In 1992 Bill Clinton became President by focussing on a sign on his desk, "It's the economy, stupid". Not a bad general approach for us today but can I suggest a sign for Minister Arlene Foster's desk?
"It's the mindset, stupid" - She might even get to be First Minister!
Professor Richard Barnett's independent review of economic policy demonstrates thorough research, careful analysis, firm conclusions and clear recommendations as to how a "step-change" in policy effectiveness might be achieved towards providing a better life for people in Northern Ireland.
Initial reaction to its launch in September varied from the Belfast Telegraph's hysterical banner headline, worthy of any gutter press red-top, that Invest NI had "wasted" £1 billion of public funds, to a more muted but perhaps more worrying, "welcome" from the Irish Congress of Trade Unions.
I openly admire the efforts of Professor Barnett's team and I do agree that if their recommendations on structural changes were immediately implemented - a mighty big ask, by the way - there is a good chance we would see the hoped for step-change in policy effectiveness.
Unfortunately however, the world of international competitiveness and opportunity has changed significantly, even in the brief time since the report was commissioned.
Frankly, step-change based on structural alteration within DETI just ain't enough anymore. (as Richard Ramsey chief economist of Ulster Bank put it, rearranging the seating plan in the orchestra now that we have the sheet music)
What is needed and needed urgently is not a step-change, but a sea-change in mindset. We have the sheet music and the seating plan - now we need quality entrepreneurial players; highly motivated and with strong positive attitudes towards business establishment and business growth.
This key dimension was only alluded to tangentially in the Barnett report which concentrated on top-down policy change. Bottom-up interventional support is arguably even more important.
Arlene Foster should ask the Professor to follow up his excellent work so far and address the greater problem of how all our people can be brought, through a policy-driven process of sea-change, to a collective mindset of ambition and proud achievement.
Back to the latent ethic of pride, in hard hard work towards economic growth, that in previous generations was an acknowledged character trait of our people.
Find out more about Will at http://www.willmckee.ie/
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22 comments:
Can't argue with the sentiment here, and it's been said before. It would be good if commentators indicated how chenges could be actioned on the ground rather than merely call for them to happen. Pointing to what's wrong and needs changed is the easy bit.
Thanks for this. You are right and I am of the opinion that half-baked ideas are easy for any of us to cook up. Which is why I suggest that Prof Barnett's team get a crack at analysing and suggesting strategies for the bottom up mindset approach.
Interesting re bottom up approach. You know how many client facing people in INI, guys at the coal face with clients, were interviewed as part of the IREP? None. Would have been and would still be hugely value adding to talk to some of these people.
Sounds like somebody here has inside information! Making a good point. Hopefully if Arlene and Prof Barnett get on with a bottom up investigation these discussions will take place.
Perhaps if it was easier to join Invest NI (less forms, fewer bureaucrats) they could make a difference. An interesting equation would be number of staff divided by active clients.. The sum has been done before and it would stun you..
It has to be remembered that Invest NI has to work within considerable constraints imposed "from above" which frankly explains much of the form-filling etc to which you refer. Prof Barnett didn't shy away from suggesting that Invest should be released from much of this and given more autonomy.
Some interesting points above. A key issue though is the weak industrial structure here. We have too many of "yesterday's" industries and too few in the new emerging sectors . Given the raw material that is there to work with it's hard to see that a "freer" INI would make any meaningful difference. Given that new companies in emergent sectors will emerge from existing companies or from the universities (maybe just maybe some FDI too), then maybe Prof Barnett should have held a mirror up to University of Ulster and QUB for their relative failures in spawning new hi tech companies and for wasting millions in research into irrelevant subjects which is published in journals, many of which will never see the light if day or lead to any commercial application.
To Anonymous: do you mean less forms to join as a client or as a member of staff?
Spot on. We can blame the troubles or whatever for the decline of private sector enterprise and the coincident growth of the public sector, thus taking some of our best brains into safe non-productive support activities and weakening the entrepreneurial deal flow. This is still a factor. But universities don't make businesses. Entrepreneurs do, so there is little point in blaming unis. I do take the point on the research focus.
We've got too many "anonymice" Hard to know which question is being answered!
Squeak squeak! Norn Ireland is just a little bit too small! I'm Mouse 1 commenting on Barnett, INI , economic structure and University failings. Point taken re universities not "making" businesses but there is huge Market failure in researching commercially exploitable technology / knowledge and interacting with those who could take it to market.
Welcome little furry creature!
You have pointed out one of a number of market failures in Norn Iron. This can be number one on Prof Barnett's list for solution. Now what are the others? eg Has the "minimum wage" got any negative effects for a regional economy like NI?
The question surely us , can an academic really deliver solutions rather thxn analyse and report on a situation? I'm no fan of command economies, but perhaps an economic Tzar may be an idea to shake up and rationalise all those involved in economic development activity . There are far two many teams on the same small pitch and huge levels of duplication.
The question of a minimum wage is again interesting. Set too high and it damages competitiveness but maybe it would encourage greater substitution if labour fir capital? Not it's original intention but a possible consequence. Setting a regionalised minimum wage, maybe lower than the Uk average to take into account living standards might help competitiveness. However we have to remember it could also reduce consumer spending as folks would have a lower disposable income. Overall we need more businesses paying higher wages, partly because they need to attract the best people but also because the products and services they deliver can command premium prices. My previous post re industrial structure here laments that we have a dirth of such firms !
Jings Mousey, you are going well. It sounds to me like you are propounding a benevolent dictatorship and man I like it. Truth is we need to try radical solutions rather than rearranging the deck chairs. Too much democracy results in delay and vacillation. But Prof Barnett had a pretty good team so I wouldn't write off his approach to the top down bit. All he needs is a further remit to examine radical solutions to "bottom up"
Hmmmm University of Ulster and radical thinking??? Earth to Will, earth to Will, come in please! To use an analogy from the arts (they'd be well cut back in the new benevolent dictatorship), we may have the theatre, the script and the orchestra, but do we have the actors (the entrepreneurs and intrapreneurs) as well as the choreographers (support from INI or a reborn LEDU) to really put on a show??
So Will, you're in charge , you're the big cheese, the economic Tsar-what would be your first five actions to turn Norn Iron around ?
Well Mousey, First off I don't fancy being the "big cheese" with so many anonymice around. Methinks I might get a bit nibbled!
But seriously, I do think the issues are so serious that they deserve careful research, analysis and conclusive recommendations rather than knee-jerk diktats from Mousellini. One more time, Prof Barnett's team to focus on how the Norn Iron mindset can be changed by radical new initiatives. And I propose Mouse 1 and me as part of the team.(mind you, I kinda like the idea of being a Czar)
But Tsar Will, your top 5? Real actions that will make a real difference? As a starter, the Conservatives are I believe contemplating a form of Economic Enterprise zone status for NI. Low tax low rates and low bureaucracy. The downside is a probable acceleration in NI's block grant reduction. Suspect a few less floors of people in INI too - exacerbated by a decline in EU funding as well.
Mouse 1 you are not listening. Everybody, Will included, has their own half-baked notions but the research has to be done before coming to robust conclusions. I want to see the analysis done not from the structural perspective, but looking at the "soul" of the country. How real are people prepared to be?
As you push me, here's one: the Gov't should ruthlessly demolish the frameworks and benefits that allow this neck of the woods to have one of the largest ratios of economically inactive (I can think of other less politically correct labels) in the Western world.
Been listening avidly Will. I just wonder how much analysis paralysis we can absorb. Surely if asked as part of any such research you would have thoughts...a top 5 ?! If it's cultural and mindset change, I would need convincing , as would many more, that the Barnett panel has the bone fides to do this , let alone provide actual answers and programmes to do it . We don't need more reports with lofty conclusions but radical and ideally tested actions to take on the ground.
Your economically inactive one us a belter. A reserved power still so outside the assembly's remit and maybe just as well given it's record of fiscal stupidty. Proportionately we suffer hugely paying for the "undeserving" to suck a small fortune out of the block grant. Not to mention lost tax revenue, ingrained handout cultures and a "no work" ethic.
Dear oh, Mouse 1 is sounding grumpier than the blogmaster now !
Brilliant Mouse!
I'm taking you onto my permanent staff.
But again, I resist the temptation to trot out unresearched solutions. My next blog is going to be on the danger of unintended consequences.
Mind you, on balance you have convinced me that, while in my view Prof B did a v good job on the structural analysis, he is the wrong guy to lead the team on analysing the altogether more important mindset and soul bit.
I would chair it if Arlene asked me nicely!
To quote Edmund Burke: All that is necessary for evil to triumph is for good men to do nothing. I assume you're going to make her aware of this thread!!
And thanks for that kind offer of a post - now can you afford me..? :)
Well, modesty forbids that I should let her know! But now that you have tacitly applied to be a hired mouse, that is your first task - and indeed test - to organise the contact.
Your cheese is in the post!
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