutions
A report by the department on the forum – details of which were published yesterday – noted that some participants felt Ireland’s international image was damaged by the sharp deterioration in the economy, by the inept handling of the major banking difficulties that followed and by a public perception “of inadequate ethical standards in public office and the banking sector”. The financial debacle at Anglo Irish Bank, the department observed, was described “as a PR disaster leading to an unfair view abroad that all Irish banks are corrupt”.
For the Government, the challenge has been to restore international confidence in the domestic economy by better management and in the financial system by better regulation of banks. The department noted how one forum participant felt that a visit last March by the Minister for Finance to reassure London’s financial community about Ireland’s capacity to meet its financial obligations helped to restore Ireland’s credibility with international lenders.
As more governments sell more bonds this year to finance their soaring budget deficits, international competition for buyers of sovereign debt has greatly intensified. Governments everywhere have been forced to market their debt more intensively. With some four- fifths of Irish government bonds held by foreign lenders, financing Ireland’s borrowing needs on competitive terms remains a challenging task. It is one where Ireland’s international image and financial reputation assumes a critical importance.