Ireland is involved in a competitive fight with the rest of the world, for every piece of business, all day, 24/7 in every market. Unless we appreciate this, we will not create the right environment to foster companies that can design products that are good enough to sell for a profit.
Watching the World Cup made me think of how similar global economics is to sport. If you want to compete with the best, you have to aspire to be the best. The teams that progress are playing the game at an intensity rarely seen before, but it is not just about intensity and fitness levels, it’s also about creativity, guile and subtlety. It is about playing to your strengths and preventing the opposition playing to theirs.
Companies are involved in a similar struggle and so, too, are you. If you are not aspiring to be the best at what you do, a combination of technology and competition will cut you down. The same goes for companies and, ultimately, for countries, regions and cities.
Without economic profit, without being able to sell your services for a profit, the region where you live will not be able to generate the revenues to pay for the hospitals, schools and safety net people aspire to. We can’t go on like Ireland indefinitely, borrowing and thus enjoying a lifestyle that is rented not earned.
Central to this idea of sustainable prosperity for all is productivity for all. That means producing better stuff per hour worked than your competitors do. This means being innovative. It means coming up with products that are better. It implies undercutting the existing players, deploying disruptive technology which makes their products obsolete or, better still, create a demand that was not there before.
In order to do this, you need the type of people who want to take risks. You need the people who don’t want a wage, an insurance policy, who don’t necessarily think their job is good because it has a permanent pension. These type of people are not everywhere, and it is not for everyone, but without the people who want to build companies you simply have no economy.
Government can’t do this. It can foster the environment which may be conducive to these type of people but it can’t do it. Encouraging self-starters doesn’t mean anything as idiotic as suggesting there is no role for the public sector, it simply means working together.
The State is crucial. After all who created the Internet? The American military did, financed by the tax dollars of millions of ordinary people. The chief R+D agency of the US is not Silicon Valley, but it is the US government and the millions of bright American students who are educated in the state system, who drive on state roads, who breathe fresh air guaranteed by state legislation on the environment. I could go on but you get the point.
Where is this innovation and creativity happening?
It is happening in cities in what the Americans are now calling “Innovation Districts.” I have just read a very interesting paper by Bruce Katz at the Brookings Institute in the US. Katz is one of the foremost experts on how cities pick themselves up off the deck, dust themselves down and re-emerge in this new technological age stronger than ever.
I was lucky enough to hear him at the Dalkey Book Festival where he suggested that, contrary to much local opinion, a town like Dun Laoghaire could be on the cusp of a brilliant regenerative spell.
His angle on cities is this: that if we look around the world from Barcelona, Montreal, Stockholm, Pittsburgh and even Detroit, we are seeing a new type of industrial hub emerging which is in the old city districts, well connected by rail and buses, where people can live, love, work and hang out with each other, these are the districts which are thriving. Silicon Valley is not the future; it’s the past. The notion that we’ll drive out to a new suburb like Silicon Valley in the future, even if it is beside a great university, is passé.
The Americans are talking about an “anchor-plus” model of development in an innovation district. The anchor in this case is a well-recognised name such a Google or Facebook. Around these anchors, smaller companies can set up, many initially sell their services to the anchor tenant. As the large anchor employs people, there will be a market for the right sort of people and this will of itself attract more people of the same outlook. This is what Dublin’s Silicon Dock is all about. But we are in competition with other cities.
Take Detroit, for so long the dystopian landscape of Eminem’s angry rap; once the wealthiest city in the US now shorthand for decay, with some suggesting it was “a microcosm of everything that is wrong with America”.
But Detroit is moving again. For example, this city of just over four million had a GDP of $220bn (€161bn) for 2014, greater that Ireland’s total income, one year after the city declared itself bankrupt, defaulting on its municipal debts – the biggest bankruptcy in American municipal history.
Detroit is now emerging as a competitor to Dublin. Like Dublin it is host to a whole range of companies in emerging technology fields, such as life sciences, R&D, IT and advanced manufacturing. Michigan State has over 568,000 high-tech workers, including 70,000 in the auto industry. The mini-boom in Dublin’s Grand Canal Dock mirrors that of Detroit’s downtown area – home to the likes of Google, IBM, GM, GE, Verizon, JP Morgan, Bank of America and KPMG.
So, Dublin has to keep doing the right thing. This is why it needs a directly-elected mayor with executive powers to run the city. It needs someone who gets up in the morning and is thinking about the city when he or she is brushing their teeth. Without someone putting the city first, and understanding that cities drive economies not the other way around, Ireland will slip backwards again.
We are in an economic World Cup competing to be the best. We need someone pulling the strings, setting out the vision and taking responsibility. A city without a powerful mayor is like a team without a brilliant manger. Can you imagine entering the World Cup without a manager? Need I say more?
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The difference between Detroit and Dublin/Ireland is that she defaulted on debts owed to city workers who trusted the city with their old age. Had we done that on all PS pension above €20,000 until the tax base came good again we’d have solved problems far earlier.
The DSP helps unemployed only after making certain the PS pensions are paid.
Limerick City Railway District
I hope the Mayor of Limerick Metropolis reads your article and decides to Clean Up the immediate area outside the City Railway Terminal .
Currently it provides the greatest retail growth potential in the city centre and already many foreign nationals have bought themselves into this new hub having already learned this from their experiences in other countries.
There’s one big difference between Detroit and Dublin. If Detroit goes bust it defaults/declares bankruptcy. If Dublin goes bust, the tax payer will have to pay every last cent. While the EU and our own government continue to undermine capitalism, capitalism will no longer work for us. And if we get a Dublin mayor cut from the same cloth as our Irish bankers and Irish career politicians then Dublin is going to go bust very quickly and quite spectacularly.
You know what any mayor job in the capital would become, it would become a cushy number retirement home for some insider clown. We would never find the sort of change enabling innovator with vision, that the role would need, to be of any use. And don’t ask me to believe that the fact that they have to be actually elected by the people of Dublin, would save us from having a small spectrum of gombeen politicians to choose from, just look at who is running the country.
Sorry David, but what about the rest of the country?? Dublin is not Ireland, but a lot of Dubliners think it is and as far as I’m concerned that’s ‘NOT ON!!’
Ever think of running for Mayor yourself, David?? You would be a whole lot better than some of the clowns there have been up to now??
David,
I think you have a typo in the last paragraph:
You said “A city with a powerful mayor is like a team without a brilliant manger” when I think you meant “A city withOUT a powerful mayor is like a team without a brilliant manger”
A powerful mayor is a disaster, if the person with power has far more power than ability. The one thing that both Dublin and Detroit are good at producing is useless, mediocre, often corrupt, “one for everybody in the audience” “pork barrel”, PR stunt driven politicians. And that is exactly what is going to happen. A far bigger problem than the mayor issue, is the failure to build Dublin like an actual city. The biggest problem facing Dublin is not the lack of a mayor. The fact is that Dublin is an inefficient suburban sprawl more than a urban entity.… Read more »
Every time somebody makes an analogy to the world cup and Ireland’s competitiveness, I think of John Delaney and the Fluthered Association of Imbeciles…..
Is the FAI a good analogy for Ireland’s inefficiency, and incompetence in respect of authority ?
Most of the innovation of modern economies is about designing and producing overly complex rubbish produced in a stressful bullying environment which passes through consumers on the way to recycling plants and landfills.
I think professional football is a very bad model for how society and economies should work.
Professional Football is a small number people grossly overpaid to contribute almost nothing to society.
Its the broken window theory.
Just to point out that Fingal County Council voted down the proposal for a Dublin Mayor a few weeks back. The idea will not be revisited any time soon.
I think we’ve had this topic before. It boils down to effective democratic LOCAL Government. Why re-invent the wheel? The proven model that works is Switzerland. Divide the Country on a county/city basis with ELECTED county or city managers (call them mayors if you want) ACCOUNTABLE to taxpayers. Corkplasticpaddy said that the world doesn’t revolve around Dublin and that’s true. But Dublin doesn’t owe the rest of the country a living either. If Cork has an ELECTED county/city manager who’s effective at attracting inward investment and Cork prospers good luck to it and the same applies to any City/County/Region. My… Read more »
The World Cup / Economics links are to do with Management Style and The Vision Thing. Engerland are rudderless because they think that by changing the actors you get a happy ending to the play, but it’s the script itself that needs a re-write. Ditto the Celtic fringe who don’t realise “you have to be in it to win it” and seem content with being armchair generals of other team’s battles. Stars like Messi only rise to incandescent greatness from a petri dish of creativity in tactics, preparation and planning which simply isn’t there for any of the teams of… Read more »
When the central bankers are removed then get rid of the central planners.
I think having our own currency based on sound money as advocated by Mr Tony Brogan is of far far more importance than the creation of a new elected mayor of Dublin.
For the love of God david, will you please address it, or are you just playing the system and footering around the edges of it attempting to make a few cosmetic changes?
>understanding that cities drive economies not the other way around I’ve thought about it, and I’m not convinced. Pre-modern-era, people living in large groups in close proximity created a marketplace where you could probably always find a buyer for your goods or services, and therefore enabled the specialisation that is the hallmark of modern civilization. But, with modern telecommunications, that physical proximity is just not required any more. Many, many specialised jobs (including mine and David’s) could be done from anywhere with a good internet connection. I can offer my goods or services to the entire world market, and the… Read more »
Have a read of the following McWilliams you might learn something;
http://www.forbes.com/sites/nathanlewis/2013/10/10/is-a-gold-standard-good-or-bad-for-the-middle-class/
Electromagnetic Default I am in agreement with the article in general terms . I would like to ask : Is this how we define Progress ? We as a society are becoming more dependent on the WWW and Internet and the Speed it brings . Collectively we all cannot do that .What happens if the Electromagnetic System in the World Defaults .How do we react and how will it effect us . This is more likely to happen and will be the first time it will have happened when our dependency on it will be greatest .The last time it… Read more »
Our Own Mayor We all have our own mayor in our own lives and we listen to that mayor all the time .Ourselves. We get capital out of our own success through our own guarded council .Ambition . We aspire to play on world stage and win our own world cup and listen to our preferred coach. Hero . In Ireland we like to kill a hero and with blood on our hands . We have done it with Dr.Anthony O’REILLY and now Garth BROOKS . World Stage for many Irish is therefore Emigration and no matter where in the… Read more »