First Programme for Economic Expansion (FPFEE) Notion of change Impact of change Politics: move away from constitutional issues towards economic problems Administration: new original thinking post DeValera Society: impact of Vietnam War, moon landing-racial conflict in America-emergence of youth culture Economy: focus on poverty, emigration& unemployment Religion: Second Vatican Council, emergence of woman's rights, influence of television

Key Terms Economic Depression; When a country experiences a downturn it is often aid to be in a depression. Free Trade;the buying and selling of goods internationally without government restrictions on imports i.e. no tariffs Protectionism; the idea that domestic producer can be protected and helped to thrive by placing tariffs on certain imports

Key Terms Gatt; General Agreement on Tarriffs and Trade; It came into effect onJanuary 1st 1948 with the purpose of promoting international Trade IMF; International Monetary Fund; It was formed in 1945 and aims to promote international trade and monetary cooperation and to help tabilize exchange rates

Key Terms GDP; Gross National Product; It is the total value of the products and services produced by the people of a country over the course of a year, not including any income which is earned abroad White Paper; White Papers are policy documents to set out the basis for future legislation or significant government initiatives

Questions 1. Name and explain the economic policy in Ireland prior to FPEE? 2. Who appointed TK Whitaker to government and what party did he belong too? 3. Give two proposals of the policy of free trade? 4. Explain the term economic depression? 5. What was GATT & Explain its purpose? 6. What was the IMF & Explain its purpose? 7. What does the term White paper mean? 8. Give two issues that were prevalent in Ireland CIRCA 1950-56?

Key Personalities TK Whitaker Sean Lemass Economist-Secretary Dept of Finance -39yrs Believed economic protectionism should end Believed in long-term economic planning Published report Economic Development Formed the basis for First Programme for Economic Expansion Minister Industry+Commerce-1951-4 and 1957-9 Wanted industry to be competitive – market economy based on free trade Supported Whitaker`s plan as Minister and had the political will to drive it forward as Taoiseach in 1959

Economic Development First accurate economic analysis of 1950`s Ireland Argued that protectionism had failed miserably i.e. sheltered uncompetitive failing industries Lack of competition led to policy of despair i.e. high emigration, slow growth, inflation, serious difficulties Solution was free trade n.b. end protectionism Emphasis should be on industry not agriculture Notion of self-sufficiency was dropped

Economic Development Lemass adopted First Programme for Economic Expansion as Minister in 1958 Became Taoiseach 1959 - driving force behind the plan Encouraged foreign investment i.e. IDA given increased resources Encouraged export led growth-self sufficiency abandoned Grants+tax concessions given to foreign companies as incentive Industries forced to modernise factories Some survived & others didn`t embrace the change Agriculture: emphasis on grassland farming, research& development, price supports for wheat, beet and milk

European Economic Community It came into existence on January 1st 1958 Six countries France, Italy ,Germany, Belgium Luxemburg and the Netherlands agreed to permit free movement of goods and labour among themselves 1961 Britain decided to join, Ireland had to apply too as she was so dependant on Britain from an economic point of view When France vetoed Britain’s application Ireland cancelled her application

The Anglo Irish Free Trade Agreement Whitaker signed the Anglo Irish Trade Agreement this gave Ireland tariff free access to British imports Ireland agreed to reduce tariffs on British imports by 10% until they disappeared altogether in 1975 Ireland’s entry into the EEC in 1973 cut across this

Improving relations with the North Lemass on Whitaker’s advice went to visit O Neill in Northern Ireland they agreed to cooperate on economic issues

Results Aim was 2% growth-actual rate was 4% each year of programme Economy grew faster than anticipated, industry showed biggest growth Workers better off-higher wages in industry based jobs Exports rose by 35%, wiped out balance of payment problems Unemployment fell by 1/3 – emigration fell for first time in new state history-population increase in 1966 cenus-2.8 million -3 million by 1971 The government had more money available to them which allowed them to increase public expenditure. This resulted in a number of costly, though worthwhile initiatives such as the reorganisation of the health boards, the establishment of RTCs (Regional Technical Colleges), the setting up of RTE, the introduction of Child benefit for ALL children in 1963 and the introduction of free second level education in 1969. Led to Second Programme for Economic Expansion Warning signs Irish people wanted luxury goods had to be imported Lemass wanted money spent on production less well off people were suffering

Free Education A report on Education in 1965 found that 60 % of people did not go beyond primary school Secondary schools were run by the church and were fee paying Few students studied modern languages or science 1963 a new type of school a comprehensive school was set up later called a community school In 1966 O’ Malley announced that all secondary education would be free by 1969

Q&A What was the aim of the FPEE – to move from what to what (type of economy) What year was the EEC founded & how many countries were in there initially? Who vetoed Britain's application to join EEC IN 1961? Why did Ireland withdraw their application to join EEC at this time? Who did Whitaker encourage Lemass to meet and why? What year did Ireland join the EEC? Results: What was the aim for the economic growth & what was the actual % of growth? What type of workers earned better wages as a result of FPEE? What percentage did exports rise over FPEE? How much did emigration fall by as a result of FPEE? List one way in which public expenditure changed education? List another? What were the date parameters of the FPEE? Name one other thing outside of education which was set up as a result of public expenditure? What was the change in population between 1961 census and 1971?

Aims of First programme for Economic Expansion The major defining feature of the programme was a desire for change. Whitaker realised government investment and involvement was required to remedy the situation so he advocated Keynesian polices as opposed to Laissez Faire The biggest economic change was the switch from protectionist policies (i.e. Placing taxes on imports to protect domestic producers) to free market polices.

Aims of the First Programme for Economic Expansion Another plank of the new Economic Programme was foreign investment. The IDA (Industrial development authority), which had been set up in the 1950s, was tasked with attracting multinational companies to Ireland. The government encouraged foreign companies to invest here by offering sizeable tax concessions (including a famously low corporation tax) and grants to the tune of £220 million. Furthermore, Lemass removed the 1932 ‘Control of Manufacturers Act’, which required that any companies based here be at least partly Irish-owned. All these measures helped attract multinationals,.

Aims The First Programme for Economic Expansion also aimed to grow Irish businesses; at least ones that showed a willingness to adapt and compete on the open market. The government made available funds to modernise Irish farms and support local businesses. They placed a particular emphasis on export orientated companies.

To promote Irish exports to Britain (Ireland’s largest trading partner) in 1965, Lemass signed the Anglo-Irish Free Trade Area Agreement with P.M Harold McMillan, abolishing all tariffs between the two countries.