Tánaiste's Address to the 3rd Annual Conference of the Asia Studies Ireland Association
President Dr Murphy, Professor Hong, ladies and gentlemen,
It is an honour and a pleasure to be invited here today for the
third annual conference of the Asia Studies Ireland
Association.
Since its inception in 2008, the Association has achieved so much
of its mission to promote the study, teaching and research of
topics relating to Asia, with a particular focus on the building of
Irish understanding of Asia.
I would like to acknowledge in particular the role of Dr Tom
Hardiman, Chairman of the Executive Committee of the Association,
who has contributed so much over the years to fostering all the
facets of Irish-Asia relations.
Most third level colleges in Ireland have programmes relating to
Asia, but I have to acknowledge that none comes near to the School
of Asian Studies here in Cork, led by you Professor Hong, and so
strongly supported by the University President, Dr Murphy. The
school has developed and expanded exponentially since its
establishment in 2006 and now offers a wide range of academic
programmes at undergraduate, post graduate and doctoral level.
Fostering cooperation with partners in Asia, Europe and America has
been key to your success.
Saluting you Professor Hong, President Murphy and UCC is only
fitting, but I think you will recognise it is praise indeed from a
Galway graduate like myself.
This two-day conference is under the general theme of: “Asia’s Rise
and Its Impact on Europe and Ireland: Challenges and
Opportunities”.
While most of the focus of my comments will be on our economic
relations with Asia - particularly fitting in the present
environment - I am fully aware of the need for Ireland and Asia,
and the EU and Asia, to understand each other better and deepen our
relationship on all levels.
To reach its full potential, the relationship must involve the two
regions working together on the following challenges:
To enhance global economic growth through more trade and investment
in both directions;
To increase regional and international peace and security;
To eradicate poverty;
To raise human rights and governance standards;
and,
To address major global challenges, such as sustainable
development.
Over the last three decades, the dynamism displayed by Japan, China
and the Asian economies of Singapore, Malaysia, and South Korea
earned Asia recognition as an engine of growth for the world
economy. India too, in recent years has added its
own special model of dynamism to the Asian economic success story,
as have the economies of Indonesia, the Philippines, Thailand and
Vietnam.
In 1960, Asia accounted for approximately 4% of world GNP; that
figure has advanced to more than 25% today.
Nationally our links in Asia go back a long way. Our
independence struggle was influenced by, and influenced those in
Asia. One of the first Embassies which Ireland opened outside
of Europe was in New Delhi in 1964. Yet despite these
historical links, by the 1990s, the relationship with Asia was in
need of revitalisation.
Following a visit to China, the then Taoiseach directed that an
Asia Strategy Group, drawn from the private and public sectors,
consider how to increase and enhance relations with
Asia.
The consequence was our Asia Strategy, launched in 1999. It had two
principal objectives: to improve political and business contacts
throughout Asia and to raise awareness of Ireland both as an
investment location and as a source of high quality goods and
services. The first phase of the Strategy, from 1999 to 2004,
saw merchandise trade exports from Ireland to Asia growing from
€3.6 billion in 1999 to over €6 billion in 2004.
The second phase of the Strategy, from 2005 to 2009, aimed to
establish a coherent policy of engagement on all levels. It saw the
opening of new missions in Shanghai, Singapore and Vietnam. In
tandem with the development of diplomatic contacts, our State
Agencies increased their engagement with Asia. Enterprise
Ireland now has 10 offices in Asia, while the IDA has 8. Bord
Bía and Tourism Ireland both have an increased presence on the
ground.
The second stage of the Asia Strategy set a target that total Irish
exports to eight priority countries [China, India, Indonesia,
Japan, South Korea, Malaysia, Singapore, and Vietnam] rise to
€9billion per annum by 2009. By the end of 2008, total
exports to these priority countries had already reached €11
billion.
In 1999 there were only 46 Irish companies with a presence in
Asia. Today there are more than 250.
From 1999 to 2009, Irish trade with Asian countries grew by over
300%. Asian countries now rank amongst our most important
merchandise trade partners. China is our largest trading
partner in Asia, and our 8th largest partner
globally. At the turn of the century, bilateral trade with
China was worth €715 million annually. Last year, it was €4.2
billion.
Japan is our 11th largest trade partner, with trade of
over €2.5billion. Indeed, Ireland enjoys a trade surplus with
all of the priority Asian countries.
There is also significant Foreign Direct Investment in Ireland from Asia. For example, over 40 Japanese companies have a presence here. These companies operate mainly in the Pharmaceuticals, Medical Technologies, International Financial Services and ICT sectors.
However we are still in the early stages of our FDI relationship,
and there remains great potential for growth. IDA’s
recently-established Emerging Markets Team has a target of 20% of
new Greenfield investment projects to come from high-growth and
emerging economies.
At a time when Ireland is seeking to trade its way out of
recession, this Government continues to be focussed on Asian
markets. Export industries in the Asian region identified as
having the best potential for increasing economic growth and
spurring job creation in Ireland include Energy and Green
Technologies, Food and Agriculture, Financial Services and Aviation
Leasing, Pharmaceuticals, Medical Devices and Educational
services.
Ireland’s total food and drink exports rose by 11% in 2010. As
societies in Asia become richer and their food preferences change,
there is clearly much potential for further growth in food
exports. With the removal of quotas, our milk
production is set to double by 2015. The Chinese and Indian
markets are of particular interest for the dairy
sector.
On Education services, Asia has overtaken Europe in terms of
students. There are 11,000 Asian students engaged on Irish
Higher Education programmes here in Ireland and abroad, and in 2009
China and India, represented two of our top three origins of
foreign PhD students.
With the addition of trade promotion to my portfolio as Minister,
the Department of Foreign Affairs and Trade and our Embassy network
will drive the implementation of our new strategy in close
cooperation with other relevant Departments and the State
Agencies.
The enhanced responsibilities under the banner of trade promotion
will also allow our Embassies in Asia to develop further their role
in supporting Irish business and equally importantly, in building
economic linkages between Ireland and our priority trading
partners.
When I spoke to the conference of Irish Ambassadors in Dublin last
June, I stressed that the priority of Embassies and Consulates will
be to continue to turn our network of contacts into an asset, which
can demonstrate tangible returns for the Irish economy. Under
the new arrangements, my Department has responsibility for managing
the new Export Trade Council, which I chaired yesterday. As well as
Government and Agency representatives, it has private sector
representation and draws on the experience of those involved in
growing export oriented business. A key focus of the Council is the
further deepening of trade links with the Asia-Pacific
region.
Global Irish Network
The Government can also draw on
the expertise of the members of the Global Irish Network. Its
establishment was one of the key outcomes of the Global Irish
Economic Forum in 2009. I look forward to engaging in detail with
almost 300 Network members, including from Asia, who will gather in
Dublin Castle on 7 and 8 October for the second Global Forum.
Farmleigh Fellowship
I could not address a gathering
such as this in UCC without acknowledging the tremendous
achievement of one of the most practical and innovative initiatives
to come out of the first Global Irish Economic Forum. The Farmleigh
Fellowship, established by Network members based in Singapore is
providing 23 graduates with the opportunity to gain vital
experience in Asia. The participants in this MSc programme are
developing invaluable networking experience and knowledge of the
various regions in Asia in which they are placed. When they have
completed their periods of study in UCC and Singapore, and the
practical work placements across Asia, they will be uniquely
positioned amongst young Irish professionals to take advantage of
the opportunities in Asia.
Irish economic recovery
I know there are diplomats and
other friends from Asia in the audience today. You have all
undoubtedly been following the difficulties faced by the Irish
economy since 2008. I think it would be important for me to address
some of the issues and outline our ability to rise above the
present difficulties.
There is no doubt that Ireland has faced and continues to face
serious challenges. Nevertheless, the economy returned to
growth in the first quarter of this year after three years of
contraction. Ireland’s balance of payments current account
recorded a small surplus last year, and the position is expected to
strengthen in the coming years. Ireland is already paying its
way in the world.
Ireland is meeting the quarterly targets set for it by its funding
partners in the European Union and the IMF and recent European
agreements will make it easier to continue meeting those targets as
we get the deficit down and restore order to our public
finances.
The new Government, which entered office in March with the biggest
parliamentary majority in the history of the State, is determined
to take the tough decisions needed to turn our fragile recovery
into sustainable recovery and hasten the day when we can return to
the financial markets.
Growing exports is central to our jobs strategy. We estimate
that, for every 100 jobs created in foreign owned exporting firms
in Ireland, a further 70 jobs are created elsewhere in the domestic
economy. The indirect employment associated with indigenous
firms is higher again.
Outreach to Asian countries
This Government has been
working to take the message to our partners in Asia.
Ministers Varadkar and Bruton both visited India earlier this
year. The Indian Statistics Minister was in Ireland in August
when he had extensive meetings including with my colleague Phil
Hogan and with Irish universities and business interests.
The Chairman of the Oireachtas Committee on Foreign Affairs visited
Vietnam earlier this month. Minister Cannon has just returned
from a visit to Singapore and Malaysia where he signed an important
agreement on Higher Education with the Malaysian
Government.
Also this month we were honoured with a visit from Mr. Zhang
Gaoli, a member of the Political Bureau of the Central
Committee of the Communist Party of China and Secretary of the
Tianjin Municipal Committee. And we received Mayor Guo of
Beijing, in the context of the recent twinning between Dublin and
the Chinese capital. Last year Ireland hosted Mr. Li
Changchun, a member of the Standing Committee of the Political
Bureau of the Communist Party’s Central Committee.
The Taoiseach will visit China, hopefully before the end of this
year. Discussions are ongoing on the dates and programme for his
trip. It is anticipated that he will lead a significant trade
delegation as well as meeting with the highest levels of the
Chinese leadership.
In mid October, I myself will be visiting Japan and Korea where a
central theme of my discussions will be Ireland’s strengths as a
location to do business. I will have discussions with
political leaders and meet with prospective IDA and Enterprise
Ireland clients as well as addressing business and financial
leaders.
I am particularly looking forward to speaking at the Asia Pacific
Irish Business Forum in Seoul and engaging with the network of
Irish and Asian businessmen which it represents. I attended
the last meeting of this Forum in Croke Park in June and was
impressed by the scope of contacts and cooperation which already
exists throughout Asia. I also hope to be there for the
opening of the Asian Gaelic Games – the biggest Irish sporting
event of its kind and a clear example of the depth of cooperation
and contact which this country has throughout Asia.
Economic growth in Asia has been accompanied by the development of
structures that promote cooperation and integration within the
region. One of the earliest and the most advanced of these
structures is the Association of South East Asian Nations (ASEAN)
which was founded in 1967. Its key position in the
Asia-Pacific region, its dedication to peace and stability, and its
important economic weight has made ASEAN an essential partner for
the EU – a partnership which goes back to 1980. We would hope
to develop a similarly strong relationship with SAARC the South
Asian Association for Regional Cooperation.
ASEM, the Asia-Europe Meeting, is Europe’s major channel for
communicating with Asia more broadly. It was established in
1996 to strengthen relations between the two regions through a
process of dialogue and cooperation. It meetings at
summit, ministerial and senior official levels are important and
provide opportunities for dialogue. However, I think we do need to
ensure that meetings in ASEM and with ASEAN are meaningful
encounters, which allow for real dialogue and not just a series of
set speeches.
For those outside the European Union, the variety and complexity of
our institutional networks can be confusing. The advent
of the European External Action Service will, I hope, make Europe
more understandable to our Asian friends and equally importantly
give the EU a more holistic appreciation of Asia and individual
Asian counties.
In trying to appreciate the full context of Asian history and
culture we in Europe must shake off the 20th century western
colonial stereotype of Asia as a backward place. When thinking
about the past arrogance of the West towards Asia, I am reminded of
that great retort of Gandhi when asked by a reporter what he
thought of western civilisation - he replied: “It would be a good
idea”!
Ireland, because of its own historical colonial experience, has
perhaps a more sensitive perspective on Asia. The esteem in which
our educators and medical practitioners are held in Asia is, I
believe, a testament to this. Nevertheless, I am conscious that our
Embassy and agency network in Asia plays a crucial role in ensuring
that we remain sensitive to the broader cultural environment, which
can change. Those doing business in Asia appreciate our
networks on the ground as a resource, not just to help them promote
their products but as a source of unique advice on how to navigate
respectfully in the different cultural waters which make up the
wonderful mosaic of Asia.
More broadly, Ireland takes an active role in the international
community, trying to assist in the resolution of conflicts and
disputes. Asia is no exception to this. However, we approach this
in a humble manner, recognising our own failings. I am very
conscious that a continent, which produced the Holocaust, Guernica
and the Gulag in one short century, has no monopoly on morality and
has no basis for claiming superiority. We also are painfully and
publicly aware of our own national shortcomings.
I would like to think that these failures in our own histories give
us something we can share in terms of lessons learned and errors to
avoid when confronting issues of democracy and human rights in the
continent of Asia.
However, different standards of human rights for different
countries or peoples can never be accepted – the child growing up
in Yangoon is just as much entitled to respect and human rights as
is the child growing up here in Cork. At the same time, we are
ready to work sensitively with our friends in Asia in addressing
the real needs of reform and democracy, where they arise. The
intolerable human rights situations in Burma and Sri Lanka come
immediately to mind as do the enormous challenges in bringing peace
and real stability to Afghanistan and working to end the nightmare
of the people of North Korea. I think our contribution to the
establishment of stability in Timor Leste is a testament to
Ireland’s good faith in these matters.
In the spirit of contributing further to a culture of cooperation
and conciliation in the field of human rights, Ireland has decided
to seek election to the UN Human Rights Council for the period from
2013 to 2015. This will also coincide with or Presidency of the
European Union in the first half of 2013. Should Ireland become a
member of the UN Human Rights Council, we plan to adopt a
conciliatory and cooperative role which will aim to achieve
effective solutions to human rights issues while accommodating the
views of other countries.
In the context of the broader understanding of Asia that I am glad
to see that your conference programme is not just dealing with the
economic relationship, important and all as that is, but it is also
addressing the diversity of Asia and Asian relations with Ireland
and Europe.
Broad-brush tabloid analysis often suggests an artificial
homogeneity for Asia. However, we know that it is a
continent, with diverse political and economic systems. It is
home to the world’s largest democracy, India, and also to closed
repressive regimes such as Burma/Myanmar and the Democratic
People’s Republic of Korea. It is also a region of rich
cultural diversity. It is that multi-dimensional and vibrant
Asia that you are discussing at this conference. It is that Asia
with which Ireland seeks to deepen and broaden its
relationship. I wish you well in your continuing
deliberations.
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