January 11, 2006

This land is Ireland, this land is their land: The Brave New World

Posted in Celtic Tiger ·

By 2031, we are likely to have a significant black urban underclass, paying rent to a Chinese landlord class. There is also a good chance that we may have a second generation Polish Taoiseach, bankrolled by his oligarch father who arrived here broke in 2004. Irish academia will feature a disproportionate number of Indians, yet the Irish language will be stronger than at any point since before the Famine. The majority of white Irish people will be content and living in a huge – formerly agricultural – suburban belt which will bear more than a passing resemblance to Wisteria Lane of Desperate Housewives fame.
Make no mistake about it: immigration, displacement and the resulting social upheavals are the key issues facing this country. Real politics will be determined at the point where economics, demography, immigration and geography intersect.
At the moment we are witnessing a phoney war, characterised by oversensitivity, overblown rhetoric and ham indignation, the winner being he who shouts loudest or he who feigns most injury. The debate is book-ended on the Left by the �multiculturalism at all costs� brigade and on the Right by the �economic growth at all costs� warriors. In truth most of us are somewhere in the middle, seeing the need or even the desirability for new blood, yet worried about where it is leading. Equally, we recognise the logic of economic growth and the standard of living it affords us, but also appreciate that there is more to being Irish than owning the newest, top of the range Ford Galaxy.
At the moment those of us in the middle are the silent majority. This will change gradually but at the moment, the dominant rule governing the immigration debate is �do not offend anyone�. This carryon was most recently evidenced by the ridiculous and self-serving hullabaloo about Mary O Rourke speaking of �working like blacks�. A barrage of invective rained down on her from right-on liberals � all of whom knew precisely what she meant. Equally silly was the criticism that Pat Rabbitte received by growth-obsessed, free-marketers, when he suggested – logically – that some immigrants will ultimately take some Irish jobs at lower wages. While we are talking in circles, the immigrants are getting on with the practicalities of a new life – working, saving, having families, moving up and out.
The immigration debate should be about these practical aspects of day to day life and it should always be an ideology free zone. A way to consider most likely outcome is to see what has happened in other societies and then examine what the statisticians are saying about population trends. This will shed light on where people might choose to live in the New Ireland.
At the moment, Ireland has proportionately the fastest rising immigrant population in Europe. We are absorbing eight times more immigrants per head than France. It has been suggested that we need half a million new immigrants over the next ten years. However, on present trends there are likely to be considerably more. In short, by 2016 � 100 years after Pearse & Co fought for �Ireland for the Irish� – close to 15% of the Irish population could be immigrants.
But where are we all likely to live? The CSO attempted to answer this in a fascinating publication last May when it confirmed what most of us privately suspected – that Dublin between the canals will be a largely non-Irish zone by 2021. During the same period the white Irish middle classes will flee to the suburbs. We saw this pattern in the US during the 1970s and 1980s. Likewise in the UK, immigrants are over-represented in central London and thin out as you head towards the M25. This is described as the doughnut theory in the US, whereby centres of the cities are hollowed out and left to immigrants while the richer natives flee to the sanctuary of the suburbs for better schools, a perception of better safety and, frankly, to �be among their own�. This is the historic middle class reaction to immigration. They don�t riot; they trade up. The CSO predicts that by 2021, 112,000 white Dubliners will move out (10% of today�s population) to be replaced by 250,000 immigrants (25% of today�s population).
Where will the natives go? The CSO forecasts that the region with the strongest growth will be the mid-East area which includes counties Offaly, Westmeath, Laois, Kilkenny and Carlow. The population of this region will increase by 51%. These will be �Dulchies� � Dubs who have moved to live amongst the Culchies. Already, these are amongst the most fertile counties in the country and their growing populations will be bolstered by unprecedented white-flight from Dublin.
Over time, the new suburbs will become much less commuter belts and much more self-contained areas. The trends in the US suggest that we will also have �Exurbs�. These are predominantly white autonomous places with their own businesses, shopping centres, concerns and community fears. They are no longer umbilically linked to the cities but have their own life support systems. Companies move out there in search of lower rents and good workers. Moreover, the 2021 transport plan will make such mid-east �exurbs� viable. In the US these places, with their individualistic creed, voted overwhelming for George Bush. They will pose a difficulty for our parties as the new Dulchies will be apolitical in the traditional party sense. They will be single-issue people who vote for lower taxes, speed bumps and the right to drive a Renault Espace.
Dublin itself will be ethnic and young. Given the experiences of other major cities, it is not unreasonable to suggest that entire areas � spanning a wide arc from the Phoenix Park to the Docklands will be African. Rents in this part of the city will be soft as today�s white professionals are replaced by larger poorer African families. There will be a change of ownership in these places. Irish landlords are likely to sell to the emerging Chinese business class, who have proved to be adept property buyers in London and New York. In fact, the appearance of a Chinese mercantile class is one of the surest bets we can place at this stage. Linked to the booming Chinese economy, these entrepreneurs will act as go betweens for Europe consumers and Chinese producers. This phenomenon is evident in South East Asia where Chinese �migr�s dominate the business classes of Indonesia, Malaysia and Thailand and, to a lesser extent, the Philippines.
But entrepreneurship will not just be limited to the Chinese. Immigrants tend to be more entrepreneurial than the locals and they will form bonds with local business people in an unholy alliance of outsiders. Because local entrepreneurs and immigrants see themselves as outside the mainstream professions, they will make natural bedfellows. This will be one of the most fascinating marriages in the New Ireland: the immigrant and the entrepreneur. Typically, the immigrant does not meet the established middle ground of professionals, civil servants, journalists, commentators, the mainstream trade union movement and the like. He meets likeminded get up and go types. The entrepreneur employs the immigrant under the table, sees the immigrants economic value and asks no questions. The immigrant sees the entrepreneur as the antidote to the prying bureaucrat with his forms and red tape. The entrepreneur is the immigrant�s initial lifeline and ultimate role model. Both are thrown together symbiotically. Soon the immigrant network builds and instead of taking a respectable job, evidence from other countries shows that the immigrant tends to go into business quickly with the ultimate aim of independence and cash. However, this economic security leads to an urge for the outsider to be accepted at the top and so we see second generation immigrants move into politics. Perhaps the best example of this is the Kennedy clan in Boston. Joe Senior made the money which allowed JFK to enter the WASPish world of the American political elite.
As you read this, there is a Polish or Lithuanian Joe Kennedy making cash, saving, struggling, striving and, ultimately, accumulating. By the time he is rich, the ambition for his son will be to break into the establishment via politics. The same ambition that drove his father from rural Poland to Ireland in the first place will drive him up the political ladder, safe in the knowledge � unlike his Irish counterparts who are striving for votes in the apolitical new outer suburbs – that he has an ethnic bloc of voters to use as a springboard.
While all these changes are occurring of course there will be immigrants taking Irish jobs. Some working Irish families will lose significantly. This is the history of immigration and there is no point sticking our heads in the sand, pretending we face a harmonious �united colours of Benneton� future. As long as things are hurtling along, a few losers in an overall positive picture won�t pose a huge social problem, but as soon as things slow down, racial tensions will doubtlessly increase. The question for the authorities is whether they want to manage those tensions and pre-empt them before they spill over onto the streets as in France. As Napoleon said, �To govern is to choose�. As we enter a new world of the hyphenated Irishman – where tags such as Indian-Irish, Nigerian-Irish, Chinese-Irish or the vague cute sounding Polo-Irish will be in widespread use – I wonder do any of our politicians have the conviction to make such hard choices.

  1. Billy Waters

    Right on the money. Except maybe a bit lean on the
    Chinese influence on the Philippines. The Chinese
    practically own the place.

    Forbes Magazine identified the four Filipino billionaires
    as Lucio Tan, with a net worth of US$1.7 billion; Henry
    Sy, US$1.5 billion; George Ty, US$1.1 billion; and Jaime
    Augusto Zobel de Ayala and family, US$1 billion. The
    combined wealth of these Filipino billionaires amounted to
    about US$5.3 billion or almost 7 percent of the country’s
    GDP of US$75.2 billion in 2001. The first three
    billionaires were immigrants from China while Ayala was a
    scion of an aristocratic Spanish clan.

    The Sino influence on Dublin is most evident on Parnell st
    with a hidden social network of people from the same areas
    in China running the place. They even have Chinese names
    for the streets. Moore Street is Widow Street because of
    how Moore sounds like widow in Chinese. There were plans
    for a Chinatown on the Southside parallel to Grafton
    street but no agreement was reached between the (Chinese)
    social powers that be and one just naturally mushroomed on
    the northside.

    Most Chinese her are from Dalien, Shenyang or cities in
    Jilin Province. All northern Chinese from the rust belt
    in North Eastern China.

    The way they operate is identical to how the Irish operate
    (d) in New York and Boston. including protection rackets
    a la mafia. Instead of concentrating on buying assets
    that are really debts they have little access to Irish
    banks for money and turn internally to lenders and are
    keen to start a business, make a profit and get rid of the
    debt as soon as possible.

    The Chinese have a totally opposite value to money than
    the natives. Cash, not debt is king. If you see a
    Chinese driving a Mercedes you can be almost certain that
    he has bought it with cash or sold assets to buy it
    instead of going cap in had to his bank manager. Which is
    why I would question the Irish banks attitude to the
    Chinese in the first place. A narrow minded bandying of
    all foreigners together as a bad credit risk when in fact
    certain sectors are historically as an ethnic group are a
    lesser risk. The banks would have to wise up to this
    growing economic force before they wake up one morning as
    a regional offshoot to the China Construction Bank because
    the American economy fell over and we then ative Irish
    can’t pay for second and third houses in Timbuktoo and
    Antartica and defaulted on the Ferrari repayments.

    A final note. In a respected provate business school in
    Dublin 9 out of the top 10 performing students in third
    year studying Accounting and Finance are Chinese. Chinese
    girls. They may be picking up glasses in the pub or
    cleaning your office after work now but these people are
    even more determined to succeed than the debt ridden
    riding-the-crest-of-a-wave Irish.

  2. Tom Farrell

    Great to see a discussion that casts the Chinese in a light
    other than that of stacking shelves in Spar or Centra.

    For a fascinating insight into the ‘overseas’ Chinese,
    check out “The Spirit of Chinese Capitalism” (Redding, G.
    1990). The overseas Chinese (originating mostly from
    Southern China) account for a huge part of the economic
    activity across SE Asia (at least 50m Chinese in these
    economies) especially in banking, property, construction,
    mining, export/import trade and manufacturing. Business
    relationships transcend national borders – it truly is one
    single ecosystem unto itself. It is generally acknowledged
    that they run their businesses more shrewdly
    than ‘indigenous’ entepreneurs, e.g. gross return on equity
    for Philippino firms in late 80′s was 148% vs 84% for
    Chinese and Non-Chinese firms. The smarter enterprises in
    Ireland will learn learn from the Chinese with their
    Confucian work ethic, their ability to network in a global
    world and their lack of complacency.

    As a related point, this raises the interesting topic of
    how capitalism varies across regions. Quite a few academics
    agree that there are broadly 5-6 different variations, viz,
    US (shareholder value), Europe (community), China (family
    wealth), Japan (employment), Korea (state development).
    Consequently, your typical Chinese firm will not see the
    capital markets as the end goal and destination. They will
    not be slaves to short term results, rather long term
    family position. Businesses are run as a family business
    (or a closely knit inner circle of business partners)
    connected through personal ties (guanxi) and
    paternalistically run (the Confucian influence).

    So if New Ireland capitalism lands somewhere between that
    of the US and Europe, then what an intriguing dynamic we
    have ahead of us! New Ireland merchant princes driven by
    the unfettered capital markets in cohorts with long term
    thinking Confucian family empires. Dublin city….where the
    West truly meets the East!


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