Back in the early 1990s, I was working in the Central Bank when work was under way on framing much of the Irish position on the Maastricht Treaty.
Every few weeks, an Irish representative from the Department of Finance went to Frankfurt, Brussels or Basle, to Central Bank or European Finance Committee meetings.
Together with my colleagues, we drafted the Irish submissions.
When I started working in the Central Bank, my boss kicked off my career by telling me to read the minutes of the previous few week’s European meetings, so that I could familiarise myself with the job. I noticed something odd: the Irish representative never spoke at the meeting. I put this down to the fact that maybe, that week, the Irish delegation had nothing to say.
But time and again, these minutes revealed that, no matter how detailed the briefs were that the junior and middle ranking economists gave to the representative of Ireland, the Irish representatives never took part in any of the debates.
Why was this? Was it because they were afraid to offer an opinion?
Were they afraid to stand out and explain to the Europeans that Ireland was different?
After all, we did more trade with Britain and the US than we’d ever done with Europe. We had a lot at stake and yet we didn’t speak up.
These were crucial debates on the European Monetary Union (EMU), and whether we should join the euro. At the time, the British and Danish representatives were particularly vocal, as, of course, were the French and Germans.
Periodically, the other smaller countries’ representatives would question what was going on, but never the Irish delegate.
The people who should have spoken out for Ireland never spoke, they went along with the majority.
There was – from my Memory of the minutes – no effort made to articulate an Irish perspective, no effort made to point out that Ireland had a lot more at stake from joining the EMU than any other country. It was clear at the time to most economists that this was a political, not an economic, policy, and our top civil servants went along with it, without question.
The same silence was apparent when we had a currency crisis in 1992/3. When any one of us suggested that the policy of defending the Irish punt at all costs against devaluation might be misguided, we were slapped down with the great civil service putdown, that any deviation from policy would be ‘‘unwise’’.
The official view held that any potential devaluation would be catastrophic for the Irish economy. The official view was that, if we were to devalue, Ireland would suffer permanently in capital outflows, higher interest rates and higher unemployment.
In the event, after we were forced to devalue, money flowed into, not out of, the economy. Interest rates fell, as did unemployment.
In short, everything said by the Irish economic policy-making machine, the senior civil servants at the Central Bank and the Department of Finance, was wrong.
They hadn’t a clue. And do you know what happened to most of the senior civil servants who were involved with that policy debacle?
They were promoted! That experience suggested tome that satirical British comedy Yes Minister was not too far off the mark. The role of senior civil servants in Ireland’s lamentable performance should not be overlooked in the next ten weeks.
As the current Fianna Fáil/Green administration continues with its interpretation of the final act of a Shakespearean tragedy (ie, nobody left standing in the end), it is worth taking a hard look at the civil service – otherwise know as the ‘permanent government’.
Yes Minister cast a satirical eye over the role of senior civil servants and their disdain for the politicians they served. In that series, Sir Humphrey, the fictional senior mandarin, is concerned mainly with maintaining the status quo, with the civil service kept strong and the elected government weak.
A direct comparison between the Irish civil service and the fictional Sir Humphrey is probably a bit unfair, but there are some interesting similarities between how Sir Humphrey exercised and maintained his power and how Fianna Fáil governments over the past 13 years have sought to do the same.
Sir Humphrey was a genius at getting his allies appointed to (allegedly impartial) boards and agencies in order to maintain influence over decisions that were meant to be impartial. Fianna Fáil has spent the last 14 years setting up quangos which it has stuffed with its own party faithful, and failed TDs, in order to do the same.
On March 11, the electorate can, if it wants, evict Fianna Fáil from government and choose others to run the country. We cannot, however, remove the members of the ‘permanent government’ who have risen to positions of power over the last decade and a half. These mandarins are at least as guilty as the elected administration for the catastrophic events of the last five years.
If you think this is unfair on senior civil servants, look at the arrangement revealed in January last that shielded 600 senior civil servants from the full effects of the pay cuts.
These pay cuts were levied on ordinary public service workers. While an ordinary nurse or teacher was getting a pay cut of 8 per cent, the salary of an ‘assistant secretary’ – earning €150,000 a year – was cut only by 3 per cent. For Ireland, a change of government is an absolute necessity.
But it is also necessary to change how government works. It is clear from its record over the past ten years that the Department of Finance has made mistakes.
The department, as with most others, works behind closed doors and occasionally emits projections, budgets and advice.
Without clarity on how any of those are reached, why should the people of Ireland accept those reports as fact? Every single one of its economic forecasts in the boom and the bust was wrong, so why should we believe anything it says?
Any candidates who are elected with a mandate for change will have their work cut out for them.
The top of the civil service will fight any interference with the status quo.
For them, the status quo is that they are permanent and the government elected by the people is temporary.
Fianna Fáil may well be a spent force after the coming election, but the shadow cast by its 13 years in power is long – and the various quangos, boards and ‘makey uppey’ state agencies will prove a formidable barrier to real change. But that’s the real challenge.
Real change begins, not just in the Dáil, but in the corridors of power that surround it.
David McWilliams will teach a ten week diploma, Economics without Boundaries, from February 7 at Independent Colleges
To paraphrase Jack Nicholson’s Joker in the Batman movie “This country needs an enema”.
“Who you know” rather than “What you know”
and
“Unquestioning loyalty” rather than “Objective performance”
have been the principles for preferment throughout Irish Life.
This system has infected politics, public service, the legal profession, the unions and even the church.
Unquestioning loyalty also gave the world the Nazis and Year Zero.
We need to fundamentally rethink how we operate as a society. This crisis gives us a once in a lifetime opportunity that it would be a tragedy to waste.
Was their silence then, “The good room syndrome” David?
I agree, Ireland needs to rid itself of the Top Civil / Public servants, (though servants is an oxymoron!!)and all their pals on all the boards et al!
This is a huge opportunity for us, do you think we are up for it?!?
I hope so.
David Mc Williams Is it your fear that prevents you taking your place as our representative in next Dail.?
“Any candidates who are elected with a mandate for change will have their work cut out for them.”
When Shane Ross and Joe Higgins are singing the same song its time to focus the debate on the only issue of this election Rejection or Acceptance of IMF / EU debt sentence.
JP Morgan were saying that Irelands interest rates should be dramatically reduced. They are afraid they will have to cough up money to pay up for CDS or insurance for bondholders when Ireland defaults in a couple of years.
The Dept of Finance has performed extremly poorly, I heard only a couple of phd’s there. I wonder if the people who have been making all the bobos have been replaced?
Our only hope if is Fianna Gale are a Junior partner in the next Government, otherwise they will smother Labour and do the same as Fianna Fail over time.
The ultimate result in the election which could give the country the much needed enema would be a Labour/SinnFein/Independant Government. I fear the Irish public are still too weak minded to make this bold step.
[…] This post was mentioned on Twitter by Nick McGivney, David McWilliams, ManUnderMoon , Ré Dubhthaigh, andrew moloney and others. andrew moloney said: RT @davidmcw: New on the site: Real reform goes beyond politics http://dlvr.it/Dz0dk […]
The battle is to be won or lost in the next 3 or 4 weeks,everyone on this blog is already converted,the task is now to educate,inform and cajole friends, family members and any waverers to do the right thing on polling day.
In the pub,at residents association meetings,after mass,wherever,the onus is now on contributors here to channel their knowledge and anger into electing a whole new type of political representative.
It would be an absolute shame if all David’s work just goes to perpetuate an online talking shop.
Can’t imagine FG or Labour standing up to Brussels or the mandarins in the service.Normal service continues after the election.Emigration back to the level of 1956 when 60,000 people emigrated.Same old cronies to run FF and FG.A few independents won’t make any difference.
A very good article. Thank you. Tell me more about how we can make those changes.
OK, so there are 12 comments and only one apparent real name.
WTF..??
Posters going to assume fake names means alot.
One must be xtra careful taking the comments as real.
This explosion of *fake names* is wrecking this forums credibility.
David would be a fine TD but he’d need the support of many like minded TD in order to win change. We need a DMW on every ballot paper.
Over n out, for now.
13 billion euros per annum is spent on “makey uppey” quangos. If we can get politicians who have a half a brain in their heads and real power after the election, we can start to grow by getting rid of these jobs for boys glue factories. Then of course we need real politicians who will tell these banks to get stuffed, and their bondholders of course. There are 2 simple solutions to our economy. No matter how many euros we claw back from blind old ladies and their carers we cnnot come right if we dont do those 2 simple… Read more »
David – you do not have to put your name on the ticket for Dun Laoghaire. At this stage the options on the list in DL are so dire, that it is conceivable that ordinary citizens might write your name on the ballot paper for you. In fact, I reckon you would get elected in DL without canvassing. Those of us who seen the FrontLine program on Monday 17 January can see what turkeys are available in your constituency. The country faces a great challenge. But the greatest challenge in the collection of opportunist hoors attracted to political power. In… Read more »
I have often thought this.. another good article David. I am reminded of a quote from Tony Benn which applies here.. “If you meet a powerful person–ask them five questions: “What power have you got? Where did you get it from? In whose interests do you exercise it? To whom are you accountable? And how can we get rid of you?” If you cannot get rid of the people who govern you, you do not live in a democratic system.” Never a truer word…. There’s no hope this is going to change unless we have some radical change from within… Read more »
Was watching a week in politics last night with Lenihan on it. That man makes me so angry. I’m from Blanchardstwon , the consistency Lenihan represents. My mother runs a canteen in a school in the area. It would be in fairly working class area but my Mam was saying to me yesterday that teachers in the school pay for some students to eat. That they come to school hungry and cant afford to bring lunch or buy from the canteen. My mam isn’t as expensive as say a Spar shop. While he is on TV going on how we… Read more »
Folks, The old pay packet for the little it was worth is severly down to the point where I have to consider my position and decide whether it is worth remaining in Ireland or not, it is increasingly looking doubtful that I can remain, so it may well be back to an international organisation for me. I would like to take this opportunity to say that I am not sure when I will next be able to comment as the situation has reached crisis levels. This is the reality of what this government has done to hundreds of thousands of… Read more »
Enarques – In France there is a recognised process of qualifying to become a proper Civil Servant and this is completed through the ENA ‘Ecole Nationale d’Administration ‘ – Grande Ecoles in Paris .It was founded by charles de Gaule in 1945 and is recognised and proven technique to ensure positions are obtained by ‘ republican meritocracy’ only. Some famous alumni have completed these courses and include : Dominique de Villepin Jacques Chirac Sarkozy Jean Claude Trichet ( ECB) Alain Juppe Edouard Balladur Valery Gerard d’Estaing Segolene Royal Jean Paul Proust Lionel Jospin etc The Economist John Galbraith studied this… Read more »
Time to walk the walk David – an easy act to follow but a tough role to play.
Good luck David. You might as well give it a punt as an independent, you have little to lose from doing this. I’ve come to the conclusion that personal circumstances are unlikely to change with a changing Government. The rest of the world is recovering and Ireland is in stasis. I will use my vote responsibly, I hope. I certainly won’t give it cheaply. Beyond that, I see a trip to the airport in the near future.
David & Politics
I do not think David should become a politician .He has too much to loose .He also has too much to give too .He can give in another way that does not risk his family and I am sure he will do that in good time.Shane Ross is not a spring chicken and his rope is short .
David, a pot shot which scores a direct hit on one of the main enemies of real democracy. The article scores a bulls eye.
Good stuff.
David,
Dun Laoghaire looks congested. Stand in Dublin West and take out the Master Spoofer himself. You’ll do the country a huge favour.
All 4 mainstream parties want to get the finance bill through. Which means all 4 parties want to avoid going to the country with a yes no on acceptance / rejection of the imf eu debt sentence. We will have a change of govt, fg lab will enact draconian ff policies, the people will become exasperated and vote ff in the election after this. ff know this, fg and lab are chicken. The first of them to declare that they will reject the debt sentence will win by a landslide. But they are afraid they will not get the nice… Read more »
Didn’t get the webmaster notification email for this one – subscribe.
Look who’s back!!! Josey’s back.
Fir time I’ve been able to log in and leave a comment in months.
Anyone heard of Direct Democracy??? They’re trying to register as a party for the election, they need 300 signatures.
Have a guu here:
http://www.directdemocracyireland.org/
They advocate referenda on demand, subject to petitioning a certain percentage of the population. So if enough people disagree with a bill or piece of legislation they can bring it to a public vote.
It would stop politicians lying during their campaigning and we could stop them enacting laws that are against the national interest!!!
David’s article from October 27th, 2010
His article here: http://www.davidmcwilliams.ie/2010/10/27/harnessing-diaspora-will-help-us-rebuild-economy
This newsletter today:
http://us2.campaign-archive2.com/?u=29d7977e07fcc55b8a42f0d93&id=34010f444a&e=b860e5b99f
Excellent!
Alas the glimmer of hope, or the merest possibility that things might be different under a new regime? Alas the dream has already passed! When all the main parties (with exception of Sinn Fein) are falling over one another to facilitate passing the Finance Bill. When we are hearing things like “Yeah we were against the budget and we’re still against it – but we’ll rush it through anyway!” Quite frankly it’s condescending nonsense, it all stinks and nothing has changed! The people have not or will not be listened to by many of the opposition parties. It’s FF all… Read more »
Hi David You probably have a better idea than me as to how far it’s a case of the politicians nobbling the CS and vice versa. My own impression is that the ethos in the CS is to protect the minister, but I don’t know what games they like to play at the highest levels. Re EMU and Europe in general, there was always a united front on the part of the main parties, to the extent that I always disliked them all. Again, I don’t know to what extent that’s down to serving vested interestse or to plain eagerness… Read more »
I am just sitting here trying to digest this latest newsflash. And I am trying to absorb the following.. http://www.independent.ie/national-news/labour-puts-forward-34hour-finance-bill-timetable-2508536.html Joan Burton spent forty minutes indicating that she is not happy with the Budget and the Finance Bill in the Dail in December 2010. This is at location http://www.youtube.com/watch?v=JY8AhuY8k0g and at another link on the side of the location. Trying to take all of this in…. Was the display in December 2010 an act ? or is the display now, where she tries to get the Budget/Finance Bill through the house an act ? Maybe this whole thing about being… Read more »
Ireland was Germany’s off-shore tart.
http://golemxiv-credo.blogspot.com/2011/01/ireland-was-germanys-off-shore-tart.html#comments
Lenihan on RTE evening snooze claiming that Fianna Fail has a long and honuorable tradition. Later in the same bulletin was a report on skyrocketing levels of suicide in Ireland. Totally out of kilter with reality and makes me think that FF and their gang are completely insane and/or sociopathic
http://www.irishtimes.com/newspaper/breaking/2010/0506/breaking51.html The DoF made a few mistakes. For example, budget deficit for 2008 was forecast at €1.5, but turned out to be an actual budget deficit of €13 bn… ““There’s no doubt at all that the Department of Finance, and other parts of Government and the State system and other economic agencies made mistakes . . . but that sort of notion of a deliberate, almost traitorous scheme is unfair.” Responding to a question by Jim O’ Keeffe as to whether the staff at the Department of Finance was sufficiently well-qualified to deal with the “complexity of modern finance”, Mr… Read more »
Real reform may go beyond politics but for now we are faced with voting for the same product with a different package.
We need new politicians to deliver new politics to drive change and deliver accountability. The politicians need to reinforce the fact that the civil service remains our obedient servants who carry out the will of the people under the directon of our elected representatives.
David wrote “the Irish representatives never took part in any of the debates. Why was this? Was it because they were afraid to offer an opinion?”
Maybe the real reason is that they were afraid that if they opened their mouths the representatives of the other countries would bring up the subject of Ireland’s low corporation tax. The Irish thought they if they kept a low profile they could get away with riding two horses at the one time, the EU and the multinationals. Things have changed now that Ireland is under the spotlight and is in a weak position.
I find it hard to believe this “Yes Minister” image of civil servants running rings around the government. While there must be a lot of bureaucracy that ministers have to deal with, they could get things done if they really wanted to, it’s just that running the country properly and efficiently is not a priority for the vast majority of politicians. Politicians have been under very little pressure from the voters to do that sort of real work. Instead, the deal is that they fix pot holes and get people their grants, medical cards etc. in return for their generous… Read more »
“We are absolutely against the morally bankrupt Budget and Finance Bill but will facilitate it’s quick passage!”
Equivalent to saying –
“We are absolutely against capital punishment but will help speed up the building of the gallows!”
A-a-a-a-a-g-g-g-g-h-h-h!
A-a-a-a-a-g-g-g-g-h-h-h!
A-a-a-a-a-g-g-g-g-h-h-h!
And
A-a-a-a-a-g-g-g-g-h-h-h!
Oh! and;
A-a-a-a-a-g-g-g-g-h-h-h!
EDITORIAL – TODAYS FT Brian Cowen, the prime minister, was forced into calling early elections on Thursday, to resign as party leader on Saturday, all after winning a confidence vote from his parliamentary party on Tuesday. His discredited leadership had been challenged after undisclosed meetings with Sean FitzPatrick, the banker at the heart of the financial crisis, came to light. What followed was utterly cynical…. Six members of the cabinet resigned and Mr Cowen tried to give an electoral leg-up to lesser-known Fianna Fáil MPs with scattergun offers of ministerial portfolios. This reshuffle — and eventually the government itself —… Read more »
David: The ‘Yes Minster’ scenario you present is an inadequate response to the events of the past week. We are in the midst of a crisis of Government and you seem to divert our attention to the historic role of the Civil Service. Granting all respect due to your accumulated accomplishments, what was a young whipper-snapper of high intelligence, but in 1990 presumably hot-foot from Russia, doing helping to draft Irish submissions about the Maastricht treaty? And you say that your preparation for this formidable task was to absorb the apparent absence of any written Irish contribution to the debate?… Read more »
I was looking at the Main Parties on the “Frontline”. Shiny suits and shiny faces but no substance and nothing new or fresh to offer. I think the Finance Bill is the 2011 version of the Act of Union. An earlier contributor made the point that this Finance Bill would render the Dail to the status of “Governor General” of a State within the European Empire. All the Main Parties want to sign up so they can keep the Circus running in Kildare street.The Dail will be a talking shop (if it is’nt already) with the banks and bondholders taking… Read more »
[…] You may view the full article and add your own comments at http://www.davidmcwilliams.ie/2011/01/24/real-reform-goes-beyond-politics […]
DB4545
How about Lord Chancellor my distant cousin from Norfolk once held that position in Dublin and his name was John ALLEN .Should I write to the Queen ?
Hill of Tara
Election Date is 7 days after the full moon .By then the minds of the electorate will be exausted when they vote and its unlikely there will be a landslide winner….maybe a loser but thats not the same.
We might have coalition of a coalition to form a representation.
How many coalitions does it take to boil an egg?
Bunga Bunga Politics It may seem through the crystal waters of mysticism that we could end up with a minority coalition .The number 4 pops up for the 25th .It could mean four main parties neither big enough to make a majority and neither coalition strong enough to make a government .We may have to invite Trapatoni to be Tainiste or Chairperson to induce the passion of Italian Politics .Its like who is your favourite waitress and how much can she take in tipps ( or traps). From another angle we may have too many independents that between them a… Read more »
Good article by Myers … ——————————– Alas, E-G-O is not the only trinity in Irish political life. The other is of the three Cs: cowardice, consensus and control. And it is the three Cs that define Irish politics above all else: C.1) Cowardice. No Irish politician ever dares espouse the outlandish, the bizarre or the unusual. C.2) Consensus. Irish politicians always seek the comfort of aggregates. They don’t fight lonely battles for what’s right. C.3) Control. Irish politicians love intruding upon other people’s lives, either by imposing some deranged and unreal morality on them, or by infantalising them with clientelist… Read more »
I am not a fan of this article . Blame the mandarians. It just throws the mandarians in with NAMA , the guarantee , the Euro , bankers , regulators ,Developers , builders , Fingers and the Daddy of them all ‘ Seanie ‘ I fell sorry for Seanie , what did he actually do ? Hid some loans from the auditors and drove his business bust . Did he guarantee Anglo ? ( As an aside note , look at the power that he has . He started the ball rolling on the end of Cowen by revealing a… Read more »
Bob Geldof said the best thing about Dun Laoire was the ferry terminal, how right.Noticed increasing queues outside the
Hi Everyone.
I know I am off topic but inkeeping with a post I made some time ago regarding thinking and acting positive to counter the never ending negative sh*te out there the following website has been established to put out good news stories only.
http://econ-optimist.blogspot.com/
regards,
Michael.