Rural Areas Benefit Least from Jobs Growth
Issued 12th February 2002
While the record growth in employment during the 1990s was shared by all regions, the gains in rural regions were much weaker than in urban areas, according to Patrick Commins of the Teagasc Rural Economy Research Centre.
Addressing the Teagasc Rural Development Conference in Tullamore, Mr Commins stated that the growth in foreign investment and internationally traded services favoured Dublin and the eastern counties. Irish enterprises showed a more balanced regional distribution but the growth in employment has been weaker', he said.
''Current industrial policy acknowledges the need to cluster related investments in a limited number of key regional centres as counter-magnets to Dublin and its surrounding counties. However the policy of balanced regional development is, of itself, no guarantee that the benefits will extend to the rural hinterland''.
''There is a lesson to be learned from tourism. Its rapid growth over the 90s, when overseas visitor numbers doubled to over 6 million, obscured the fact that there was hardly any change in the predominant share of overseas tourist revenue going to the same few locations. Dublin, Cork/Kerry, Galway and Clare/Limerick have consistently earned 70% of the rising overseas tourism revenue since 1991, with Dublin's share remaining at 30%'', he said.
Mr Commins said trends in the agri-food sector, in industrial development, internationally traded services and in tourism mean that the Irish rural economy is being increasingly implicated in a global economic environment.
''Globalisation demands competitiveness, minimal state intervention and the free movement of capital, labour and services. There are limits to what public policies can do in this context''.
''But rural enterprises can capitalise on changes in the mainstream economy. Large industries subcontract functions, such as transport and servicing. Rural enterprises can benefit from the development of niche markets, from the demand for customised products and consumer preferences for products of traceable origin and geographical identity'', he added.
He said an important feature of the development of rural enterprises is the role of 'incomers' to rural areas. These include non-natives and returning emigrants. Many seek a desirable residential environment but they bring with them employment experience, useful personal contacts, access to business networks and awareness of new market opportunities.
''Policy should seek to increase the attractiveness of living conditions in rural areas not only for the local population but for potential new residents. In this way, the promotion of rural-based enterprise can become part of an integrated approach to rural development at sub-county level'', he said.
