Time Magazine cover of July 12, 1963, following the State visit of US President John F. Kennedy to Ireland

Irish Economy: The US will remain very important to Ireland's economic progress but forty-eight years after the Irish hailed the election of John Fitzgerald Kennedy as the 35th US President, as a potent benefit in the early years of Ireland's economic modernisation programme, it's striking that American generated jobs remain the enduring cornerstone of Irish economic policy. The bursting of the housing bubble has made this even more obvious as Irish unemployment soars.

Political leadership is very important, a fact that is highlighted in Ireland by the lack of it. The US presidential election with a 64.1% turnout - -  the highest since 1908 - - shows that people will respond to inspired leadership and at this time of economic peril, much is expected of President-elect Barack Obama.

In history, chance is a big factor in getting good or bad leaders. Even, after being elected as America's 32nd President, in mid-February 1933, just over two-weeks before his inauguration, President-elect Franklin Delano Roosevelt was the target of an assassination attempt in Miami, Florida. Chicago's Mayor Anton Cermak who was shaking hands with Roosevelt at the time, was shot dead. In 1960, John F. Kennedy is said to have owed his election to Chicago's Mayor Richard J. Daley (the father of the current mayor) and again in Florida, President-elect Kennedy was the target of a suicide bomber. Today, Barack Obama, a resident of Chicago's Hyde Park, is faced with serious economic challenges but not as grim as those faced by the resident of New York's Hyde Park, who was faced with a collapsing banking system from coast-to-coast on March 4, 1933, when he took the oath of office.

Roosevelt's First Inaugural Address, is remembered in particular for the line: "So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance."

The man who saved American capitalism, also used words that Barack Obama could use today:"..the rulers of the exchange of mankind’s goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men.

True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish.

The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit."

There is no evidence in Ireland so far, that political leaders have the vision to "convert retreat into advance."

Senior economic advisor to President-elect Barack Obama and former US Under-Secretary of Commerce for Economic Affairs, Dr. Robert Shapiro said on Tuesday: "Ireland must wean itself from dependence on FDI," while addressing a seminar 'FDI: What's the Forecast?' hosted by UCD Business Schools.

The Department of Enterprise, Trade and Employment, which has 4 ministers, still gives primacy to public relations over credible policymaking.

There were 390 US-related jobs announced this week - - a week when the largest monthly monthly absolute increase in the Live Register - - 15,800 in October - - was also announced:Irish Live Register: 15,800 added in October to 260,300 - up 94,502 in 12-month period +60.0%; Biggest monthly leap in percentage terms since January 1975

Of the total of 390 new jobs, 170 related to a Merck project in Carlow, and were first announced last year. The other 220 jobs for a Marriott Hotel call centre in Cork over the coming 5 years, were officially termed "high quality" jobs -- whatever that means.

These jobs are welcome but there is no credible policy to follow the advice of Obama advisor  Shapiro that we should "ween" ourselves off foreign direct investment (FDI) - - see link below.

When will Minister Mary Coughlan be able to emote with terms such as "terrific," "superb," "cutting edge" and "state of the art," on announcement of significant job creation by Irish-owned firms in the exportable goods and services sectors?

We have about 6,000 full-time equivalent researchers at universities and related laboratories on the public payroll as part of the €8 billion programme, to become a world-class knowledge economy by 2013 - - The Irish Mind.

The hopes in the 1990's of developing a significant home grown high tech sector have not been realised

So given the high cost base, if the focus is on getting multnationals to power the knowledge economy, do we have the right strategy?

Food is the Irish area of strength and there is always potential for innovation.

Having neglected the tradable goods and services sector during the boom years, there are no quick solutions to promoting start-ups and developing new export markets.

It requires the appropriate policy mix including building a competitive economy.

A first important step would be to junk the blather and  be honest about the challenges.

In the past 11 years, Ireland has had two former school teachers in charge of enterprise policy and the current incumbent is a former social worker.

If the political system cannot produce an appropriate response, it's time for other stakeholders in the economy to make their voices heard.