Dr. Anthony Soares:

I thank the committee for inviting the Centre for Cross Border Studies to this meeting. In addressing the theme of the all-island economy, the Centre for Cross Border Studies is informed by its core mission of supporting and promoting cross-Border co-operation on the island of Ireland as a means towards greater social and territorial cohesion. Greater cohesion will reduce socio-economic disparities between regions of the island, North and South, particularly where the Border may represent a challenge to developing co-ordinated strategies and implementing joint interventions aimed at areas of disadvantage and their communities.

In line with the Centre for Cross Border Studies' approach to cross-Border co-operation, the development of an all-island economy should adhere to the principles of integrated cross-Border co-operation. This entails the development of policies and interventions with effects across four pillars: the social, economic and environmental pillars and the co-operation pillar itself. Policies and interventions designed to have effects on only one of these pillars are normally unsustainable and more likely to have negative effects on the other pillars. Economic concerns, therefore, are not and cannot be divorced from other societal concerns and economic development, including the development of an all-island economy, must be placed within a wider well-being framework. In our understanding of the economy and the ways in which we look to develop it, we must view economic productivity in a holistic manner. This means regarding the public, voluntary and community sectors as economic drivers or enablers and not simply as sources of expenditure that drain the income derived from what are considered to be the primary or only producers of wealth in the economy.

If the further development of an all-island economy is to be pursued, it must become a platform for increased social and territorial cohesion rather than a mechanism to maintain or even exacerbate existing socio-economic disparities in either or both jurisdictions. If we are to achieve a genuinely effective all-island economy of benefit to all citizens, it will not be simply a matter of more intensive co-ordination between two economies but rather between several geographical areas with very different levels of economic performance and socio-economic disadvantage. While these divergences may represent a challenge to its development, perhaps an insurmountable one if existing disparities are ignored, the creation of an all-island economy could do much to redress geographical imbalances in economic performance and more general well-being.

Along with a range of stakeholders and partners that constitute the Border development corridor steering committee, the Centre for Cross Border Studies believes the establishment of a Border development corridor is an essential cornerstone of any all-island economy. The Border development corridor constitutes an invaluable opportunity to bring a strategic focus capable of revitalising the economic fortunes of the populations in the immediate region, as well as of those in the North and South of the island. Research undertaken by and on behalf of the Centre for Cross Border Studies provides an evidence base for the establishment of a Border development corridor and has informed proposals relating to the socio-economic revitalisation of the Border region. These focus on seven main themes: greater priority and urgency in advancing critical infrastructure projects, particularly roads and broadband; expansion by IDA Ireland and Invest NI of the existing foreign direct investment, FDI, base and giving more determined priority to locating new FDI in the Border region; focused support for the needs of small and medium businesses, SMEs, with export potential across the Border development corridor; strengthening the local food economy; recognising and working collectively to harness the opportunities presented by the natural, built, cultural and physical environment of the Border development corridor; advancing the region as a champion of the green economy and renewables agenda; and embracing the goodwill of the diaspora and engaging with the proposed national diaspora centre.

However, in order for there to be the required degree of co-operation between both jurisdictions to bring about a Border development corridor and an effective all-island economy, we need ambitious leadership at all levels. Such leadership and strategic thinking will need to counter arguments that potential investments will be lost if policy makers attempt to promote regions of the island, North and South, seen as underperforming economically, particularly in terms of their levels of innovation.

In the absence of the policy imperative for cross-Border co-operation that was contained within the common chapter, the establishment of an effective and regionally balanced all-island economy will depend on policy makers on both sides of the Border proactively “proofing” relevant economic strategies for opportunities for cross-Border and all-island co-operation. Leadership will then be needed to provide the necessary resource framework when such opportunities are identified in order to fully exploit their potential.

A possible and serious obstacle to the development of both a Border development corridor and an effective all-island economy is the UK’s possible exit from the European Union. It is the view of the Centre for Cross Border Studies, therefore, that leadership is also required in order to avoid the possibility of a UK exit from the European Union that would reinforce Northern Ireland’s peripherality and create more significant imbalances and obstacles in the creation of an all-island economy.