Eight years ago while working for Jack Welch, the legendary chief executive of GE, we were chatting about his parents and upbringing in Salem, Massachusetts. His grandparents on both sides were from Cork and he was talking about how he loved coming ‘‘home’’ to Ireland. I asked whether his Irish ancestry might have been a factor in deciding to locate GE Capital in Ireland.
Welch – the man who single-handedly spearheaded the concept of shareholder value, and was known as Neutron Jack for firing so many people at the behemoth that was GE – got all dewy eyed. He looked and me and snapped: ‘‘Of course it bloody mattered, David,” as if I’d asked the most obvious question in the world. He continued: ‘‘Once Ireland got its act together, we were in as fast as we could.”
GE’s choices at the time were Ireland, Britain or France. ‘‘Where do you think I would put it?” he asked, and chuckled. This is the power of the diaspora. It is also the power of Ireland. If we can provide reasons for the great Irish Tribe to be involved economically here, they will come. It’s up to us towel come them back.
That was what the Global Irish Economic Forum at Dublin’s Farmleigh House this weekend was all about.
There are many reasons to be optimistic about the fusion of the emotional and commercial power of the diaspora with the realities of Irish recovery. There are two outstanding examples of countries which have economically used their diaspora to enhance the homeland, and also to give the diaspora a sense of greater belonging: the Israelis and the Indians.
Israel has built possibly the world’s finest high-tech industry by using its diaspora. In the early 1990s, the Israelis realised that, if the economy was to have a chance of surviving, it needed to start making its own technology, and keeping the intellectual capital. Up until then, they had been a bit like Ireland, happy to allow their engineers to be used by US companies to make good profits in Israel, which were then repatriated.
However, it dawned on the state that they should build their own companies. It all sounded good until they realised few Israelis had done this before. There was no template for taking an invention in Israel and commercialising it, so the invention was on the shelves for sale. They had the brains, but not the road map.
Then they realised that the people who had the know-how were their distant cousins in the US. American-Jewish entrepreneurs in the US who were American first, and Jewish second, were bringing companies in Silicon Valley to Wall Street and floating them.
So the Israelis wanted to bring them to the middle east. The vast majority of these venture capitalists were not religious Jews with a desire to live in Israel. But they did have one thing: an affinity with the country. During the middle of the Intifada, the Israeli state changed its tax laws and began to attract its American diaspora to Israel to build an industry.
Thus began the fusion of Israeli brains and American Jewish venture capitalism, which used its networks – Jewish and non-Jewish – in the US to make these companies world beaters. Now Israel is the third-biggest technological powerhouse in the world after the US and Canada. Today Israel has 4,000 high-tech companies and 100 fully-fledged venture capital companies.
The role of the Indian diaspora in creating the Indian high-tech industry follows a similar path. About 40 per cent of Silicon Valley start-ups in the past 15 years had at least one Indian founder. In the past few years, they have started to follow the Israeli lead and produce, create and locate their companies in India, learning the ropes from those who have gone before them.
We could – and, indeed – will do the same thing. Some 45 per cent of the chief executives of Fortune 500 companies worldwide have Irish surnames. The question is, how do you move from someone who is merely a St Patrick’s Day Paddy, to someone who is really involved with the country? The fact that the person is a St Patrick’s day Irishman or woman is a huge start. This is our in. This is our Jack Welch moment.
Now we need to create a twin-track strategy to maximise the opportunity given to us by our migrant history. One is based on pure self-interest, which is that we have to make it worth their while financially. The emotions of the shamrock need to be bolstered by the allure of the dollar.
Like the Israelis when they attracted the Jewish Americans, the Irish-American executives have to be able to tell investors they will make more money here than they would in the US. This is where the tax system comes in. We will make it as attractive as possible, so that we can create something out of nothing. This lights the fire.
The second is a subtler policy of cementing the bond between us and the diaspora, so that we never let this link slip again. This will take time and patience. We have to create a network whereby we make sure that the children of the diaspora come to Ireland – maybe to school or for a month in the summer, or to college.
The Israelis set up such a scheme, partly paid for by the government and partly by donations from philanthropic Jewish individuals. It brings Jewish teenagers to Israel for a few weeks, not unlike a big Gaeltacht, where teenagers from all over the world come to Israel to learn the language and experience the culture, the food, the history and generally have a laugh. This is precisely what thousands of Irish children do every year in Irish college. Bringing the diaspora children home is the same idea.
The Israelis are smart because they realise they are dealing in those most precious of commodities – memory, emotion and growing up. This teenage experience bonds the children to the country, and deracinated Jews from New Jersey become lifelong allies of the country. Thus it creates yet another resource for the country, an evergreen font of influence, networks and soft power.
This is our challenge. This present crisis is the opportunity we have to reinvent the country. Embracing the diaspora is part of the New Ireland’s foreign and industrial policy. It’s commonsense – and amazing we haven’t done it before.
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It still says ‘Converations’ (sic) at the bottom there, although you corrected it at the top.
This is a good idea until the realization dawns that all that would happen there is the “smart men” who creamed the profits off the last boom period would do the same again in the next subsequent boom. When Ireland and the Irish grow up and start acting in the best interests of the nation as well as themselves then maybe this would have a positive outcome. Given the current climate all I see happening is another run on property.
I always thought you knew rhe shot!
If Ge and Israel are to be examples of solving
the mess then I regret to say you have it all wrong.
Rather than trying ti expain to you what is happening I will do a novena!!
All the usual suspects!
All the usual crooks and Liars.
Kissane
50 Billion would go a long way towards “embracing the diaspora” … seems a much better investment than NAMA …
The current approach seems most likely to drive younger people to emigration … taking us back to the Ireland of the 1960s or 1980s …
Look not to foreign investors or Diaspora for Irelands salvation! The developers are back! The recession is over! “Treasury holdings” are leading the Parlon posse! A non bankrupt outfit Treasury Holdings ( that would be technically bankrupt if it was put into liquidation but is being NAMAD instead ) is spearheading the Celtic Tiger Revival. I feel like Alice in Wonderland.Nothing is what I perceive it to be anymore.My head is reeling.But I am happy.Deliriously happy.i knew the Developers would be part of our salvation. Fianna Fail knew it all along. Ballymun apartments/regeneration development/ redevelopment /renewal/revival or whatever- going ahead!… Read more »
David, on the one hand you write about an oligarchy running Ireland and on the other you write on re – inventing ourselves for the future. Surely it’s rather stupid for a person to re – invent and get prosperity flowing again if there are power’s at be / oligarchs as you’ve correctly highlighted standing by to either thwart, seize or wreck. Is this silly of me to think this, am i on a different planet, ‘cos i’m wondering here a child can see that if the big bad wolf is in the forest you make sure you keep safe… Read more »
Hi Wills,
David here. Thanks you for all your work here on the site. I am well aware of the contradictions in some of my logic but I also appreciate that the world is not black and white. If we want to get things done we need to do deals with all sorts of people without hopefully, compromising on the one key objective which is to do something positive.
If that makes sense! All the best and thanks again, David
DMcW, the proposal is quite rational and well presented. Let us import vigorously the intellectual capital and assets needed to rebuild Ireland, but let be exporters also. Exporters of values, beliefs and morals that the small country in the Middle East you use an example cannot imagine. For myself, I would award them pariah status and never deal with their world-beating information industries. I would say that Ireland should never associate with them. So let Ireland rebuild without embracing their military-industrial romance or funding state-sponsored terrorism. Sadly, the IT industries of that little wee country at the end of the… Read more »
Your comparisons fail to identify the substantial differences of culture and intellectual capital. The Irish are political animals who talk and get together and dream up schemes, and cooperate to take advantage of those who can’t get their act together. But when it comes to creating something from nothing through sheer intellectual application, from research and development, and testing and trials, etc. this is not the country for very many reasons. As the former Intel chief said, there were 14 reasons they came here, and now only one they are staying, the corporate tax rate. The Irish demonstrate the culture… Read more »
Masters and slaves, Barons and serfs, the old order is smashed and now everyone is out for their immediate advantage. There is no regard for the past nor the future of society, only individuals trying to get what they can, however they can with the least pain and worry. We have created too much wealth without creating equilibrium in the world. The long decline of the west, including the Anglo-American axis is inexorable, and being Irish, and anglophone, we are losing and will continue to lose to the Asians who have had practice with civilisation for thousands of years, We… Read more »
David, ultimately, ‘doing something positive’ is key. Yep. ‘Getting thing’s done’ is an interesting one though. Ireland presented our generation with the ‘getting things done’ challenge in the eighties AND we suceeded to a certain degree in making things happen and the celtic tiger wealth revolution was hijacked in ’99. The ‘celtic tiger hijack’ is now phasing itself out on the back of the credit bubble popping. And we are now back to the same ‘ring a ring a rosie’ of ‘how can we get the economy moving again panto production. Now if history has shown us anything it’s beware… Read more »
Doing deals with the devil has been the condition of the western economies for centuries. Ireland should find a way out of the relentless prostration before market forces more consistent with its cultural values, which previously were not obsessed with conpicuous consumption and status.
Hi David, I watched your 2 hour discussion on RTE’s web site and to be honest , apart from this been a platform for you to possibly get more speaking engagements considering the money this weekend will have cost I cannot see any of your ‘5 business plans’ seeing the light of day. My reasons for saying this is simple ,while the event to me seemed very much staged with your nervous laugh when politicians were mentioned , nothing will come when you consider Michael Martin thought this forum would possibly take place every two years which would then just… Read more »
Hi David, The forum that was held may have generated a lot of press but I would be surprised if it could by itself produce anything close to a significant shift. We have discussed it before and I realise the disapora are one of your “hobby horses”, but I am still of the opinion that we ARE using the diaspora, or as you correctly point out, they are using us. It will continue as long as there is some financial incentive to do so and when a US management team have to choose between any location in the EU. With… Read more »
You are convinced on this diaspora theory.I was curious to know how many property developers were in the park at the weekend.David you call them diaspora.How many of them are tax “exiles”.A certain Sir Bob was present.The man that branded us a 2nd rate country and wrote a song about it and then gave us two fingers and buggered off.Hardly a model citizen for rebuilding/rebranding.When you mentioned the Indians for one moment I thought you ment Red Indians cause we could do with a few here to fight the cowboys.David, small indigenous home grown business will relaunch this country so… Read more »
I can see considerable and obvious problems with what is being proposed. But there is also opportunity. History has also shown us that there is not a country in the world that didn’t achieve success either by trade or application of armed force or a combination of both. The colonial days of Europe are history and we’re not going to raise an army to conquer the world, so why not leverage what we can? We have no axe to grind nor bone to pick with any other nation and our cultural footprint is disproportionately large, at least in most of… Read more »
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The most naive article I have read in recent years.
David – the key is when you stated { (Welch ) continued: ‘‘Once Ireland got its act together, we were in as fast as we could.” }. Well the part that Ireland Inc, or simply Irish society must fix is the bit of getting our act together. We cannot expect these people to take us seriously when we have PNeary types running important parts of the Irish state bureacracy. PNeary and the cronyism factor drives away business and investment faster than a high tax. Even more offputting than taxation on profits is the idea of having to subsidize corrupt institutions.… Read more »
Of course the Israelis were fortunate that they did not have a shower of ‘schmucks’ lined up to embarrass the country …..Cullen, Dempsey, Martin, Coughlan, etc….
I have heard stories about Coughlan being a very effective impediment to any inward investment into the country. Coughlan will have to resign. If John McGuinness thinks he can do better, then let him in there. He might do something about the jobs crisis in the regional centres like Waterford and Limerick which are in real trouble. He could not be any worse. Basil Fawlty would do a better job than Coughlan.
I am no admirer of Ganley but he said that Article 48 of the Lisbon treaty means that from now on, the EU can quietly and quickly amend the treaties in lots of ways without the need for a treaty and therefore without triggering a referendum in Ireland. Thus it could become anti-Democratic on all sorts of issues. It is becoming obvious that we are entering a post-democratic world in which the major corporations and their banks rule the roost. Parliaments need to pay attention to voters whose jobs must be protected (the Democratic egg ). Now they realize that… Read more »
David, I latch onto your phrase: “soft power”; You are right; it does exist and will be useful – it is a question of degree. For instance, while attending the anti-NAMA protest on Saturday with wills, I met a past-pupil of mine (Incredibly intelligent, A1 in english for me and 6 other As – went on to study literature at Trinners). She asked me how the cuts were affecting my school and I told her the truth. She said: “Obviously, I am against the education cuts and NAMA, but, meeting you…… it means so much more, hits home so much… Read more »
David, this is the best article on the Diaspora so far. At least you outline very clearly that we have to get our act together and realise that there has to be something in it for our distant relatives. Certainly on that basis and the fact that we would have more opportunities for the elevator pitch. This makes solid sense. I can see how it is very easy to be negative about this concept . But I can see this country tearing itself apart at a time when it needs to be very united (across public and private sectors). Maybe… Read more »
How can a Diaspora help when a nation is over priced, over propertied, over valued,and thus the benefit of the once magical ” tax haven” factor is just over and gone and corporate USA is moving on.! Do you know every time I look for current affairs news on the few radio/TV channels that exist in Ireland (besides RTE) to give me some challenging news reports I find none. I find Beer belly Cowan being interviewed oh so politely by innocuous and courteous staff who would not know a challenging question if it hit them in the face. Why is… Read more »
Ireland’s diaspora are made up of mixed bunch of personalities like any other subset or nexus of people. Some good, some bad, some full of vim and vinegar, some sharks, some snakes in the long grass, some innovators, some charlatans, some spivs, some artists, some neighbourly, some carpetbaggers, some willing, some i’m alright jack., some heading for social welfare. some heading for college, some heading for the book of kell’s, some heading for scellig michael, some bored, some sorry, some returning to the flock, some ready to live by moral code and some looking for an easy ride and some… Read more »
wills, well said.
Well as I’m sure most of ye know that I’m a member of the Diaspora,Australia to be precise.My two daughters have both gone to Colledge in Ireland,the eldest to UCD and is now back in Perth where She Lectures at a local Colledge.Having said that My eldest did do Her Masters here in Perth. The youngest is still attending Maynooth and lives in a house there,hence My interest in House prices and Rents which I have to stump up lol.My Fathers people moved to OZ after the second world war.Some are in Melbourne,some Sydney,some Perth,still in close contact.My Wife and… Read more »
“spearheaded the concept of shareholder value” maybe he might spearhead a way to put people before shareholders interest. We don’t need anymore self-interest groups dumping their fast profit scams on ordinary people, that along with NAMA where they can dump their losses, and take off. David there is a contradiction within your idea of what is best for Ireland and the Irish people. You’re either with them or against them. You can’t stand in the middle, and choose what might be okay. Cut the cancer out first, bring the banks, and shareholders, to their knees- nationalize the banks, and start… Read more »
Water – This element is no longer present in our social order of things as we know it to be eventhough we are an island surrounded by it.Water is cohesive and binds together what we put together and holds everything together what we build together. Israel has a coded order of things known as ‘ the laws of abraham ‘ or simply being a Jew .It is an emotional bonding discipline that allows all who believe together to be successful together.That is why they are successful . Our Nation as we have hacked since The Uprising has lost its sparkle… Read more »
“Our Laws are not respected enacted or enforced , our respect between us is gone , our ideals do not exist anymore,selfish greed prevails, our concept of time is no more,cute hoorism prevails, our civil servants are uncivil and self centered,the weak are preyed upon,we are no longer spiritual neither do we have a God anymore , our churches are locked and unwelcoming and do we care ?
Our politicians are no longer Statesmen and have debased our democracy .Finally we have no Leader .”
Unhappily ,thats a good summary, John: cute hoorism prevails.
Glue- Water is a gentle element and can be abused and abuse .When all the water is gone then something more cohesive will replace it .It’s natural. Glue is fundamentally water but it has added substances that harden it .Its liken to Rigid Rules that are external to our own incorporating new concepts we have never experienced before and will be toxic to what we once were to become no more . Such concepts will incorporate a change in order of things imposed upon us from another land and system of laws .We will see these foreign arms arriving when… Read more »
I jus heard the 9 oclock news on RTE. Glowing reports about “Spring Cross” developers treasury Holdings. Describes them as an “ambitious company” (that they are) and mentions the Battersea power station (including picture of same) telling us that “it has big plans” for this structure (which it has-or had! ). Real Estate Opportunities;Treasury Holdings; (REO)- Johnny Rohan & pal Dick Barret. Paid 660million Euros for Batersea Power Station in London wastelands/docklands three years ago. Its good for grazing goats for the foreseeable future.If it were sold today it would likely take a 500 million hit and drive the company… Read more »
tim, it is truly impressive how it is the NAMA debate has remained so nullified and off the political agenda and side lined as if ‘if it happens, ah sure it will work out anyway’,,, definite case of a nation under the condition of ‘stockholm syndrome’, where the kidnapped becomes enamoured too the kidnapper and beguiled and finally spellbound. And in NAMA ‘s case its the vested interests who are the kidnappers and the kidnapped – the taxpayer, and some of the taxpayers are not in the grip of the syndrome and trying to get it across that NAMA is… Read more »
David, I really admire your ability to try and help out the same shower of governing idiots who ignored your warnings on the property bubble and their mismanagement of the economy. This shows something that those ff’ers are unable to do – do something for the COMMON good not their own. Unfortunately David you’re idea about using our overseas talent can not work – that talent will have to deal with the corrupt governance here. They will propose brilliant ideas, only to have them messed up by the slebheen, back-hander politics of this country. It would be best to ask… Read more »
Wills- we can avoid suicide for the kidnapped when you refer to the kidnapped to be the the ordinary folks.Read again the following what I wrote before and the Bible will show you the way .Love thy enemy for they do not know what hit them. Keep them with you all the time and away from the Dail and Oireachtas .In other words allow the kidnapped ( us ) become the kidnapper.: This room should refrain from ‘beneign masochism’ among ourselves Irish, even if we are to define that to embrace bankers and politicians . Rather instead , we should… Read more »
While I agree with all the criticisms voiced above (re GE “What’s good for GE is good for America” I’m rereading Gore Vidal and the Israel comparisons have been criticized here before in detail) I thought David’s coup was spectacular. While it wasn’t pleasant witnessing the likes of Denis O’Brien among others it looked like the Govt. heads had been pressganged into some kind of commie reeducation programme. Now I haven’t got the gear for watching the whole thing online, and I wouldn’t know how to work it anyway, so I may have got the wrong idea about what went… Read more »
I find this utterly naive. Most people I knew who left Ireland in recent decades did so for one of two reasons: a) they were marginalized socially or b) they were marginalized economically. And sometimes both. Like many people who stayed around but “got lucky” (i.e. found a job) later on, some will nurse a degree of anger and resentment towards an Ireland that did not fulfill their needs. Why should they now be expected and come back to “bail out” the country that uncaringly shat them into the world many years ago, without as much as a kiss goodbye?… Read more »
The award winning invesgative journalist John Pilger would seem to agree……………
“The game is over. Corporatism and a reinvigorated militarism have finally appropriated parliamentary democracy, a historic shift.”
http://www.newstatesman.com/uk-politics/2009/09/pilger-british-afghan-labour
Im very hopefull afer hearing how the weekend at Farmleigh. I can only see good things to come from it. I am trying to start my own business at the moment ( green energy) but, am afraid of my life about taking the last step. I will be hoping to raise most of the money myself. But, if someone is encouraging Irish people from abroad to invest in companies like mine, well done and keep it moving so it does not become stale!
Folks, from twitter contact, Fergus O’Rourke, an early ’70s version of NAMA; but without taxpayers’ money being robbed (and no ECB, either):
http://bankruptcyandinsolvency.blogspot.com/2009/09/evidence-for-genesis-of-rescue-culture.html
Oh Dear!
More economics for me to try and figure out, from Stephen Kinsella.
What he calls his “new model: dynamic Social Accounting Matrix.cool visualization of flows between sectors.”
http://dl.getdropbox.com/u/1768960/sam.mov
Anyone here already know what this means, or can help explain it to me, please?
I just do not see where Malcolm M’s democratic egg and undemocratic chick fits in (which for me is THE best description of what has been going on over the last few years)
Economic Loony Tunes : The current Moon Wobble began today and will peak on Monday 19th ( maybe a black monday so watch your bank stocks) so we are now living in very very interesting times .If you want to gain from it ‘go slow’. Full Moon is Oct 4th and occurs during the wobble moments ahead so this makes everything sureal and more dangerous .It is interesting that the Lisbon vote is Oct 2nd almost the eve of the full moon and that guarantees a great victory by a wide margin for the winning side .I expect our web… Read more »
In spite of our protests, we are all true on one thing…whatever about blogging, keep the day job going and the meals on the table. All this call to the streets will be blocked out becasue enough of us are still comfortable and do not want to do anything that might upset that too much. I can see a great allure in the Diaspora idea and why the Government may like it. It’s a nice story but a distracting one. Although I am all for leveraging any Pull we get. Winter is coming. Iceland’s little stay on repayments is about… Read more »
Folks, could it happen? Could the murder (yes, it is a “murder”, though a slow-burner) of Keith Barry’s grandad be the catalyst for the resurgence of people-power in this country? If Keith follows-through on his threat at the weekend on the Finucane show to call for a general “down-tools” unless the government acts to protect people in their homes (while cutting gardai and McCarthy hoping to close 50% of rural Garda stations!), on a specific day, at a certain time this week; and if the Irish people answer this call and DO it!……. … could it happen? Could the Irish… Read more »
Folks, well now, looky here:
http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/8257761.stm
Hmmmmmm………
Good article comparing California to Ireland as members of currency unions:
http://tinyurl.com/mvze7t
No good outcome for anyone.
In my view, the trouble is Ireland will be tempted by the quick fix of a sterling peg. Same old historical mistake. The UK currency is a fool’s paradise, doomed to collapse.
Folks, this might scare you, now…. but, read, anyway:
http://www.creditwritedowns.com/2009/07/depressionary-bust-in-ireland-is-echoed-in-california.html
Well, now….. Looky there, shtove, how we posted the same lik?
Serendipity, eh?