Ireland – a model of business success in the global economy?

CIEE International Faculty Development Seminar

• Usha Ramanujam, Instructor, PCC, Business AdministrationGlobal Economy – Celtic Tiger

• VedVyas Shanbhogue, Intel Corporation, Portland, ORIntel Corporation in Ireland

• Cynthia McBurney, Owner, Kathleens of Dublin, Portland, ORImports from Ireland

• Monica Sharma, PCC Alumna & Accountant, Ike Corporation, Beaverton, ORHow does PCC education help in an import/export company?

Global Economy: The Celtic Tiger

By Usha Ramanujam

Agenda

• About CIEE

• Some background on Ireland

• Surge of the Celtic Tiger

• Current challenges

• Summary

About CIEE• Council on International Educational

Exchange• International Faculty Development Seminars

(IFDS)– Faculty and Administrators are selected by PCC

International Education

• Goals– Promote educational experiences abroad– Lectures– Tours

To Ireland..

Monday, July 2: First and Second Lectures

All lectures @ Dublin City University (DCU)

• DCU was established in 1980

• 85-acre campus, almost 10,000 students

• Has a large study abroad program

• PSU students participate frequently

Historical Background

1948• Ireland (The Republic) createdAmerican born Eamon De Valera was the first President

Historical Background

1948• Ireland (The Republic) createdAmerican born Eamon De Valera was the first President

• Northern Ireland remained part of UK

The Republic & Northern Ireland

Historical Background

1948• Ireland (The Republic) createdAmerican born Eamon De Valera was the first President

• Northern Ireland remained part of UK

1973Ireland joined EU

Was the poorest member

Historical Background

1948• Ireland (The Republic) createdAmerican born Eamon De Valera was the first President

• Northern Ireland remained part of UK

1973Ireland joined EU

Was the poorest member

1996Celtic Tiger growth begins

Wednesday, July 4: The Fourth, Fifth, and Sixth Lectures

“The Devil is in the Detail: The Underbelly of the Celtic Tiger”

by Dr. Peader Kirby

The surge of the Celtic Tiger

Year Unemployment Rate

1992 15.4%

2006 4.3%

The surge of the Celtic Tiger

Year Unemployment Rate

1992 15.4%

2006 4.3%

10.7% annual growth between 1994 to 2000

What attracted Multinationals to Ireland?

• Foreign Development Investment (FDI)

• Corporate tax breaks

• English speaking work force

• Low wages

• Availability of EU funds to create innovative social partnerships

Additional factors boosting the economy

• Women joined the workforce• Higher levels of immigration to Ireland• Creation of jobs in high tech sector• Return of the Irish Americans

Slowing down…..since 2002

• Increase in minimum wages (€8.75)

• Lack of indigenous commitment to research and development– High Tech companies only have assembly line jobs

• Disintegrating educational system• Rising interest rates and growth in private debt• Disparity in wealth • Decline in agriculture and production industries

The current growth is in ..

• Civil Service• Construction

– 44% increase

– Microsoft• 800 jobs to construct

datacenter

• Less than 30 to operate!

The current growth is in ..• Consumer spending

Thursday, July 5: Trip to Belfast, Northern Ireland

Religious differences

Shankill Road Mural

Loyalists vs. Nationalists

Loyalists vs. Nationalists

Falls Road Mural

Northern Ireland is

still isolated

Summary

• What has worked for the Irish economy?– Being part of EU– Tourism and strong Euro

• What can sustain the Celtic Tiger?– Develop indigenous technologies– Reduce religious/political conflicts

• Impact of International Education @ PCC– International Financial Reporting Standards

introduced in Principles of Accounting II (BA 212)