1 OVERVIEW OF STRUCTURAL FUNDS IN IRELAND

OUTLINE OF PRESENTATION  Structural Fund history in Ireland  The National Development Plans  Structural Fund contribution to the NDPs  Ireland’s economic performance and Structural Funds  Lessons 2

HISTORY OF STRUCTURAL FUNDS IN IRELAND  Structural Funds a well-established tool of EU regional policy  ESF (1958), EAGGF (1958), ERDF (1975), FIFG (1994), Cohesion Fund (1992)  1988 – major reform of Structural Funds at EU level  large increase in Structural Fund assistance for Ireland  3 Irish National Development Plans  , ,  Ireland has received over €17 bn in support since 1973  over 75% of support received since

IRELAND IN EU Average GDP Growth GDP per Capita€8,156€11,848 Unemployment Rate16.1%- Exports as % of GDP52.12%- Agriculture as % of the Labour Force12.8%- Source: Eurostat, Central Statistics Office (Ireland)

THE NATIONAL DEVELOPMENT PLANS PLANOPERATIONALPROGRAMMES NDP (€11.6 mn)  Industry  Agriculture and Rural Development  Tourism  Human Resources  Peripherality (Transport)  Telecommunications and Postal Services  Energy  Sanitary and Local Services NDP (€22.2 mn)  Industrial Development  Agriculture, Rural Development and Forestry  Transport  Human Resources Development  Fisheries  Tourism  Economic Infrastructure  Environmental Services  Local, Urban and Rural Development NDP (€59.7 mn)  Economic and Social Infrastructure  Employment and Human Resources Development  Productive Sector  Southern and Eastern Region  Border, Midland and Western Region 5

SHIFT IN PRIORITIES – NDP OBJECTIVES PLANOBJECTIVES NDP  prepare the economy to compete successfully in the internal market  reduce unemployment, raise productivity and increase per capita income to average EU levels  improve further the state of the public finances  accompany economic growth by a greater social dimension in our society NDP  ensure the best long-term return for the economy by increasing output, economic potential and long-term jobs  re-integrate the long-term unemployed and those at high risk of becoming so into the economic mainstream NDP  continue sustainable national economic and employment growth  consolidate and improve Ireland’s international competitiveness  foster balanced regional development  promote social inclusion 6

CHANGES IN NDP STRUCTURES  Evolution from “spending plan” to “strategy”  Fewer but larger OPs  Change in Structural Fund status – Objective 1 in Transition  Move to some regional implementation – BMW and S+E  % contribution of Structural Funds to NDPs has decreased 7

STRUCTURAL FUND CONTRIBUTION TO NDPs Structural Funds (€mn) 4,2545,9783,174 Total NDP Spend (€mn)* 11,60022,20059,700 % SF Contribution37%27%5% * includes all EU, public and private forecast expenditure 8

IRISH CONVERGENCE – SLOW COMING 9 GDP at current market prices per head of population, (PPS; EUR-15 = 100) Source: Department of Finance Ireland, & Eurostat

IRELAND’S PERFORMANCE GDP Growth (EU average) 4.3% 4.2% 5.7% (2001) 1.5% (2001) GDP per Capita (EU average) €8,156 €11,848 €27,470 €23,180 Unemployment Rate16.1%4.9% Exports as % of GDP52.1%99.8% Agriculture as % of the Labour Force12.8%6.3% Source: Eurostat, Central Statistics Office Ireland

WHAT CAUSED THE CELTIC TIGER? 11 Macro Policy Global Economy Enterprise Policy “Structural Funds” Labour Supply Infrastructure Social Partnership

LESSONS  Structural Funds have been a big “+” for Ireland  Direct impact (e.g. infrastructure, tourism) and indirect impact (e.g. enhanced planning, project management and evaluation) BUT …  A contributory factor to Irish success, not the dominant factor  More to do (without significant Structural Fund assistance) 12