Rss Feed Tweeter button Facebook button Linkedin button

Skip to content

Friday, Feb 3rd 2012


Lights of the City

It’s 2pm on a Sunday afternoon and I’m standing in the Croppies’ Acre in Dublin. Down the street the SWP are holding a conference in the Ashling hotel where Wittgenstein stayed in ‘48 after he came off the train at Heuston. It’s been raining all day but there’s a break in the weather and the sun is out with a light that looks like it’s been scraped sharp with stones. At my feet is a month’s worth of leaves, languid and brown. Dublin is an Autumn city, no doubt about it. North enough to catch the light but south enough to miss the serious cold.

I snap a photo with the digital I bought for the archives where I spend my days, and head towards the exit which leads to the museum and the Luas line. There are around a hundred people in the Ashling talking about Marxism, and I’m about to join them - more to listen than to talk I venture to add, but I’ll still get to voice a point or two. Last week I was in Belfast talking about Edenmore, a working class housing estate on the northside of Dublin. Yesterday I was interviewing a 74-year old man who was a Trotskyist in London in the 1950s, and on the bookshelf next to the telly stood photos of his grandchildren, and weddings, and hugs. Tomorrow I’ll be in the National Library, and today I’m standing over the bones of croppies.


I gave up reading the news about a year ago, and save for what turns up on the blogs and gets talked about over coffee, the past is my main point of contact with the world. I am not quite Billy Pilgrim, I am still rooted in time, but I do see the past around me, its links and undulations. And it too is washed with stones.

Times they do change. In 1891 a crowd of around 5,000 stood in the Nine Acres in the Phoenix Park to hear Eleanor Marx speak in favour of better wages and shorter hours. One hundred and eighteen years later and I’m in a hotel room, listening to a group of people, no more than twenty, discuss contemporary Ireland with reference to her father. Neo-liberalism is raised, especially its influence on Irish life over the past thirty years. For me, though, there is nothing particularly ‘neo’ about what passes for social and economic policy in Ireland.

When it comes to the basic tenets of neo-liberalism, the rest of the western world is playing catch-up with Ireland. We never had the post-war social democratic welfare state to which neo-liberalism is at one level a reaction. We never had it. Instead, to simplify more than a little, there is a continuity in Irish social development, a deep structure at play, which is overlooked in the main by the Irish left in favour of transplanted conclusions from other societies and states. This is not to say that neo-liberalism has not had an influence on Irish social, political and cultural life; rather that the power blocs which neo-liberalism serves and embraces were never seriously challenged in the southern Irish state. Neo-liberalism is not a counter-force in Ireland. It is the re-labelling of an already-existing reality. The move to the right in the Western world, particularly since the 1980s, has strengthened the Right in Ireland, no doubt, but when was the Right in the southern state ever seriously under threat? When did this power bloc have to compromise its power in favour of social cohesion?

The four core elements of the Irish economy - agriculture, finance, services and industry - need to be seen in motion, and in interaction with the wider society, in order to get a sense of the type of power plays at work in the southern Irish state. It’s a complex business, no doubt, but it’s one which allows us to see Irish agriculture, for example, not as backward or underdeveloped, but as a modern capitalist venture, one with roots going back to the late seventeenth century, and reaching its modern form, so to speak, around the 1870s.

With the establishment of the Irish Free State, the concerns of the country’s grazers soon came to dominate the economic policy of the right-wing Cumann na nGaedheal government. As Paul Rouse points out in Ireland’s own soil: Government and agriculture in Ireland, 1945-65:

The leading lights of the government party and their principal supporters were drawn from the elements of society which had most to gain from preservation of the social and economic status quo… A largely conservative party advised by a thoroughly conservative administrative elite resulted in economic orthodoxy.” (p.9)

In 1924 Irish exports stood at £51.58 million. £50.59 million was comprised of trade with Britain, 86% of which was made up of agricultural, food, and drink sales. The minister for agriculture, Patrick Hogan, stated in 1924 that “national development in Ireland for our generation at least is practically synonymous with agricultural development.” However, what Hogan meant by “agriculture” was not tillage, nor even mixed-farming, but cattle and grazing. Furthermore, the maintenance of the already existing state of affairs is not development. It is exactly what it says it is: the status quo as economic policy.

Hogan’s framework was a form of trickle-down economics. According to George O’Brien, professor of economics at UCD and a personal friend of Hogan’s, the minister believed that economic policy should be directed to maximise the farmers’ income, because:

…the farmers being the most important section of the population, everything that raised their income raised the national income of the country. Prosperity amongst farmers would provide the purchasing power necessary to sustain the demand for non-agricultural goods and services, and it was useless to encourage secondary industries unless the primary industry was in a position to purchase their products. The principal aim of agricultural policy in the Free State should therefore be the maximization of the farmers’ income, and not, as in certain other countries differently situated, the provision of food for the urban population or the solution of the unemployment problem.” (George O’Brien, “Patrick Hogan: Minister for Agriculture 1922-32,” Studies 25, 1936, p.355.)

In practise, what this meant was the continuation of pre-independence “free trade” with Britain, with no tariffs or other economic stimuli which might in any way interfere with the shipping of live cattle to Britain.

In the same article, George O’Brien sums up the orthodoxy of Cumann na nGaedheal and, indeed, the economic experts of his time:

In the Free State such a conflict between the interests of the farmers and the interests of the nation is exceedingly improbable, because the farmers and their dependents constitute the great majority of the population. Any deflection of the agricultural industry from the direction which is naturally most profitable is therefore exceedingly difficult to justify. In the Free State the interests of the farmers and of the nation are, at least prima facie, identical, and the best utilization of the resources of the country is that which maximizes the prosperity of the farming classes.” (George O’Brien, “Patrick Hogan” Studies 25, 1936, p.356.)

Of course, the conclusion that all farmers are in the same economic boat is not the case, and never was the case. The rural class conflicts over grazing land and tillage which recurred periodically from 18th to 20th century show this clearly. Furthermore, the growth in dry cattle occurred at the expense of Irish dairying, which began to stagnate around 1860, even though the total cattle population continued to grow.

The Irish live cattle export interests which had developed throughout the 19th century, and had done so on the back of what was then an internal market trade with Britain - in essence a colonial relationship with the export of a raw material, in this case live cattle, which was sent to the mother country for processing - ensured that their interests continued to dominate after independence. As Mary E. Daly puts it:

“Large farmers were favoured at the expense of smallholders and increased spending on unemployment, housing, or industrial development was ruled out.”

Shortly after independence the British government announced that imperial preference would be given to Irish exports. Small farmers bred and raised cattle until these were between one and two years old, these were then sold onto grazers for fattening, who then sold them on to ranchers who finished them off for export. Those who gained from this subservient economic relationship - this agricultural production line - were able to dictate economic policy in the Irish Free State.

It’s all too common in Irish left analysis to see the industrial development of the North in contrast to the rural, ‘underdeveloped’ South. But what we see at play is two different but inter-related kinds of capitalist development, one industrial, the other agrarian. The dynamics of southern Irish industrial and finance capital need to be factored in, but even the smallest farmer in Ireland bred a couple of heads of cattle as a cash crop. The Irish left - at least since the 1960s - has never really seemed that interested in asking why that was the case, and the power blocs which were sustained by such societal relationships have been overlooked in favour of a rush to theorize Irish society in terms of uneven capitalist development.

It’s not an either/or situation. There was/is an uneven indigenous industrial capitalist development in Ireland, and the ‘third-way’ compromise of the 1950s, which saw fully developed industries transplanted onto southern Irish soil as a way of industrializing Ireland without having to build up indigenous industry through tariffs, as these would harm the agrarian export market to Britain, is one which still affects Irish society. DeValera’s attempt to encourage industrial development through tariffs in the 1930s had the quite frankly bizarre proviso that tariffs should develop non-exporting businesses.

But the absence of a strong industrial capitalist base in the Free State did not mean there wasn’t a strong capitalist base in Ireland, nor did it mean that the Irish economy wasn’t a capitalist economy. It may have had a particular form of agrarian capitalism, but nonetheless it was there, and the way it functioned, and the societal and political relationships which developed out of its economic cycle, need to be understood. That cycle was the reality. It was how the machine worked. Once we start to analyse it, we begin to see that the neo-liberalism revolution, the neo-liberal counter-attack, resonates with a certain continuity in southern Irish society. There is no real change in direction. It enhances more than it counters.

I didn’t say any of this at the SWP Marxism conference. Instead, I made a fumbled point about the use of neo-liberalism by the Irish left, and was greeted with one of those silences which makes you feel like you’re wearing slippers, smelling of piss, and carrying a bag of Guardians.

Not that I’m adverse to such attire, mind, just on that day I was suitably dressed and reasonably clean. And I don’t read newspapers any more.

I left the meeting and walked back towards the city, taking a zig-zag route across the river onto Thomas Street and ending up in the Oxfam bookshop down from City Hall. Evening had set in and it was starting to rain, but I felt like walking and so I continued on, getting as far as Phibsboro before taking a bus the rest of the way home.

I get in, turn on my laptop, and check my email. I browse around the websites, see who’s leaving comments on Cedarlounge, and start to get ready for next week’s tasks. I’m looking for something to play, a kind of coda for my rambles, and the Jubilee Allstars spring to mind. I dig out the CD and put it on while I prepare for next week’s interviews. I am tired, though, and it’s not long before I follow the McCormack brothers and Lee Casey and slumber off to sleep, with the lights of the city behind me.

 
 Jubilee Allstars - Lights of the City : Play Now | Play in Popup | Download

Discussion

We welcome and encourage lively discussion from the public about articles on Irish Left Review. You can leave a comment using the form at the bottom of the page. Please read through the existing comments before posting your own.

  1. Comment by: dara

    Nov 30th 2009 at 21:11

    Hi,
    Good article, some interesting info there on the large farmers. Currently looking at the IAOS, so the stuff about later developments are very useful. What’s the reference for the Mary Daly quote?

  2. Comment by: Conor McCabe

    Nov 30th 2009 at 21:11

    Cheers Dara, the quote comes from: Industrial development and Irish national identity 1922-1939, by Mary E. Daly (1992. I’m afraid I can’t put my finger on the page number, though.

  3. Comment by: dara

    Dec 2nd 2009 at 11:12

    Thanks Conor!

Leave a Comment

(required)

(required, will not be published)

Sins of the Father

Sins of the Father:

Tracing the Decisions

That Shaped the Irish Economy,

by Conor McCabe

from The History Press

Now Available as an e-Book.

Subscribe by Email

Enter your email address:

Delivered by FeedBurner



Irish Left Review on Facebook

Best of the Web

  • Ireland has one of the most attractive tax rates for fracking companies in the world

    Very important point made by Natural Gas Europe here (posted on Shell to Sea) about the licencing agreement around Shale Gas (Fracking) and needs to be understood in the context of the news today that Tamboran Resources initial exploration in  north Leitrim has found that they could ultimately reach 2.2 trillion cubic feet of gas, worth $55 billion at today’s prices. Meanwhile Pat Rabbitte has asked the EPA do an environmental study, but this is very, very unlikely to veer from the assessment of the European Commission consultancy study on licensing hydraulic fracturing which found that there is no need for specific new legislation governing the mining activity.

    Besides the environmental impact, the financial cost of both that gas line and the potential shale gas excavation has caused consternation. Currently, Ireland has one of the most attractive tax rates for companies in the world. Companies in Ireland are, in most cases, required to pay only 25 per cent corporation tax, a much lower rate than most other countries with possible shale gas reserves; Ireland also does not require companies to pay any royalties to the government on saleable gas. Tamboran, Lough Allen Natural Gas and Enegi may be required to pay between five and fifteen per cent over this rate, but, even at a higher rate, the gain for the government will be lower than for most other countries in comparable situations. Pundits and protestors alike say that the government is effectively giving away a valuable resource, owned by the Irish people, to outside companies, for very little in return.

    2 comments »
  • Conflict of interest is so deeply embedded in Ireland, no one seems to notice

    The cops were very swift to close down the demonstration in the NAMA building that  Unlock NAMA occupied on Saturday the 28th. They haven’t been as swift though to investigate Anglo Irish Bank. A big blow to that investigation is due, apparently, to the fact that the cop leading it went to work for Bank of Ireland. It is not unusual for people from the fraud squad to move into the private banking sector, we are told, just as we were told that it isn’t unusual for people to move from the regulators office or the Central Bank (when they were separate bodies) to the boards of private banks. Unlock NAMA revealed that the building they occupied was in a very bad state of repair. Add to that the difficulty in establishing that it was a NAMA building at all, considering that it was added to the foreclosure list incorrectly. This should open up discussion on what is happening to all the other NAMA buildings, at the very least. At the most there should be uproar about the massive stock of properties that NAMA controls the loans of which is being allowed to rot and devalue. These properties are being held on to simply to try and artificially hold the price on property and provide the means for future speculation.

    Senior garda fraud specialist retires to work for Bank of Ireland

    The senior garda detective who was in charge of the Anglo-Irish investigation for 18 months took early retirement at the end of last year and is now working with Bank of Ireland, it has emerged.

    Former detective superintendent Pat Collins, 52, was regarded as the Garda’s top expert in corporate fraud investigation. He spent much of his career in the Fraud Squad and before taking charge of the Anglo investigation he spent time on secondment with the Office of the Director of Corporate Enforcement working with its director, Paul Appleby.

    Former colleagues say his departure — on full pension after having served 30 years in the force — will be a major blow to the investigation.

    Coveney adviser’s patriotism stressed to secure special pay

    Elsewhere, Minister for Agriculture Simon Coveney is in the news for asking for a €130,000 salary for his special advisor Fergal Leamy, a former chief executive of Greencore USA. The cap as we are well aware after all the breeches of it is €92,672. Leamy didn’t last long, despite Coveney pleading that he was desperate to do the state some service he left after four months. He got an offer from an equity firm in the London that he couldn’t refuse. However, the story also reveals that Simon  Coveney’s brother, Patrick Coveney is chief executive of Greencore. Of course Greencore has a long and controversial history, which Shane Ross referred to as a template for the worst excesses of corporate Ireland, a close rival to DCC.

    No comments »
  • Can We Still Write Big Question Sorts of Books? | David Graeber

    David Graeber and the model of his ‘popular’ yet scholarly book Debt: The First 5000 Years

    So: what was to be the model for a big questions sort of book, and how to write a book that would still be scholarly, but not academic?

    This is what I came up with:

    Of all the models I considered, the most amenable turned out to be the approach adopted by Marcel Mauss. This might seem odd. especially because Mauss never actually wrote a book; he’s mainly famous for a series of essays. Yet many of these essays-not just the Gift, but his essay on the person, techniques of the body (where he coins the term “habitus”), sacrifice and magic-really have had a profound effect both on all subsequent scholarship, and, to differing degrees, political and social debates ever since. Mauss had an uncanny ability to ask the right questions-often, questions he was the first to pose, and which have become mainstays of theoretical debate ever since. His was also an appealing model because Mauss was both a serious, committed activist (he was especially active in the French cooperative movement), and a scholar of remarkable erudition. His problem-and this, I suspect, is why he never did write a proper book, despite numerous attempts-was that he was also almost unimaginably disorganized, and therefore, terrible at exposition. I suspect if alive today he would have been quickly diagnosed with severe ADD.

    1 comment »
  • Irish ‘SOPA law’ another under the radar attack on digital rights by a craven government pandering far too easily to corporate interests

    Very strong and accurate piece from Karlin Lillington in the Irish Times today, making no bones about the motivations behind the changes in copyright law that Sean Sherlock and the Irish government are trying to sneak in. It’s odd at a time when the SOPA law in the US, which is similarly motivated to the Irish law, has just been dropped.

    FOR THREE governments in a row, “short-sighted” and “sneaky” seem to have become the relevant terms in operation when bringing in controversial, high-impact legislation on digital issues.

    In the past, from the government’s perspective, this approach has worked well in shoving in poorly drafted, unscrutinised law on the controversial area of data retention, giving the Republic one of the most severe, internationally criticised, anti-business retention regimes in the world.

    This time around, the Government is trying again to use secondary legislation - a statutory instrument requiring no discussion and no debate in the Oireachtas - to (supposedly) protect intellectual property for a narrow band of hard-lobbying entertainment industries.

    For despite what the ‘hard-lobbying entertainment industries’ might say internet piracy is not killing off its profits. That assumes for a start that the amount produced is static, which given the amount of ‘content’ flooding towards us each day is absurd.

    But more importantly, there is evidence (from numerous mainstream studies and reports) that industry claims about piracy decimating revenue, jobs and creativity are vastly overstated. A careful analysis of such claims by Julian Sanchez on Ars Technica ( iti.ms/wT8l02), picked up and further discussed by Forbesiti.ms/xQJXhg), indicates piracy has actually had only a minor impact on these industries.

    The record industry in the US, for example, has about double the new releases it had a decade ago, when piracy was barely on its radar. The film industry also has more releases now than in pre-piracy days and its most pirated movies are also those that made staggering box office profits. Sanchez cites evidence that the music industry is making back profits lost to piracy through “complementary purchases” such as concert tickets. And a recent report issued by a US anti-piracy lobby group rather farcically indicates its clients are doing quite well, thank you.

    3 comments »
  • Davos dilemma | Michael Roberts

    The majority of those at Davos think that Capitalism isn’t working, but don’t feel there is a need to change anything because its working rather well for them. It’s up to those not in the 1% then to change it.

    The strategists of capital are attending their annual jamboree in the snow playground of the super-rich in Davos, Switzerland for the World Economic Forum. Many of the top 0.1% of income earners are there. And this year the main theme is whether capitalism works and is fair.

    Capitalism is in crisis - and this time the word ‘crisis’ is not hyperbole. Even the 2600 attendees at Davos recognise that. According to a survey by the financial broadcaster, Bloomberg, almost 70% of those asked believed that the capitalist system is in trouble, with 32% saying it needs “radical reworking”. Less than 20% reckoned ‘free enterprise’ is working. Most Davos 0.1 percenters are really worried that this failure of capitalism to work could lead to ’social instability’ in one form or another.

    And more than half who were asked at Davos thought that inequality of income and wealth under capitalism was damaging economic growth. But only one in five wanted any urgent action on the issue! It seems that greed triumphs over economic logic - or should we say, class interest rules

    No comments »
  • The Promissory Notes | Tom McDonnell

    Economist Tom McDonnell of TASC provides a brief primer on IBRC promissory notes, which is available on Slideshare. Click here to view it in it’s own web page.

    No comments »
  • Michael Taft talks to Doug Henwood of Left Business Observer about the Irish Economy| 7th of January

    Michael Taft talks to Doug Henwood of Behind the News in a detailed 30 minute discussion about the Irish economy which was posted on the 7th of Jan. The second half of the show is given over to a discussion with Jodi Dean about Occupy Wall Street and ‘demands’. It’s also worth reading Jodi Dean’s article on Occupy Wall Street and the Left which was published today on Critical Legal Thinking.

    MP3 Link.

    [display_podcast]

    No comments »
  • What are bankers doing inside EU summits? | Corporate Europe Observatory

    Important information here on the extent of bank lobbies influence in the resolution of the Greek debt crisis, particularly when it comes to plans which require ‘private sector involvement’.

    At the Euro Summits in July and October 20111, crucial decisions “to save the Euro” and “to save Greece” were made. It was agreed to restructure Greek debts and banks were asked to accept a ‘haircut’ to their profits to avoid a Greek default and the risk that some banks might default as a result. In Summer 2011, the press was full of stories about the informal negotiations between EU leaders and the banks about the level of private sector involvement in restructuring Greece’s debts.

    The Institute of International Finance (IIF), a lobby group established in 1983 by the biggest banks and financial institutions in the world to deal with the question of sovereign debt2, became the EU’s interlocutor on the Greek debt issue. Its proposals -described as ”offers”- received red carpet treatment.

    No comments »
  • Is Ireland really the role model for austerity? | Stephen Kinsella | Cambridge Journal of Economics

    Abstract
    This paper describes the causes and consequences of Ireland’s economic crisis in the context of the policy solution implemented to contain that crisis: protracted fiscal austerity. I describe the causes of the recent crisis in Ireland and look at the logic of austerity with a simple model. I compare the current crisis to the crisis of the 1980s, when fiscal austerity was touted as the trigger for the Celtic Tiger. I discuss the measures implemented to date in the current crisis, tracing their effects on sectors of Ireland’s macroeconomy. I show that Ireland is not the role model for austerity policies.

    =======
    The full content of the January 2012 issue of the Cambridge Journal of Economics is available free online here. It is a special issue on the theme “Austerity: Making the same mistakes again - Or is this time different?”

    Contents
    Making the same mistakes again - Or is this time different?
    Lawrence King, Michael Kitson, Sue Konzelmann, and Frank Wilkinson

    Financial crisis and global imbalances: its labour market origins and the aftermath
    Pasquale Tridico

    Dangerous interconnectedness: economists’ conflicts of interest, ideology and financial crisis
    Jessica Carrick-Hagenbarth and Gerald A. Epstein

    Commentary: Contradictions of austerity
    Alex Callinicos

    The great austerity war: what caused the US deficit crisis and who should pay to fix it?
    James Crotty

    The end of the UK’s liberal collectivist social model? The implications of the coalition government’s policy during the austerity crisis
    Damian Grimshaw and Jill Rubery

    Iceland’s rise, fall, stabilisation and beyond
    Robert H. Wade and Silla Sigurgeirsdottir

    Commentary: Dire consequences: the conservative recapture of America’s political narrative?
    David Coates

    A note on America’s 1920–21 depression as an argument for austerity
    Daniel Kuehn

    US government deficits and debt amid the great recession: what the evidence shows
    Robert Pollin

    Fiscal deficits, economic growth and government debt in the USA
    Lance Taylor, Christian R. Proaño, Laura de Carvalho, and Nelson Barbosa

    The tragedy of UK fiscal policy in the aftermath of the financial crisis
    Malcolm Sawyer

    Is Ireland really the role model for austerity?
    Stephen Kinsella

    The macroeconomic stabilisation effects of Social Security and 401(k) plans
    Teresa Ghilarducci, Joelle Saad-Lessler, and Eloy Fisher

    The basic paradigms of EU economic policy-making need to be changed
    Kazimierz Laski and Leon Podkaminer

    Building faith in a common currency: can the eurozone get beyond the Common Market logic?
    Pascal Petit

    The four fallacies of contemporary austerity policies: the lost Keynesian legacy
    Robert Boyer

    Russia: austerity and deficit reduction in historical and comparative perspective
    Vladimir Popov

    Commentary: Austerity and fraud under different structures of technology and resource abundance
    Jing Chen and James Galbraith

    No comments »
  • The Newsfakers | Patrick Cockburn

    I enjoyed this nuanced article by Patrick Cockburn about journalism, accuracy, modern media, blogging, black propaganda and the use of social media by authoritarian regimes and advanced capitalist ‘democratic’ ones too. It also reminded me of this excellent review of Net Delusion by Oliver Farry that we published a while back.

    “So technical advances have made it more difficult for governments to hide repression. But these developments have also made the work of the propagandist easier. Of course, people who run newspapers and radio and television stations are not fools. They know the dubious nature of much of the information they are conveying. The political elite in Washington and Europe was divided for and against the US invasion of Iraq, making it easier for individual journalists to dissent. But today there is an overwhelming consensus in the foreign media that the rebels are right and existing governments wrong. For institutions such as the BBC, highly unbalanced coverage becomes acceptable.

    Sadly, al-Jazeera, which has done so much to shatter state control of information in the Middle East since it was set up in 1996, has become the uncritical propaganda arm of the Libyan and Syrian rebels.”

    No comments »

Link Archives »

Authors