REMARKS BY PRESIDENT McALEESE TO THE INSTITUTE FOR INTERNATIONAL STUDIES AND THE GRADUATE SCHOOL
REMARKS BY PRESIDENT McALEESE TO INSTITUTE FOR INTERNATIONAL STUDIES AND THE GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY
Is mór an onóir agus is mór an pléisiúir dom bheith anseo libh inniu i Stanford. Míle bhuíochas libh as an chaoin-chuireadh agus as an bhfáilte a cuireadh romham.
It is a great pleasure for me to join you here today in this great seat of learning, on my first official visit to the West Coast of America. I very much appreciate the warm welcome I have received here, and indeed everywhere I have been during my time here. It says much for the warmth and affection of the bonds which exist between our two countries. Those links were established in difficult times but remain as vibrant and important as ever in today’s world. We deeply cherish and appreciate the special place that Ireland holds in the heart of this great nation, and which has found such tangible expression in the assistance we have received in our search for lasting peace on the island of Ireland.
I come before you today as President of a nation which is experiencing an unprecedented level of growth and prosperity. Across the entire spectrum of the criteria used to judge economic success, we have good news to tell. Less than a decade ago, our GDP per capita was just 60% of the European Union average. It has now risen above the European norm, thanks to average annual growth rates of over 8% since 1993. And forecasters expect growth rates of over 5% per year to continue in the medium term. Inflation and interest rates are low, unemployment has plummeted to under 6% and there is a real buzz of confidence and optimism in the air.
These figures are remarkable. But it is important to emphasize that we could not have done it on our own. Inward investment, especially by US high tech companies, has made a massive contribution to our surging economy. Their decision to locate in Ireland has been based on a number of our key competitive advantages.
We are fortunate to possess a well-educated, highly motivated and skilled young workforce, which has been of immense advantage at a time when there is a worldwide shortage of software developers and technicians. We have short lines of communication between investors and policy-makers, with the IDA as a trusted conduit and a favourable tax regime has been put in place for foreign investors. But there is no doubt that it is our pivotal position as a gateway to the vast markets of the European Union that has enabled us to maximise our other benefits.
No country survives on foreign investment alone. Our access to the European marketplace has been of equal benefit to domestic entrepreneurs, encouraging competition, efficiency and, most of all, a dynamic self-belief in our ability to succeed. Our EU membership – and more specifically our determination to join the single european currency – required us to meet a number of strict fiscal requirements. In achieving that discipline, we put our economy into even better shape, with record budget surpluses and the capacity to invest and to meet the challenges the future will bring.
The benefits which the European Union have brought cannot be measured in purely economic terms. When we first joined the Union – then the EEC – in the early 1970’s, many people feared that we had effectively sold our soul for economic gain. These cultural Jeremiahs predicted that our very rich and distinctive Irish culture would inevitably dissolve within a Euro melting pot of larger nations.
Paradoxically, our membership of the European Union has had the very opposite effect. Never before have we been so culturally confident, never before have we taken such pride in our distinctive traditions and heritage. What those voices of doom had not understood, is that at the very heart of the European Union, is the concept of a communion of equals based on mutual respect, regardless of size. It is a model which, far from seeking to impose uniformity, respects and admires cultural diversity. That admiration gave us a new-found confidence in our heritage and culture, in our uniqueness as a people. It restored a sense of self-worth that had been drained away by our experience as a colonised nation and later, by years of emigration and economic stagnation. That confidence is evident in the energy and vibrancy of Irish culture today. But it has not been a purely cultural phenomenon. It has fed into economic and commercial self-confidence, further enhancing the cycle of success within our economy as a whole.
That virtuous circle of success in which Ireland, economically, socially and culturally now finds itself, has interesting parallels in business terms. Most successful enterprises know that their long-term success depends on the interaction of a number of factors. Key amongst these is an ethos of dealing in a fair and satisfactory way with their stakeholders - customers, shareholders, suppliers, employees and the community in which they are located. It is quite simply good for business if people feel they have been dealt with fairly and ethically. And if one follows this approach, it is a safe bet to assume that there will be repeat business, a positive approach from employees, and that a culture of trust, care and service will be created. It is a "win win" situation that benefits everybody. The key word in this context is trust.
Trust is a concept which is at the heart of the banking and commercial sectors, which underpins good business practice generally and is the basis upon which productive employer/employee relationships exist. One definition states that to be trustworthy is to be "deserving of confidence". How often have the markets reacted to the phrase "lacking in confidence" when it is applied to major businesses, governments and agencies? It is a phrase that is feared in boardrooms and Government agencies the world over.
However, if one were to apply that phrase "lacking in confidence" in another context, it could also apply to neighbourhoods and localities - both in Europe and the United States - which are described as urban black spots, blighted neighbourhoods or indeed disadvantaged areas. These are areas which are characterised by features such as poor housing, low educational thresholds, high welfare dependency, significant unemployment. All of these factors are problematic in themselves. But what is even more insidious, and more difficult to tackle, is the way they generate and sustain a sense of low self-esteem. That fundamental lack of confidence by society generally, and by the residents of these localities in particular, in themselves, their communities and their future is one of the biggest barriers to overcome if the socially excluded sectors of our society are to be more fully integrated.
This is both an ethical and an economic challenge which cannot be ignored. It is bad for business if a significant number of people are not part of the normal civic society – not just because taxation and expenditure are higher, crime rises, the supply of skilled labour is lower – but also because businesses do not exist in a vacuum outside the general social and cultural environment. This is an issue I want to address, and I consider it to be a key challenge as we approach a new millennium.
This phenomenon of social exclusion is of particular importance for both our countries, a fact that was brought home very forcefully in the conclusion of the recent UN Report on Poverty, that America and Ireland, in that order, have the highest and second highest levels of poverty among 17 western nations surveyed. The measure, of course is not one of absolute poverty, but of the disparity between the richest and poorest in our societies. But it should be of great concern that this gap is continuing to grow.
It is important that we do not complacently assume that economic success and social disparity inevitably go hand in hand. A vibrant modern economy is not necessarily a healthy one - particularly so if large sections of its citizens are experiencing exclusion and inequality.
As business people you will sometimes have had the experience of an individual not achieving his or her potential. Good employers invest in training programs to motivate and encourage such individuals, because they know that it is in their own long term interests that such employees develop their full potential.
In much the same manner, it is good for the general business environment if enterprises contribute time, resources and expertise to supporting disadvantaged areas. It is not sufficient, or efficient, to rely on Governments alone to tackle social issues. Various partners have a role to play, and the business community in particular has a perspective, an expertise and especially an economic motivation to ensure that the taxpayers' dollar is being used to good effect.
There is merit in having a society in which the concepts of democracy are instilled in the hearts of the people; where ownership of society is held, and seen to be held, by citizens and not just by the state. There is also a strategic benefit accruing to the business sector in having a vibrant democratic process that engages every citizen, so that the talents of all are fully utilised. It is important to emphasise that social inclusion is not about increasing dependency – it can and must be about promoting independence by giving individuals the support and training to stand on their own two feet. Not everyone will respond – but many are only too willing to make a fresh start if given the opportunity.
This fact has been acknowledged by the business community in many countries, in schemes which though broadly similar, adopt different strategies which reflect the culture and systems which exist in their countries.
I am thinking of initiatives such as the Foundation for the Mid South which I believe operates in the States of Arkansas, Louisiana, and Mississippi, the King Baudouin Foundation in Belgium, the Tyne and Wear Foundation in the UK, and the London Community Foundation in Canada. These initiatives, all unique to their areas of operation, engage the public and private sectors together to support targeted communities. In doing so, they instil the confidence and self belief that are the bedrock not alone of vibrant communities but of successful businesses also.
In Ireland we also have such an initiative, which is called the Foundation for Investing in Communities. This is a joint venture between Government and the corporate sector, to provide additional support, through finance and resources, to communities experiencing social exclusion and poverty. The Foundation provides an opportunity for businesses which have elected to make corporate social responsibility a part of their business practice. In a very practical way, their contributions help to promote volunteering, make community involvement a company concern and provide resources for much needed facilities and social services. I am privileged to be a patron of the Foundation, and I look forward to its continuing success.
My message today is that according as our economies grow and develop, it is vital that we strive to ensure that the benefits of that growth are more equally distributed. By working together in partnership, Government and business can achieve much in terms of creating a society in which social well-being increases side by side with economic progress and opportunity in the next millennium. The decisions we make now will determine the type of the world we pass on to the next generation. We owe it to them to make sure it is a decent one. Our aim should be a world where the resource locked inside each human being is skilfully and generously unlocked so that each is and feels part of the centre, part of the mainstream - a world where there are no margins, no marginalised - for the more there are on the margins the weaker is the centre - the more impoverished our humanity. In Ireland we now have a specially blessed generation, wealthier, better educated, more self-confident than every before. Our prayer is that they will use these precious gifts well and put them at the service of the future - not a selfish future but a profoundly better future for all our people.
Thank you. Mo mhíle buíochas libh. Guím rath oraibh san am atá le teacht.