Analysis of Economy

During the '70's, the steambegan torun out of the 26 County Government strategy reliance on foreign multinational investment (FMN). The Industrial Development Authority (IDA) steppedup its propa— ganda campaign, spending millions of pounds,.to convince the public that foreign investment remained the heal thiest way forward for the Irish economy. Given the intensity of this propa-— ganda, itisonly natural that the trade union bureaucracy and sectionsof theLeft (especially Sinn Fein — the Workers Party) became faithful aposties of the FMN creed. Below we examine the main reasons they offer to justify their stand.

The following points summarise the arguments of the IDA andits supporters: (i) Whereas the traditional (pre— 1960) Irish industry has disinteg— rated, FMN!'snowprovide a quar— ter of jobs, over half of output and two thirds of exports in manufac— turing industry. (ii) FMN's generate a spin-off effect on the rest of the economy , Secondly, the term"'reinvest"' isamisnomer. it conjuresup the idea ofafirmusingitsprofitsto expandits plant, machinery and staff. Infact, very fewFMN!s ever reach the targets they initially promise whenreceiving IDA grants and tax concessions -never mind adding to them. "Reinvestment" inirelandhas little to do with expansion of industry. Whatit meansby and large, is financial speculation. Foreign financial institutions have been streaming intolreland to manipulate the fluctuating ex— change rates between the dollar, sterling, punt andEEC currencies. Needlessto say, the "'laundering! of tax free FMN profits provides lucrative business.

STABILITY One of the most positive aspects of FMN industry is supposedly its durability andresiliencein the face of international recess— ion. Itis claimed that the closure rate of FMN!sisnogreater than for other types of manufacturing firms and that they give added performance inrecessionary periods. The fallacious compar-—