One of the opportunities Brexit offers this country is that multinational companies, which might have invested in the UK, are now more likely to look at Ireland. If you are the boss of such a company, why would you go to the UK when you worry that your company might not be able to trade freely within the EU – and that the type of EU professionals you hope to employ might not be able to work freely in the UK?
Or imagine you are an executive in a large Asian-based multinational, say a tech company. Your boss says the company is thinking of moving an operation to Europe and, with the UK compromised, Ireland is one of the options. The company aims to employ skilled locals and to attract skilled international employees. The bosses are keen to get “buy-in” from their key executives.
An experienced executive team has to want to relocate because they will determine the move’s success or failure. The board therefore needs key, senior “decision-makers” they can trust to be in place after making such an investment.
Right now we are not at the races, even as we are exporting thousands of qualified young teachers to the likes of Dubai.
It’s easy to forget when we talk about direct foreign investment into Ireland that the decision to move is taken by real people. Hard issues like tax are important, but when it comes down to it, the decision is often swayed by much “softer” issues. And for parents, the most important “soft” issue is the education of their children.
A recent survey by HSBC of 16,000 parents from all over the world revealed that 49 per cent of parents think that funding their children’s education is more important than funding their own pensions. Thirty-two per cent say that their children’s education is the spending they are least likely to cut if they fall on straitened times, and 60 per cent would to go into debt to fund education.
Citibank has estimated that the total global value of the education business is $4,906 billion.
In short, education is a massive business opportunity for Ireland.
Unfortunately, right now we are not at the races, even as we are exporting hundreds of qualified young teachers. We should be thinking of building a global education industry to complement the other multinational industries that we host here.
Indeed, Ireland has a much greater “right” to build an education business here than we had the “right” to build an international pharmaceutical industry here.
On a recent trip to India I was surprised by how many of the Indian ruling class had been educated by Irish priests and nuns in India. When you mention Ireland to them, they automatically think of education. Education is part of the Irish global brand, particularly in Asia.
It is Asians who spend most on education. The Milken Institute in California has published research on how much the average Asian middle-class family spends on education compared with the equivalent American family. In Asia, after food comes education. Asian families spend 15 per cent of their income on extra education for their kids. In America, family spending on education comes way down the list, with only 2 per cent of income spent on education.
Armed with these facts on education and the priority parents put on education, let us go back to the investment decisions being taken by multinationals.
In large companies, experienced senior managers are the people who make these decisions. Typically, they are men and women in their 40s or early 50s, often with young or teenage children. Therefore, their decision on which country to move to will largely be dictated by how the move affects the family. How do the potential countries compare?
The parents want to know that Ireland offers a transferable school diploma for their children.
As the company deliberates the move, the board suggests that the senior people head home, chat with their families and reconvene a few weeks later.
The executive heads home and sits down with his/her husband/wife to assess the pros and cons of moving the family to Ireland. One of the first things they do is Google the schools. The parents want to know that Ireland offers a transferable school diploma for their children – and that when they leave that this education is recognised elsewhere.
Therefore, the education offering is crucial for a country aiming to attract industries, mobile capital, mobile people and enterprise.
The executives see something called the Irish Leaving Cert and ask around whether anyone has heard of this system. They scratch their heads. Can their children use this back home? Can they use it to compare standards across countries?
They search for international schools and don’t find any. They search for local schools and find they are all full and have waiting lists jammed for the next five years.
Then they discover that the Leaving Cert is one exam at the end of school. There is none of the continuous assessment that is standard in the rest of the world. The top schools resemble “exam factories” focused on a points race that acts as the sole arbiter for university entry.
There are no interviews or student personal statements explaining why the student wants to do a certain course and what they have done to prepare themselves for the chosen path of university education.
The executives wonder if this is the right system to put their kids through, particularly as no one outside Ireland has ever heard of this Leaving Cert thing. Where is the International Baccalaureate option offered in almost every other developed country in the world?
If we want to be a proper player in the globalised world, we need to offer globally recognised education not just for the kids of potential foreign executives but for Irish children too.
A private school, Nord Anglia, due to open in Leopardstown, Co Dublin, is the beginning of that process. Over time, the price of international education will fall as it becomes more popular.
Indeed, because education will be as important as tax breaks in attracting the right type of investment in the future, the State could do worse than identify, say, 10 sites around the country for international schools and start tendering for business.
Given the huge size of the education business worldwide, our strong brand in education, the facts we speak English, have good universities and have Irish teachers working all over the world, it would seem that building an international education business here is an obvious 21st-century industry.
Yet we have hardly started. You have to wonder why.
One of the opportunities Brexit offers this country is that multinational companies, which might have invested in the UK, are now more likely to look at Ireland. If you are the boss of such a company, why would you go to the UK when you worry that your company might not be able to trade freely within the EU – and that the type of EU professionals you hope to employ might not be able to work freely in the UK?read more
The wannabe Conor McGregor stares out the window from the Luas at the cut-stone walls of Grangegorman. He wears a baby-blue Adidas and Nike combo, Moncler Polo shirt (top button closed), week-old stubble, fresh skin-fade, double-swallow tattoo on the calf, and no socks. Clutching his personally engraved snooker cue, with Biggie blaring out from his chrome Beats, he is a man going places.read more
The price of third-level education has risen by 131 per cent since 2005, while the price of computer games has fallen by 63 per cent. The cost of clothes has fallen dramatically in the past decade and a half, while the cost of healthcare has risen exorbitantly. The price of furniture is much lower now than it was at the height of the boom, yet the price of childcare has gone up by 34 per cent.
These are the latest trends in prices and costs in Ireland. What is the reason for these huge disparities and what does this mean for the economy, the electorate, and the political cycle?read more
The schools are closed for the holidays and morning rush hour traffic in the suburbs has dwindled. Traffic reports herald this blessed relief. Driving kids to school, and clogging up roads, is a relatively new thing. Our household is at it too on occasion. Indeed, sometimes it’s the only way of getting them into school at all. However, the school-travel trends are marked. According to the census, in 1981, 21 per cent of primary and 8 per cent of secondary students were driven to school. By 2016, 62 per cent of primary-school kids and 41 per cent of secondary students were driven to school.read more
Last week, Dublin was ranked the top city in Ireland and the UK to live in, focusing attention on what makes a make a great city. All over the world, cities are driving economic growth. Ireland is no exception. Dublin is more dominant now than ever before.read more
If house prices are rising by 12 per cent per year yet wages are only rising by about a quarter of that rate, who is winning? Who gains and who loses from this disparity between house prices and wages?read more
Our family is not good at filling out forms. It’s just not our thing. Life would be easier if we had an enthusiastic stenographer in the tribe – someone who loves a form and a deadline – but such a creature doesn’t exist in our immediate bloodline.read more
Two weeks ago, this column looked at experiments with babies, revealing just how much humans love to be in control of their lives from a very young age. This observation might help explain, decades later, why some adults vote for the guy who appears to be in control, no matter how flawed his character.
This week, as we are heading towards Easter, formerly the pagan fertility festival represented by little rabbits, let’s stick with the baby theme.read more
David has been writing for almost 20 years and there are plenty of articles covering some of the most turbulent times in the world economy.
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