Subject Support. History. Case study: The First Programme for Economic Expansion,

Transcription

1 Subject Support History Case study: The First Programme for Economic Expansion, Developing your students ability to think critically in assessing the significance of an historical episode March, 2016 Efforts have been made to trace and acknowledge copyright holders. In cases where a copyright has been inadvertently overlooked, the copyright holders are requested to contact info@pdst.ie Note: Every effort has been made to ensure the accuracy of the historical data contained herein. Any inadvertent errors are regretted. PDST,

2 CONTENTS Page Case Study: The First Programme for Economic Expansion, Developing your students ability to think critically in assessing the significance of an historical episode. 3 The enquiry-focused approach 3 Linking your work on the case study to the National Literacy Strategy 4 Linking your work on the case study to the National Numeracy Strategy 5 An overview of the case study 6 Glossary of important terms: develop your historical literacy skills 7 Biographical notes 9 Timeline of important developments 13 The First Programme for Economic Expansion: a possible line of enquiry 14 Film clip transcript and worksheet 15 Enquiry, Stage 1: Why was the First Programme for Economic Expansion drawn up? 16 Enquiry, Stage 2: What did the government seek to do through the First Programme to bring about economic expansion? 21 Enquiry, Stage 3: What impact did the First Programme have at the time? 24 Enquiry, Stage 4: What is the historical significance of the First Programme for Economic Expansion? 30 A critical skills exercise 37 Historians views on the First Programme for Economic Expansion 41 Interrogating the historians 43 Your conclusions on the enquiry 44

3 Developing your students ability to think critically in identifying the significance of an historical episode: The First Programme for Economic Expansion, In exploring the case study, The First Programme for Economic Expansion, , students are looking at a government initiative and what it entailed. However, they are not concerned merely with what happened but also with why it happened, and what its historical significance is. In exploring issues of causation and significance with students, we have a great opportunity to develop their ability to think critically, which is one of the stated objectives of the syllabus, and an increasingly cherished aim of senior cycle education. At previous history in-service sessions, it has been argued that some of the best ways in which students critical thinking can be generated include: the use of the enquiry-focused approach the use of critical skills exercises that involve group discussion and judgementforming Both approaches are drawn on in the following exploration of the case study. The enquiry-focused approach The enquiry-focused approach involves organising a set of lessons around an enquiry question on which the teaching and learning activities are focused. It aims to give a clear focus to a series of lessons, to clarify for all concerned what the learning purposes are and to ensure that the sequence of lessons is leading to improved understanding on the part of the students. In her book, The Twentieth Century World (The Historical Association, 1997), Christine Counsell outlines the rationale behind the approach. The following is an edited extract: Choosing a sequence of interesting historical enquiries gives a clear focus to any scheme of work. This approach has a number of advantages: (i) (ii) (iii) (iv) (v) It prevents a superficial run through the content and leads pupils into deeper levels of historical understanding. It allows students to engage in real historical debate. Historians usually begin with a question. It motivates students by giving a clear focus to their work. Identifying key questions is a powerful way of sharing clarity with learners. Teachers are thus reinforcing that the whole point of a sequence of lessons or activities is to build towards some attempt at answering the question. Some teachers who use this approach will refer to such a question in every single lesson. Pupils are constantly reminded of what they are trying to do and why. Key questions can shape and limit an otherwise sprawling content. It encourages pupils to produce more substantial and significant outcomes at the end of a section of work. (pp.30-31) PDST,

4 Linking your work on the case study to the National Literacy Strategy The following quote comes from Literacy and Numeracy for Learning and Life: The National Strategy to Improve Literacy and Numeracy among Children and Young People (Department of Education and Skills, 2011, p.8) Traditionally we have thought about literacy as the skills of reading and writing; but today our understanding of literacy encompasses much more than that. Literacy includes the capacity to read, understand and critically appreciate various forms of communication including spoken language, printed text, broadcast media, and digital media. Throughout this document, when we refer to literacy we mean this broader understanding of the skill, including speaking and listening, as well as communication using not only traditional writing and print but also digital media. The student activities set down in this resource are designed to improve students capacity to read, understand and critically appreciate various forms of communication including spoken language, printed text, broadcast media, and digital media. As the literacy strategy makes clear, a key element in developing literacy is promoting students listening, talking, reading and writing skills, as well as their ability to critically assess visual images and other broadcast material. Some of the ways in which material from this booklet can be used to achieve these objectives are as follows: The worksheet on the film clip encourages students to watch and listen carefully, and it includes questions designed to develop their ability to think critically. The questions/points for discussion that follow the sources are intended to form the basis for purposeful discussion among students and educative interaction between teacher and students. As well as promoting literacy, the teaching and learning conversation which this type of interaction underlies is a key component of all strategies for promoting assessment for learning in the classroom. The enquiry approach exemplified in this resource is designed to keep the learning outcomes constantly in the forefront of students minds. This is important in all strategies to improve literacy and is a key component of strategies for assessment for learning. The critical skills exercise is a type of card sorting exercise which helps to develop students listening skills and oral skills, as well as their ability to think critically. The importance of consolidating learning through carefully-designed written tasks is fundamental to student learning. The enquiry approach exemplified here concludes with an activity for students: Your conclusions on the enquiry. Also, some of the set down for each step of the enquiry can be used as the basis for written tasks as deemed appropriate by the teacher. PDST,

5 Linking your work on the case study to the National Numeracy Strategy The following quote comes from Literacy and Numeracy for Learning and Life: The National Strategy to Improve Literacy and Numeracy among Children and Young People (Department of Education and Skills, 2011, p.8) Numeracy is not limited to the ability to use numbers, to add, subtract, multiply and divide. Numeracy encompasses the ability to use mathematical understanding and skills to solve problems and meet the demands of day-to-day living in complex social settings. To have this ability, a young person needs to be able to think and communicate quantitatively, to make sense of data, to have a spatial awareness, to understand patterns and sequences, and to recognise situations where mathematical reasoning can be applied to solve problems. Some of the resources provided and the activities set down in this booklet may be used to enable young people to think and communicate quantitatively, to make sense of data, to have a spatial awareness, to understand patterns and sequences, and to recognise situations where mathematical reasoning can be applied to solve problems. For example: Questions on the targets and achievements of the First Programme can help students to think and communicate quantitatively. Questions on the statistics relating to economic changes and what significance these variations may have can help students to make sense of data. Questions on the geographic location of places mentioned in various sources (e.g. Source 1, Secondary Source 2, Source 10, Source 12, Source 14) can help students to have a spatial awareness in respect of the matters under discussion and to develop that awareness in tandem with other subject areas such as Geography. Questions on changing patterns of emigration and employment, and how these patterns interact with each other can help students to understand patterns and sequences. Questions on data such as those in Secondary Source 1 (p.17) and Source 13 (p.28) can help students to recognise situations where mathematical reasoning can be applied to solve problems e.g. the problem of how a society and economy suffering serious economic depression can be transformed into a more hopeful and prosperous society and economy. PDST,

6 The First Programme for Economic Expansion, : an overview of the case study The First Programme for Economic Expansion, , is generally seen by historians as a significant milestone and turning point in the economic and political history of the independent Irish state. It marked a departure from the reliance on protective tariffs that had characterised Irish economic policy under the governments led by Eamon de Valera and, to a somewhat lesser extent, his predecessor as head of government, W.T. Cosgrave. The two leaders most identifed with the programme are T.K. Whitaker on whose report, Economic Development, the programme was based and Seán Lemass who became Taoiseach in 1959 and gave his enthusiastic support to the new programme. T.K. Whitaker was Secretary of the Department of Finance when he wrote the report, Economic Development, in He had been appointed to that position in 1956 by Gerard Sweetman, Minister for Finance in the coalition. Sweetman was also responsible for Ireland s application to join the IMF (International Monetary Fund) and the World Bank and, at home, the establishment of the Capital Investment Advisory Committee. The change in policy which he initiated survived his government s loss of power in 1957 and came to be associated, above all politicians, with Seán Lemass, the Fianna Fáil Tánaiste and Minister for Industry and Commerce who became Taoiseach in June 1959 following de Valera s retirement. Even before he became Taoiseach, Lemass had chaired the cabinet committee which drafted the First Programme for Economic Expansion and had introduced the programme to the Fianna Fáil ard-fheis in The First Programme was essentially a five-year plan; the word programme was preferred because five-year plans were associated with communism and with Stalin s Soviet Union in particular. Identifying grassland as Ireland s greatest natural resource (comprising over 85% of her agricultural land), it sought to increase livestock numbers and boost production of milk and dairy products. However, the greatest policy shift set out in the document was towards free trade and away from protectionism. In Economic Development Whitaker had argued, Sooner or later, protection will have to go and the challenge of free trade be accepted. In December 1959 Lemass told the Dáil, the world trend is towards freer trade and we must not blink our eyes to it. In 1960 the government decided to become a party to GATT (the General Agreement on Tariffs and Trade). Tariff barriers were gradually dismantled and, in 1965, the Anglo-Irish Free Trade Area Agreement was signed with Britain. In 1961 Ireland and Britain applied to join the Common Market, but the Irish application was withdrawn when the French vetoed British entry in Britain was still the dominant market for exports from Ireland. In industry, the programme aimed to bring about a large increase in investment in private industry through tax concessions and other measures such as the promotion of exports. The cost of these measures was substantial, but the Programme argued that risks needed to be taken if future growth and prosperity were to be achieved. The Programme was well-timed to take advantage of an upswing in world economic activity following the post-war economic depression. During the period of the First Programme, national income grew by 4%. The increasing prosperity was brought about by an increase in agricultural output (9% during the 1960s) and in manufacturing industry, where the value of ouput rose by 82% in the period The value of exports in 1960 was the highest for thirty years. Unemployment fell as employment prospects improved. Another indication of a growth in prosperity was the growth in population. The 1966 census showed an increase of 62,411, the first increase recorded since the Great Famine of the 1840s. Two further programmes followed, in 1963 and 1973, after which the oil crisis of 1973 saw the beginning of a period of economic depression. PDST,

7 Glossary of important terms: develop your historical literacy skills Anglo-Irish Free Trade Area Agreement, 1965 After a long period when trade with Britain was regulated by quotas and tariffs, this agreement gave Irish industry tariff-free access to the British market. It also guaranteed a market for store cattle and sheep and an increased butter quota. Under the agreement, Ireland was to reduce its tariffs on imports from Britain - with 1975 set as the year when this process was to be concluded and full free trade between the two countries achieved. The agreement was an important element of Irish economic policy during the 1960s. Economic depression When the economy of a country experiences a downturn, it is often said to be in recession. One popular rule of thumb for a recession is that it occurs when Gross Domestic Product (GDP) declines in two successive quarters. When the decline in GDP exceeds 10% or so or the recession lasts for three years or more, this is referred to as an economic depression. The Great Depression of the 1930s followed the Wall Street Crash, the collapse of trading on the New York stock exchange in October After the damage caused to economies during World War II, many countries experienced a period of economic depression in the post-war years. Free trade The term describes the buying and selling of goods internationally without government restrictions on imports (through the imposition of tariffs or taxes on imports) or exports (through government subsidies on goods that are destined for export). However, a free trade policy does not necessarily involve abandoning all restrictions or taxes on imports or all subsidies for goods that are due for export. Since the middle of the twentieth century, governments have increasingly reduced tariff barriers and other restrictions on international trade. PDST,

8 GATT This stands for General Agreement on Tariffs and Trade. It began as a set of agreements between 23 countries under the auspices of the United Nations in It came into effect on 1 st January 1948 with the purpose of promoting international trade. It was intended that an agency would be established to carry on its work but, when this failed to happen, the initial set of agreements was expanded over time and more countries signed up to its principles. By the time GATT was replaced by the World Trade Organisation (WTO) in 1995, 125 states had signed up to its agreements and its code of conduct helped to regulate 90% of world trade. It played a major role in the expansion of international trade. GDP This stands for Gross Domestic Product. It is the total value of the products and services produced by the people of a country over the course of a year, not including any income which is earned abroad. IMF This stands for International Monetary Fund. It is a financial agency affiliated to the United Nations and is based in Washington DC. It was formed in 1945 and aimed to promote international trade and monetary cooperation and to help stabilize exchange rates. Member countries contribute to the finances of the IMF and may seek financial help when they have balance of payments problems. However, such help usually involves a commitment to introduce measures to correct the economy, such as reductions in public spending, and these can prove controversial. Protectionism This is the idea that domestic producers can be protected and helped to thrive by putting tariffs on certain imports and/or placing restrictions on what may be imported. White Paper White papers are policy documents produced by the government that set out the basis for future legislation or significant government initiatives. PDST,

9 Biographical notes Seán Lemass ( ) Key personality Founder member of Fianna Fáil, 1926; Minister for Industry and Commerce in all Fianna Fáil governments between 1932 and 1959 (except for a brief period, ) and Tánaiste from 1945; Taoiseach, Born in Dublin, where his father had a drapery shop on Capel Street, Lemass joined the Irish Volunteers in 1915 and was based in the GPO during the 1916 Rising. During the War of Independence, he was arrested in December 1920 and interned in Ballykinlar, Co. Down. He took the anti-treaty side in the Civil War, , and was captured and interned in the Curragh Camp and Mountjoy Prison. Elected a TD in 1924 for the Dublin South constituency, he was re-elected at all subsequent elections until his retirement in On the foundation of Fianna Fáil in 1926, Lemass was appointed joint honorary secretary with Gerald Boland and became the new party s main organiser. When the first Fianna Fáil government was formed in 1932, Lemass became Minister for Industry and Commerce, a position he held in all subsequent Fianna Fáil governments until his appointment as Taoiseach in When a new Department of Supplies was established in 1939 to deal with the economic problems caused by World War II, Lemass was appointed Minister. (From 1941 to 1945, this Department was combined with Industry and Commerce, with Lemass as Minister.) Even before his appointment as Minister, Lemass had spoken publicly in favour of a policy of self-sufficiency and the need for protective tariffs to help build up Irish industry. As Minister, he introduced the Control of Manufactures Acts, in 1932 and 1934, to protect against foreign ownership of Irish companies. Some inprovement in industrial development resulted. Industrial output increased from 25.6 million in 1931 to 36 million in During the same period, numbers employed in industry rose from 110,000 to 166,000. (However, the numbers employed in agriculture declined.) When Lemass introduced the Control of Prices Act in 1937, this was seen as a response to the high prices charged by Irish manufacturers who were protected from foreign competition. Lemass also played a role in the creation of semi-state companies to lead development in sectors where private enterprise was lacking or limited. Aer Lingus (1936) and Bord na Móna were two notable successes in this regard. However, as Minister for Supplies during the Emergency Lemass saw the limitations of self-sufficiency for a small island nation. His experience in ensuring a steady flow of supplies and rationing these appropriately gave him an insight into the need for strategic planning. During his time in opposition in the 1950s, he began an intensive study of economics and, in October 1955, made what became known as his 100,000 jobs speech in Clery s Ballroom, Dublin, in which he proposed a programme of development costing some 67 million. On his return to government as Minister for Industry and Commerce in PDST,

10 March 1957, Lemass set about a major review of economic policy and, in July 1958, set up a sub-committee to supervise the drafting of a white paper Programme for Economic Expansion, based on T.K. Whitaker s report Economic Development. When Lemass succeeded de Valera as Taoiseach in June 1959, implementing the programme became a priority. Lemass was determined to attract more foreign companies to Ireland and tax concessions were introduced to encourage this. The programme was a significant success in many respects: unemployment fell (by a third), emigration decreased (by 40% between 1961 and 1966) and the output of manufacturing industry rose by 82% between 1959 and A Second Programme followed covering the years and the overall sense of an improving economic situation prompted some to label the 1960s as the best of decades. When Lemass called an election for October 1961, the results left him three seats short of an overall majority and Lemass led a minority government supported by independents until An application to join the European Economic Community (EEC later, the EU) along with Britain was stymied when Charles de Gaulle, the French president, vetoed Britain s application. The new economic policy favoured by Lemass was taken a step further in 1965 when the Anglo-Irish Free Trade Area Agreement gave tariff-free access to the British market, an increased butter quota and a guaranteed market for sheep and store cattle. (This became effective from 1 st July, 1966.) Also in 1965, Lemass became the first Taoiseach to meet the Northern Ireland premier when he met Terence O Neill in Belfast. In the general election of 1965, Fianna Fáil gained two seats and returned to power. Lemass announced his resignation as Taoiseach in November 1966 and was succeeded by Jack Lynch. He died in PDST,

11 Gerard Sweetman ( ) Fine Gael Senator, T.D. for Kildare from 1948 until his death in In the second Inter-Party (or Coalition) government of , he was Minister for Finance. Born in Dublin, his family were based in Sallins, Co. Kildare. His uncle, Roger Sweetman, won a seat in the 1918 election for Wexford North as a Sinn Féin candidate and was a TD until Gerard was educated in England at Downside School and at Trinity College, Dublin, following his father into the legal profession. As well as working as a solicitor, he took up farming and was a Cumann na ngaedheal and, later, Fine Gael supporter. Active in the Blueshirt movement of the 1930s, he stood unsuccessfully for Fine Gael in the constituency of Carlow-Kilkenny in the 1937 election. Like his future leader, James Dillon, he supported the Allied cause on the outbreak of World War II. During the Emergeny, he was active in the Local Defence Force (LDF). In 1943, a second attempt to be elected to the Dáil failed but he was successful in the subsequent election to the Seanad, serving as a Senator from 1943 until At this time, he had a wide range of business interests and was also a county councillor, serving as Chairman of Kildare County Council in Elected to the Dáil in 1948 for the constituency of Kildare, he became Fine Gael chief whip in the first inter-party government, His influence within the party grew and he was appointed Minister for Finance in the second inter-party government of While many of his tax-raising measures were unpopular, his appointment of T.K. Whitaker to the post of Secretary of the Department of Finance in May 1956 set in train a series of developments which led to the adoption of the First Programme for Economic Expansion. Appointed National Director of Organisation for Fine Gael in 1957, his party increased its representation in the Dáil in the 1961 and 1969 elections. His prominence as spokesperson on economic and financial matters ended when Liam Cosgrave became party leader in In the run-up to the 1969 election he became party spokesperson on foreign affairs. He died in a car accident in January PDST,

12 T.K. Whitaker (born1916) Key personality (See image on page 32.) Civil servant and economist. Born in Rostrevor, Co. Down, Whitaker joined the civil service in 1934, becoming an assistant inspector of taxes in 1937 and an administrative officer in Combining work with study, he took a BA degree by correspondence from the University of London, graduating in His growing interest in economics led to further study and he was awarded a BSc (Economics) degree by the same university in Encouraged by Frank Aiken (whilst Minister for Finance, ) and others, he continued to work as an external student towards an MSc and this he was awarded in The Minister for Finance in the Second Inter-Party of , was impressed by his abilities and bypassed many, more senior civil servants in appointing him Secretary of the Department of Finance in May His report, Economic Development, which he presented to the government in May, 1958, became the basis of the white paper, Programme for Economic Expansion, published by the new Fianna Fáil government in November Whitaker developed a good working relationship with Lemass and the two men are often credited with the economic improvements of the 1960s which led some to label the decade, the best of decades. He also enjoyed a good working relationship with his Northern Ireland counterpart, James Malley, and this was of considerable help in the organising of the two meetings between Seán Lemass and Terence O Neill, the Northern premier, in This was the first time since the 1920s that the heads of government in the two parts of Ireland had met. Whitaker also served as advisor to Jack Lynch (who succeeded Lemass as Taoiseach in 1966) when the Troubles began in Northern Ireland in Appointed a Senator by Lynch in 1977, he served until 1982 and became increasingly critical of Fianna Fáil economic policy. Among other positions, he has been president of the Economic and Social Research Institute (ESRI), chancellor of the National University of Ireland, chairman of Bord na Gaeilge and President of the Royal Irish Academy. In 2001, a nationwide poll organised by RTE voted T.K. Whitaker, Irishman of the Century. PDST,

13 The First Programme for Economic Expansion, : timeline 1955 October In Clery s ballroom, Dublin, Seán Lemass made much-publicised speech to Fianna Fáil party members on creating full employment. Argued need for comprehensive programme to develop country s resources May T. K. Whitaker appointed Secretary of the Department of Finance by the Minister for Finance, Gerard Sweetman 1957 February Whitaker went to Washington to assess Ireland s prospects of joining the International Monetary Fund (IMF) and the World Bank. March December New Fianna Fáil government took office with James Ryan as Minister for Finance. Government approved outline proposals submitted by Whitaker for working out an integrated programme of national development. Strong support from Tánaiste and Minister for Industry and Commerce, Seán Lemass May Whitaker presented his report Economic Development to government. July Cabinet sub-committee, chaired by Lemass, established to oversee drafting of white paper based on Economic Development. Industrial Development (Encouragement of External Investment) Act removed many of the remaining restrictions imposed by the Control of Manufactures Acts of 1932 and November Government white paper, Programme for Economic Expansion, published. Programme covered years June Lemass succeeded de Valera as Taoiseach. December Lemass told Dáil, the world trend is towards freer trade and we must not blink our eyes to it Government decided that the country should sign up to GATT (General Agreement on Tariffs and Trade). Process of progressively removing tariffs given boost. June Establishment of Economic Research Institute (subsequently, the Economic and Social Research Institute) July Government made joint application with Britain to join the Common Market. Application withdrawn when British entry vetoed by French president, de Gaulle During course of First Programme, real incomes grew by 4% Anglo-Irish Free Trade Area Agreement PDST,

14 The First Programme for Economic Expansion, : a possible line of enquiry If students are to understand the issues and events of the case study, they will need to explore the reasons why the First Programme was drawn up, how well it fulfilled its targets and what impact it had at the time. They will also need to explore why the First Programme is seen as historically significant, more so than most other comparable plans or programmes. An enquiry question such as the following may be helpful in this regard: There have been many programmes or plans for expansion in the history of the state. Why is the First Programme for Economic Expansion, , seen as such a significant milestone? One way of approaching this enquiry is to focus first on the Programme itself why it was introduced, what it involved, what impact it had at the time and, then, to explore the reasons for its historical significance. The following stages may be found helpful: Stage 1: Why was the First Programme for Economic Expansion drawn up? Stage 2: What did the government seek to do through the First Programme to bring about economic expansion? Stage 3: What impact did the First Programme have at the time? Stage 4: What is the historical significance of the First Programme for Economic Expansion? What are the potential benefits of using these questions to focus on the subject matter of the case study? In the pages that follow, for the first three stages of the enquiry a list of factors identified in commentaries is followed by a selection of linked primary source extracts and some secondary source extracts. For the fourth stage, the concept of historical significance is explored in the context of the case study, with accompanying source extracts. While most sources have undergone some degree of editing, teachers may decide to engage in further editing of some documents to facilitate use with their own classes. A possible hook T.K. Whitaker was a central figure in the drafting and execution of the First Programme for Economic Expansion. An extract (3 minutes, 10 seconds) from a TG4 programme* on Whitaker is available at The first two minutes of this clip would serve as a useful introduction to some of the dominant themes and personalities of the case study. * T.K. Whitaker Seirbhíseach an Stáit (Servant of the State), broadcast on 27 th December, PDST,

15 FILM CLIP TRANSCRIPT AND WORKSHEET Transcript of relevant portion of YouTube film clip Once by ship and now by air, the hard fact is that they go, wave after wave of emigrants and a long wash of sadness is left behind them. Must a country forever be saying goodbye to its sons and daughters the eager, the promising, the well-equipped. Ireland looks and is working toward the day when she can say to her children, Stay! We have use for all of you. (TG4 translation from the Irish) A miserably poor country was what greeted an American TV crew when they came to Ireland in The people were in dire straits, crushed by unemployment and a stagnant economy. The country had been devastated by emigration, cut off and isolated on the edge of Europe. From the beginning of the thirties, the country s leader, Eamon de Valera, had followed a policy of isolationism and selfsufficiency. Thanks to his policies, the country was almost bankrupt. It was high time for a change. What was striking was that the change came from a conservative direction: the Department of Finance; or more precisely, from the Secretary of that department, Thomas Kenneth Whitaker. He knew that immediate action was required to save the state from abject failure. The country was in danger of losing its independence. I felt an obligation to try and put things right. TK Whitaker favoured an innovative approach: economic planning, free enterprise, the liberalisation of trade, and increased foreign investment were corner stones of his scheme to promote unprecedented growth. Willingly supported by Seán Lemass, he abandoned Eamon de Valera s vision. He [de Valera] said: You ve done good work. But there are more important issues. Notes: 1. The first paragraph above is a transcription of an excerpt from the American TV documentary referred to in the first sentence of the second paragraph. 2. Since the drop in population during the Great Famine of the 1840s, the population had continued to decline and emigration was the main factor in this ongoing decline. Questions/points of discussion on the film clip/transcript 1. According to the documentary voice over (first paragraph above) what sort of Irish people were leaving Ireland as emigrants? 2. How many years had Eamon de Valera spent as head of government between 1932 and 1959 (when he stepped down and was replaced by Seán Lemass)? 3. Reference is made to de Valera s policies of (a) isolationism and (b) selfsufficiency? Discuss what these two policies involve. 4. Who does the clip identify as the leading figure in bringing about a change of direction? (His role will be explored more fully in the course of the enquiry.) 5. What were the main elements of the new direction favoured by Whitaker? 6. What other person is identified as contributing to the change of direction? (His role will also be explored more fully in the course of the enquiry.) PDST,

16 Enquiry, Stage 1 Why was the First Programme for Economic Expansion drawn up? Among the factors identified in commentaries are: Emigration was depriving the country of people who could otherwise contribute significantly to the country s economic development. The Irish economy had fallen behind the rate of development seen in other European economies. Unemployment was high. Living standards were low. Most Irish factories produced for the home market. Foreign trade was overly dependent on agriculture. Foreign investment in Ireland was limited, constrained by the Control of Manufactures Acts introduced as part of the protectionist policies of the 1930s. Relevant sources Source 1 The following is an extract from an Irish Times report, 9 th July, 1955: The Bishop of Raphoe and Derry, Dr. R. McNeil Boyd, said in Derry on June 29, that emigration was draining the lifeblood of Ireland. Addressing the Synod, he stated that previously those emigrating were for the most part young men and women, but recently whole families had departed, closing their houses and abandoning their farms. In this exodus, all sections and creeds of people were joining. No doubt, there are social and economic reasons for this flight. If that is so, then surely the time has come when the leaders of all political parties in the Republic should take council together and endeavor to find some cure for this drain on the life-blood of the country, he said. The Irish Times, 9 th July, 1955 The Irish Times 1. Speaking in 1955, what recent change in emigration patterns did Dr. McNeil Boyd notice? 2. What comment does Dr. McNeil Boyd make on people s reasons for emigrating? See what reasons are mentioned in Sources 2, 3 and What proposal does Dr. McNeil Boyd make to address the problem of emigration? For a further insight into emigration during the 1950s, see the emigrant s suitcase (Item no. 95) in the National Museum of Ireland s A History of Ireland in 100 objects at Archive material supplied courtesy of The Irish Times at PDST,

17 Secondary Source 1 The economic indicators were certainly gloomy. Between 1955 and 1957 Ireland was the only country in the western world where the total value of goods consumed had actually fallen. Between 1955 and 1958 two out of every five workers in the building industry lost their jobs. In 1957 unemployment had reached a record 78,000 and 54,000 men and women had emigrated. John Horgan, Seán Lemass: The Enigmatic Patriot. Dublin: Gill & Macmillan, 1997, p What economic indicator made Ireland unique in the western world between 1955 and 1957? 2. In what two ways does the writer identify the gloomy nature of the unemployment problem between 1955 and 1958? 3. What other serious problem does the writer identify that was caused by the country s economic problems? Source 2 The following is an extract from an Irish Times report, 29 th April, 1957 Unemployment is our first major problem, which must be solved quickly if we are to survive as a nation and keep our people at home. This was impressed upon the 39 th annual delegate meeting of the Irish National Union of Vintners, Grocers and Allied Trades Assistants in Dublin yesterday, by the president, Mr. Thomas Cox. He said his union had no large-scale unemployment because over 200 of its members left the various trades for which it catered and, of the number who left, 112 emigrated. We are aware that workers are emigrating from the distributive trade in droves, mainly because of the low standard of living and the long hours of work, with little prospect of improvement in the future. Emigration is not an acceptable solution to the problem of unemployment, he said. The Irish Times, 29 th April, 1957 The Irish Times 1. According to the report, how did Mr. Cox emphasise the seriousness of the unemployment situation? 2. Explain the references to numbers of union members in the second paragraph 3. What does Mr. Cox mean by the distributive trade? (Have a look at the first paragraph if you are not sure.) 4. Why were so many workers in the distributive trade emigrating, according to Mr. Cox Archive material supplied courtesy of The Irish Times at PDST,

18 Secondary Source 2 The following (edited) extract from his biography describes T.K. Whitaker s departure from Ireland to attend the annual meetings of the IMF and the World Bank, the first such meetings at which Ireland was officially represented. As Ken set off on that first trip to Washington, his embryonic plan for the revival of the economic fortunes of the country received a stimulus from a most unlikely source. Dublin Opinion, a popular monthly magazine, satirized the topical issues of the day through cartoons. The cover cartoon of the September 1957 issue, a copy of which Ken bought as light reading for his trip to America, showed a crone-like, irate fortune teller admonishing an attractive but dejected Kathleen Ni Houlihan figure to get to work, to which Kathleen replies: Get to work! They re saying I have no future. Encapsulating the essence of the country s economic difficulties, the cartoon was an added motivation for Ken to try to give Kathleen a future. Anne Chambers, T.K. Whitaker: Portrait of a Patriot. Doubleday Ireland, 2014, p.130. Questions and points to consider 1. What was significant about the attendance of T.K. Whitaker at the meeting that took place in Washington in September, 1957? 2. As Whitaker travelled to Washington, he had an embryonic plan for the revival of the economic fortunes of the country. Discuss what embryonic means here. 3. What sort of publication was the magazine Dublin Opinion, according to the writer? 4. When Whitaker bought a copy of the September 1957 issue of Dublin Opinion to read on his plane journey, what effect did the front cover cartoon (see next page) have on him, according to the writer? PDST,

19 Cover of Dublin Opinion, September 1957 Thanks to Dr. Maire Kennedy, Dublin City Library and Archive, for help in locating this image. PDST,

20 Source 3 The following is an extract from an opinion piece in The Irish Times, 11 th October, There is no reason to dissent from the view, maintained both by the present Government and by its predecessor, that the accent from now onwards must be on exports: we must export or, socially and economically, we must die The new accent on exports is marked also by the reversal of a policy which has existed since the 1930s. A change in the Control of Manufactures Acts has long been threatened; the Minister now announces that the necessary Bill will be dealt with during the coming session of Dail Eireann. There will be few regrets. The original legislation was all very well as long as there still was a likelihood that native capital would be forthcoming for the establishment of industry; but that dream has faded, and our present necessity is to obtain capital from any source from which it may be forthcoming. We can only hope that the new policy will be successful The Irish Times, 11 th October, 1957 The Irish Times 1. What government view does the writer seem to agree with? 2. According to the writer, the government was reversing a policy that had been followed since the 1930s. Try to work out what that policy was and what is meant by its reversal. 3. Discuss why the writer thinks the policy failed. 4. According to the writer, what did the country now need? Source 4 The following is an edited extract from an Irish Times article. The Irish economy can, in the longer run, only expand on a sound basis if the size of the markets for its available products can be widened and if well-established domestic industries are able to compete effectively on the world markets. In the main, the level of activity has so far been maintained by the special facilities which have been available for the main Irish agricultural exports to Britain and by the protection given to industries on the home market. It is doubtful whether continuation of these conditions will by themselves provide the best basis for future expansion. So runs the annual report of the Organisation for European Economic Co-operation on economic conditions in Ireland, which is published this morning What it says may not please everybody here, but the authority with which it speaks cannot be denied. The Irish Times, 23 rd December, 1957 The Irish Times 1. According to the Organisation for European Economic Co-operation (OEEC) report of 1957, what conditions were necessary for the Irish economy to expand on a sound basis? 2. What existing arrangements does the report appear to criticise? 3. Discuss what the writer means by the authority with which it speaks. Archive material supplied courtesy of The Irish Times at PDST,

21 Enquiry, Stage 2: What did the government seek to do through the First Programme to bring about economic expansion? Among the factors identified in commentaries are: The replacement of non-productive capital expenditure by productive capital expenditure. Move from protectionist policies towards free trade. To encourage foreign investment. The Control of Manufactures Acts were replaced by the Industrial Development (Encouragement of External Investment) Act, Win the support of the IMF, the World Bank and the OEEC. Source 5 What is urgently necessary is not to know that more resources should be devoted to productive rather than non-productive purposes but rather to know what are the productive purposes to which resources should be applied and what unproductive, or relatively unproductive, activities can, with the minimum social disadvantage, be curtailed to set free resources for productive development. T. K. Whitaker, Economic Development, p,227. Cited in J.J. Lee, Ireland, : Politics and Society. Cambridge University Press, 1989, p Discuss the distinction the writer makes between productive purposes and nonproductive purposes. 2. Did Whitaker wish to stop resources being spent on non-productive purposes altogether? Explain your answer. 3. Why did Whitaker wish to see less money spent on non-productive resources? Explain your answer. Advertisement in The Irish Times, 15 th November, 1958 Archive material supplied courtesy of The Irish Times at PDST,

22 Source 6 T.K. Whitaker on the documents Economic Development and Programme for Economic Expansion Both these documents bade farewell to the old outmoded ideas for economic and social progress. Self-sufficiency was abandoned and the new Programme put grass before grain and, on the industrial side, put export-oriented expansion, even under foreign ownership, before dependence on protected domestic industry, lacking adequate enterprise and skill. Notes on lead-up to joining the EEC, notes by Whitaker for Jack Lynch s address to the Institute of European Affairs, 25 th February, 1993 Cited in Anne Chamber, T.K. Whitaker: Portrait of a Patriot. Doubleday Ireland, 2014, pp Source 7 T.K. Whitaker on the move from protectionism to free trade it was recognized that reliance on a shrinking home market offered no prospect of satisfying Ireland s employment aspirations, and that protectionism, both in agriculture and industry, would have to give way to active competitive participation in a free-trading world. T.K. Whitaker, Interests. Institute of Public Administration, 1983, pp Discuss the distinction between the two documents, Economic Development and Programme for Economic Expansion. (You may need to look back at pages 6, 12 and 13.) 2. In Source 6, T. K. Whitaker refers to old outmoded ideas for economic and social progress. Can you identify two or more such ideas that Whitaker goes on to mention? 3. Explain the fundamental shift in policy identified in Source 7 that was seen as necessary if employment aspirations were to be satisfied. PDST,

23 Source 8 Excerpt (edited) from the Dáil debate on the Industrial Development (Encouragement of External Investment) Bill, 1958: 13 th May, 1958 Mr. Russell: I wonder would it be possible to simplify the Title by excluding the words: Encouragement of and just say Industrial Development External Investment Bill, As Deputy Cosgrave pointed out this Bill is intended to do away with the deterrents in the Control of Manufactures Acts, 1932 and 1934, and to give greater encouragement to industrial development. Minister for Industry and Commerce (Mr. S. Lemass): I believe it is necessary to keep the two words Encouragement of within the brackets, because the Act we are amending is the Control of Manufactures Act which was known to have restrictive provisions in it covering external investment in Irish industry. Merely to repeal that Act would not by itself emphasise the fact that the purpose of the Act was to relax these restrictions. Therefore, there are advantages in keeping the words Encouragement of in the title. The House is, I think, aware that the Department of Commerce of the United States Government is publishing a brochure on the Establishment of Business in Ireland. That will be the title of the brochure and their attention has been drawn to the fact that this Act is being passed through the Oireachtas and will, presumably, be passed in its present form. They are taking measures to incorporate in their brochure details of this Act ?opendocument, downloaded 4 th December, According to Mr. Russell, what was the purpose of the Bill under discussion, the Industrial Development (Encouragement of External Investment) Bill? 2. Why did Mr. Russell want a change in the wording of the Bill? 3. According to Mr. Lemass, why were there advantages in keeping the words Encouragement of in the title? 4. Discuss why Mr. Lemass mentions that the U.S. Department of Commerce is publishing a brochure on the Establishment of Business in Ireland. (Consider the relevance of this to the Bill under discussion.) Source 9 From the address given by the Deputy Secretary-General of OEEC in Dublin recently, it is clear that the main countries have accepted the proposition that they must provide the export opportunities, the trading advantages, the investment and technical assistance, and the codes of commercial and financial behavior that will permit the poorer peripheral nations to raise their standards of living to those of the richer countries. The Irish Times, 22 nd May, 1958 The Irish Times 1. In what ways did the writer expect the poorer peripheral nations such as Ireland to benefit from the acceptance by the main countries in the OEEC that they needed to help the poorer countries? 2. How significant was it that the Deputy Secretary-General of the OEEC had come to Dublin to express the views mentioned? Archive material supplied courtesy of The Irish Times at PDST,

24 Enquiry, Stage 3: What impact did the First Programme have at the time? Among the factors identified in commentaries are: The positive response from the time the programme was published The positive response from industrialists and trade union leaders The increase in investment in industry, much of it from overseas firms The decline in emigration Secondary Source 3 On 28 October Seán Lemass told the Fianna Fail Ard Fheis that, within the next few days, a Programme of National Economic Development would be published as a White Paper: the government had decided, he said, that it was essential to re-define the objectives of national economic policy. The White Paper was duly published on 12 November. Ten days later, on Saturday, 22 November 1958, Economic Development was published. The public response was immediate and remarkable. It would be gratuitous to give the long list of economists, journalists, academics and leaders in commerce, industry and other walks of life who wrote to Whitaker congratulating him and his colleagues upon their achievement. But one letter might be mentioned: also dated 22 November and written by a teacher living in Dublin who had never met Whitaker, it contained the following final word of appreciation : I wish that every man, woman and child would take your book and read it, and read it again and again, and use it as their gospel for the next year. Then we should see some improvement in the national outlook of our people. When a publication of the Department of Finance could inspire such sentiments in even one member of the general public, something had indeed changed utterly. Ronan Fanning, The Irish Department of Finance, Dublin: Institute of Public Administration, 1978, p What reason did Seán Lemass give the Fianna Fáil Ard Fheis for the imminent publication of a Programme of National Economic Development? What do you think he meant by this? 2. The programme was published on 12 th November, 1958, as a government White Paper. What is a White Paper? (Check the glossary on p.8 if you are unsure.) 3. According to the writer, what kinds of people wrote to Whitaker to congratulate him and his colleagues on their plans for economic development? 4. Discuss why the writer sees the letter written by a teacher living in Dublin as being of particular significance. PDST,

25 Source 10 (edited): Irish industrialists on the First Programme Dr. J. I. Fitzpatrick, president of the Federation of Irish Industries, said yesterday that the planned approach to the solution of the Republic s economic problems was the only one. The economic study, now commonly referred to as the Grey Book had marked, he said, a welcome new phase in the approach of the authorities to broad economic problems. His organisation had publicly recorded its support both for this study and the more recent White Paper, Programme for Economic Development. Mr. Liam St. J. Devlin, chairman of the Cork regional branch of the federation, said that he thought Irish industrialists had found it too easy to find excuses as to why they could not keep up with their foreign competitors. The White paper had been of enormous value because it had forced Irish manufacturers to stop and make an assessment of their goods and methods of production and marketing. The Irish Times, 5 th February, 1959 The Irish Times 1. What was Dr. Fitzpatrick s view of the planned approach to solving Ireland s economic problems? What did he mean by this? 2. Explain the distinction made by Dr. Fitzpatrick between the economic study (or Grey Book ) and the White Paper. 3. What criticism of the past practices of Irish industrialists is made by Mr. St. J. Devlin, chairman of the Cork regional branch of the federation? Source 11: A government minister claims broad support for the First Programme In Ennistymon yesterday, Mr. Childers, Minister for Lands, said that the Government was operating a programme for economic expansion that had received the commendation of virtually all the agricultural and industrial interests of the country. There was no opposition in the Dáil to the main features of the programme. Ten years of useless coalition bungling had resulted finally, he said, in a totally unnecessary crisis, because its realities had never been faced. The work of nation building was beginning now, 10 years later, but not too late if everyone realised that there was massive work to be done. The most important need at the present time was to inspire confidence and to encourage ambition. The Irish Times, 20 th July, 1959 The Irish Times 1. According to Mr. Childers speech, the programme for economic expansion had received widespread support. What evidence does he offer for this? 2. Discuss Mr. Childers use of the phrase ten years of useless coalition bungling. 3. Discuss Mr. Childers use of the term nation building in referring to the programme for economic expansion. 4. What did Mr. Childers see as the most important need at the present time? Why do you think as he saw this as being of key importance? Archive material supplied courtesy of The Irish Times at PDST,

26 Source 12: J. I. Fitzpatrick (See Source 10) on the move away from protectionism (edited) It must be accepted now that the era of protectionism as far as Irish industry was concerned was coming to an end, said Dr. J. I. Fitzpatrick, chairman of Irish Industrial and Commercial Councillors, Ltd., and former president of the Federation of Irish Industries, when he presided at a conference in the Shelbourne Hotel, Dublin, last night, in connection with plans for the Irish pavilion at the Frankfurt International Spring Fair, from next March 6 th to 10 th. It seemed to him that, first of all, as an island people, the Irish should avail themselves of every opportunity to meet the peoples of the mainland of Europe and the rest of the world, so as to swap ideas and to pick their brains wherever possible. The Irish Times, 8 th January, 1960 The Irish Times 1. What did Dr. Fitzpatrick mean when he said that the era of protectionism as far as Irish industry was concerned was coming to an end? 2. Dr. Fitzpatrick was speaking at a conference discussing the plans for Irish involvement in the Frankfurt International Spring Fair. (This fair was a showcase for consumer goods and other manufactured products. It still runs each year under the name, Ambiente *.) Why do you think he made the statement about protectionism at this conference? 3. What benefits does Dr. Fitzpatrick see in the attendance of Irish people at events such as the Frankfurt fair? * For more information on Ambiente, today s version of the trade fair in Frankfurt, see Archive material supplied courtesy of The Irish Times at PDST,

27 Source 13: 1960 report on progress of First Programme (edited) The second report on the Programme for Economic Expansion, which is published this morning, shows that progress has been made under all heads of the programme towards the ultimate aim of a 2% increase in national income over the five years of the plan. More industrialists were taking advantage of facilities provided by the Industrial Credit Co. Ltd., says the report. The Industrial Development Authority s special representative to Europe had concentrated his efforts on Germany in the main, but a preliminary visit had been made to Italy and the Netherlands to arouse greater interest in those countries in the opportunities available in Ireland. In the six months reviewed, 38 firms began production or extended their range of production here. The Irish Times, 23 rd April, 1960 The Irish Times 1. According to the second report on the Programme for Economic Expansion, what aim seemed to be on target? 2. What is the significance of More industrialists taking advantage of facilities provided by the Industrial Credit Co. Ltd.? 3. What was the motivation behind the visits to Germany, Italy and the Netherlands of the Industrial Development Authority s special representative to Europe? 4. What final detail quoted from the report suggests that industrial expansion was well underway? Notes 1. The Industrial Credit Company was a state-owned bank established in 1933 as part of the drive for economic self-sufficiency. It helped to provide capital for Irish manufacturers. 2. The Industrial Development Authority (IDA) was established in 1949 as an agency of the Department of Industry and Commerce. Its brief was to promote industrial growth and examine the existing protectionist structure of Irish industry. In 1970, it merged with An Foras Tionscail (The Industrial Institute) to become an autonomous state-sponsored body with responsibility for attracting foreign investment and supporting foreign and national industrial expansion Archive material supplied courtesy of The Irish Times at PDST,

28 Source 14: newspaper report on industrial estate at Shannon Industrialists were being attracted to the industrial estate at Shannon the first in the world situated in an airport because of the availability of air-freight facilities, the Minister for Transport and Power, Mr. Childers, said yesterday in the Dáil when moving the Second Reading of the Shannon Free Airport Development Company Ltd. (Amendment) Bill, All indications are that the factories can be leased as soon as they can be built. At the end of June eight factories were in operation employing 724 workers. All the industries were primarily export ones and were not in competition for the home market with other Irish manufacturers. The Irish Times, 26 th July, 1961 The Irish Times 1. According to the newspaper report, what was unique about the industrial estate at Shannon? 2. According to Mr. Childers, why were industrialists being attracted to the industrial estate at Shannon? 3. At the end of June, 1961, how many workers in total were employed in the eight factories that were in operation? Numeracy opportunity: Work out the average number of workers per factory. 4. All the industries were primarily export ones. Why is this seen as significant? An aerial view of Shannon with the industrial area to the left downloaded Archive material supplied courtesy of The Irish Times at PDST,

29 Source 15: a trade union leader on the fall in emigration The recent fall in emigration figures was of great significance for the economic future of Ireland, said Mr. James Murrow, Divisional Organiser of the Amalgamated Engineering Union, when he spoke about the aims and policy of the Union at a week-end school of its members in Athlone, on Saturday and yesterday. The opportunities for training in the new industries that had developed in the country were just what the most adventurous and intelligent sections of the Irish working class had been waiting for. In the past those were the people who made up the bulk of the emigrants. It might be that in the future fewer enterprising and able Irishmen would leave their native country. If that was so then economically, industrially and politically, Ireland would gain. The Irish Times, Monday, 7 th May, 1962 The Irish Times 1. What did Mr. Murrow see as being of great significance for the economic future of Ireland? 2. What group of people does Mr. Murrow identify as likely to benefit from the opportunities for training in the new industries? What would these people have done in the past, according to Mr. Murrow? 3. What hope for the future is expressed by Mr. Murrow? Source 16: the publication of the Second Programme for Economic Expansion [The] Government s Second Programme for Economic Expansion [is] published today. It looks for a 50% increase in the Gross National Product over the decade to 1,003m., with the major contribution coming from industry. In 60 pages of detailed analysis, the Programme sets out how this aim can be achieved, the performance needed from each sector of the economy and the likely results for public and personal spending. But it warns that, while facts and figures are important, the success of the new Programme which follows up the highly successful 1958 White Paper depends largely on the goodwill and effort of each individual. The Irish Times, 22 nd August, 1963 The Irish Times 1. When was the Second Programme for Economic Expansion published? 2. What sector of the economy was to make the major contribution to the Second Programme? 3. What level of detail did the Second Programme provide? 4. What verdict does the newspaper give on the First Programme (the 1958 White Paper )? Archive material supplied courtesy of The Irish Times at PDST,

30 Enquiry, Stage 4 What is the historical significance of the First Programme for Economic Expansion? Considering the concept of historical significance An important attribute of the historian is the capacity to assess the historical significance of events and issues in the past. Such assessments are provisional rather than absolute and historians may disagree about the significance of particular events, but thinking about and weighing up significance is an important part of what historians do. Getting students to think about historical significance is an excellent way of helping to develop students critical thinking skills in history. To assist students in considering the historical significance of particular events and developments, the following criteria may be useful: Five Rs for thinking about historical significance Historians tend to judge historical phenomena as significant when these phenomena are one or more of the following: Revealing of some aspect of the past Remarked upon the event/development was remarked upon by people at the time and/or since Remembered the event/development was important at some stage in history within the collective memory of a group or groups Resonant people like to make analogies with it; it is possible to connect with experiences, beliefs or situations across time and space Resulting in change it had consequences for the future Christine Counsell, History and Literacy in Y7: building the lesson around the text. John Murray, 2004, p.80 It is worthwhile exploring with students the extent to which the First Programme for Economic Expansion fits the criteria above, by posing questions based on each criterion. Depending on the class profile, the level of interest and the time available, some or all of the following may be explored with students. Some consideration brief, if necessary should be given to each of the five questions. Question 1: Is the First Programme revealing of some aspect of the past? Question 2: Was the First Programme remarked on at the time and/or since? Question 3: Is the First Programme remembered today? Question 4: Does the First Programme still resonate today in the sense that people make connections with it across time and space? Question 5: Did the First Programme cause change or have consequences for the future? PDST,

31 Question 1: Is the First Programme revealing of some aspect of the past? Many commentators characterize the First Programme as a significant turning point in the history of the state. An early appraiser of the value of the programme was Dr. Garret FitzGerald, economist and, later, Taoiseach ( , ( ): Source 17 (edited) Four years have passed since the Programme for Economic Expansion was published, together with Economic Development, the study by Mr. Whitaker on which the programme was based. Up to 1958 our economic policy had been somewhat haphazard and, despite some notable achievements, rather ineffective. The Programme for Economic Expansion helped to generate and sustain economic growth by re-considering some unsuccessful policies, placing a new emphasis on the desirability of State investment being productive, expanding and widening State investment, and channeling additional capital to the private sector through State agencies. While our economic growth since 1958 owes much to the operation of external forces and something to luck, the new measures introduced by the Programme for Economic Expansion have also been an important contributory factor without which our achievements of the last four years would certainly have been less impressive. The Irish Times, 12 th December, 1962 The Irish Times 1. Recap: Explain the distinction made by Dr. FitzGerald between the Programme for Economic Expansion and the study, Economic Development. 2. How does Dr. FitzGerald characterize Irish economic policy up to 1958? 3. What changes brought about by the First Programme does Dr. FitzGerald identify as contributing to economic growth? 4. What is Dr. Fitzgerald s overall verdict on the success of the plan to date? Secondary Source 4 Never before had the state committed itself to a comprehensive and rational plan for the economy as a whole. It was a new departure also in the more fundamental sense of moving away from the old Sinn Féin philosophy of self-sufficiency and industrial protection, which, the programme warned, can no longer be relied upon as an automatic weapon of defence. John A. Murphy, Ireland in the Twentieth Century. Dublin: Gill & Macmillan, 1975, pp Question/point for discussion According to the writer, in what ways was was the First Programme a significant turning point? Archive material supplied courtesy of The Irish Times at PDST,

32 Secondary Source 5 Nor did the Republic experience the effects of the post-war economic revival: the 1950s saw a dismal combination of economic recession and heavy emigration. Not until 1958 was there any sign of a new economic order, when the government launched the First Programme for Economic Expansion Fergal Tobin, The Best of Decades: Ireland in the 1960s. Dublin: Gill & Macmillan, 1984, p According to the writer, what did the Republic experience as post-war economic revival happened elsewhere in the 1950s? 2. What significance does the writer attribute to the launch of the First Programme in 1958? Question 2: Was the First Programme remarked on at the time and/or since? We have seen how the First Programme was remarked on by newspapers reporters and other commentators at the time and by historians and other commentators over the decades since. Further examples feature in the sections that follow. In 2001, T.K. Whitaker was voted Irishman of the Twentieth Century, finishing ahead of other favourites such as Michael Collins and John Hume. He was recognised for his huge contribution to the improvement of the Irish economy and, in particular, for his role in the First Programme for Economic Expansion. Architect of modern Ireland: TK Whitaker at home in Dublin in 2014, aged 97. Photograph: David Sleator The Irish Times This photograph appeared in The Irish Times on 11 th December, 2015, with the caption as above. Note the reference to Whitaker as Architect of modern Ireland. Archive material supplied courtesy of The Irish Times at PDST,

33 Question 3: Is the First Programme remembered today? Secondary Source 6 While this resource was being prepared, T.K. Whitaker turned 99 years of age (on 8 th December, 2015). In an Irish Times opinion piece, his biographer, Anne Chambers, wrote as follows: In 1958, against a background of economic stagnation, and motivated by a sense of anxiety and urgency about Ireland s economic and political future, he wrote Economic Development, a blueprint for the economic regeneration of the country. Detailed, meticulous and comprehensive, Economic Development surveyed the Irish economy, from agriculture to tourism, examining its deficiencies as well as its potential. The document offered radical remedies: the replacement of unproductive by productive capital expenditure, the introduction of free trade, and an end to the isolation and protectionism of the previous era. But, above all, Economic Development offered hope for the future and a way out of Ireland s economic quagmire. Economic Development and the White Paper that derived from it, The First Programme for Economic Expansion, led to a period of unparalleled constructive growth and optimism. The Irish Times, 11 th December, 2015 The Irish Times 1. According to the writer, what was T.K. Whitaker s motivation for writing Economic Development? 2. What does the writer mean when she describes Economic Development as a blueprint for the economic regeneration of the country? 3. According to the writer, what did Economic Development survey? 4. According to the writer, what radical remedies did the document offer? 5. What is the writer s overall verdict on Economic Development and the First Programme? Archive material supplied courtesy of The Irish Times at PDST,

34 Question 4: Does the First Programme still resonate today in the sense that people make connections with it across time and space? Secondary Source 7 In a contribution to the Irish Times series Modern Ireland in100 Artworks, on 12 th September, 2015, Fintan O Toole, in writing about John B. Keane s play, Sive, observed: Keane began his dramatic career at a time when Ireland, under the tutelage of T.K. Whitaker and Sean Lemass s modernising programme for economic expansion, was setting out on its own social and economic revolution, one that would sweep away the last vestiges of the outlandish premodern mindset that Keane explored. Sive, in some respects, captures the tensions of this great change. The Irish Times, 12 th September, 2015 The Irish Times 1. According to the writer, what great change was happening in Ireland as John B. Keane began his dramatic career? 2. The writer says that, Sive, in some respects, captures the tensions of this great change. Discuss why periods of great change are associated with tensions. Question 5: Did the First Programme cause change or have consequences for the future? Clearly, the First Programme did cause significant change, much of it beneficial, for the Irish economy and Irish society, and is a significant factor in the 1960s being labelled, the best of decades. Secondary source 8 The First Programme for Economic Expansion aimed, through a radical redirection in public investment from social objectives, such as the construction of houses and hospitals, to productive ones, such as new industry, tourism and agricultural research, to achieve a growth rate of 2 per cent per annum in the Irish economy for five years. Beyond this modest target, however which was doubled by the actual achievement, as events turned out lay a desire to chart a definite course out of the fog of despair and gloom that enveloped the Republic of Ireland in the mid-fifties. The emergence of a rational solution to the terrible crisis, and the realization that Ireland was not fated simply to self-destruction, had a profound effect on public confidence. Fergal Tobin, The Best of Decades: Ireland in the 1960s. Dublin: Gill & Macmillan, 1984, p What does the writer identify as the aim of the First Programme? 2. What does the writer say about the target growth rate contained in the Programme? 3. What profound, psychological impact did the First Programme have, according to the writer? Archive material supplied courtesy of The Irish Times at PDST,

35 Secondary Source 9 For contemporaries as well as for most subsequent historians Lemass was identified with the rising tide of Irish economic growth in the 1960s, at once cause and symbol of the new Ireland developing into prosperity and modernisation as the First Programme surpassed its targets. Every economic indicator was positive. More importantly the century-long demographic decline was reversed. Brian Farrell, Seán Lemass. Gill & Macmillan, 1983, pp What consequences of the First Programme does the writer identify? 2. Which individual was most identified with the improving economic situation, according to the writer? Suggest reasons why it was he rather than his civil service colleague who was given most credit for the improvements. PDST,

36 Postscript: the Anglo-Irish Free Trade Area Agreement, 1965 In 1965, the Anglo-Irish Free Trade Area Agreement was signed. It marked a significant point in the move away from protectionism to free trade and may be seen as a pointer towards the future when (in 1973) Ireland and the United Kingdom joined the common market of the European Economic Community (now, the European Union). The business magazine, Business and Finance, featured the news of the Agreement on its front cover in July 1965, as follows: Research and points for discussion Business and Finance Used with permission 1. The front cover headline suggests an Anglo-Irish Common Market was about to be formed. See if you can find out whether this is an accurate or exaggerated interpretation of what was planned for in the Act. 2. In what sense if at all was The Border to Go, as the front cover headline claims? PDST,

37 A critical skills exercise Documents-based study Development of critical skills Documents-based question The Leaving Certificate History syllabus states that the documents-based study is the primary means of developing [students ] skills in working with evidence. (p.5) The syllabus also states that, in the examination, the documents-based question will test candidates ability to interrogate, correlate and evaluate a particular body of evidence. (p.15) Rationale for card sorts In a card sort, cards with text (single words, phrases, sentences) are grouped or ranked according to particular criteria. Card sorts are good in helping students to make connections and form judgements. By having the text on cards, students can move them around, group them and, when necessary, change their minds. This approach promotes discussion and collaborative learning. The intention of the critical skills exercise on the pages that follow is to illustrate in a practical and active manner the type of critical skills that the documents-based study is designed to develop. Essentially, the purpose of the exercise is to encourage students to THINK by discussing snippets of evidence and making judgements on their import by deciding whether they support or oppose the given proposition. The PLAY element is important and the exercise should be an engaging one for students. The intention is not to come up with answers that are either right or wrong : much of the value of the exercise is in the process itself. That said, it should be possible to reach consensus in most cases and to clarify misunderstandings where these arise in the process. In literacy development, such approaches can play a pivotal role as students engage together in purposeful reading and discussion of text and are active participants in the learning process. What is involved in the critical skills exercise Each group of 4-5 students is given an A4 sheet with the proposition at the top of the page and two columns headed: Agrees and Disagrees. Each group is also given an envelope containing 8 short documentary extracts each on its own small strip of paper or cardboard and the task is to discuss with each other the appropriate column in which to place each extract. When each group has reached its conclusions, the outcome of the exercise is discussed in a whole group setting. PDST,

38 Proposition: The First Programme for Economic Expansion, was successful. Place each of the secondary source extracts in the appropriate column, depending on whether you think it agrees or disagrees with the above proposition. If the group cannot agree on whether a particular extract agrees or disagrees with the proposition, place it along the dividing line in the middle and wait to hear what other groups have to say about the extract. Agrees Disagrees PDST,

39 Source A The Gross National Product rose over the period of the plan by more than four per cent, instead of the modest two per cent aimed at in the Programme, though it has been pointed out that external conditions were particularly favourable at that time. Source B The success of the initial Programme for Economic Expansion must have taken even its instigators by surprise. There was a rise in the value of the country s exports of 35 per cent from mid-1959 to mid-1960 alone. Source C The first phase of economic planning in Ireland covered the period 1958 to the end of the sixties. The extent to which the obvious growth of the Irish economy was a result of these programmes remains an open issue. Source D The programme itself could hardly have created prosperity in the early 1960s had not external trading conditions been buoyant, but at the very least it provided the framework of an impressive expansion of the economy in the five-year period from November Source E The First Programme marked the end of an era. Most of the policies proposed related to agricultural matters. By 1963 however the performance of agriculture was seen as extremely disappointing. The major advances had taken place in industry. Source F It is easy in the light of hindsight to criticise Economic Development and the White Paper based on this document. Its assertion that the dynamic for growth would be found in agriculture was unfounded: the dynamic for growth in the 1960s came from industry. Source G It is still contested whether that programme was, really, the cause of the remarkable economic recovery that occurred in the years after 1958 or whether its association with that recovery was fortuitous. Source H Traditional industries did not develop a new look or a higher export profile. In the first six years of the Programme 80 percent of private investment came from foreign capital. Foreign capital had been attracted with a vengeance; whether native industrialization had been genuinely encouraged was more questionable. PDST,

40 Source E Mary E. Daly Social and Economic History of Ireland since 1800 (1981) p.167 (edited) Source F Garret FitzGerald Foreword, in John F. McCarthy (ed.) Planning Ireland s Future: The Legacy of T. K. Whitaker (1990). pp.5-10, p.9 Source A F. S. L. Lyons Ireland since the Famine (Fontana edition, 1973) p.630 (edited) Source B Diarmaid Ferriter The Transformation of Ireland, (2004) pp (edited) Source G Patrick Lynch Ireland since the Treaty ( ), in T.W. Moody and F.X. Martin (ed.) The Course of Irish History (1967). pp , p.337. Source C John Bradley The Legacy of Economic Development: The Irish Economy , in John F. McCarthy (ed.) Planning Ireland s Future: The Legacy of T. K. Whitaker (1990). pp , p.63. Source H R. F. Foster Modern Ireland, (1988) pp Source D John A. Murphy Ireland in the Twentieth Century (1975) p.144 PDST,

41 Historians views about the First Programme for Economic Expansion Secondary Source A Prepared by Ken Whitaker and driven by Sean Lemass, the first Programme for Economic Expansion proved enormously successful in transforming the Irish economy. As the message and opportunities it embodied sank home, it released a reservoir of suppressed energy and optimism in the country, helped by the buoyancy of international trade. Targets set in the programme were surpassed. The modest annual growth of just under 1 per cent in GDP achieved between 1949 and 1957 rose to almost 4.5 per cent and, significantly, without any negative impact on the balance of payments. Employment and investment increased, and emigration, the country s most persistent affliction, was finally arrested in 1966 with a population rise of sixty-six thousand. Anne Chambers, T.K. Whitaker: Portrait of a Patriot. Doubleday Ireland, 2014, p.153. Secondary Source B The success of the initial Programme for Economic Expansion, as enunciated by the Secretary of the Department of Finance, T.K. Whitaker, in 1958, must have taken even its instigators by surprise, given that the report s tone still revealed a certain caution about free trade. There was a rise in the value of the country s exports of 35 per cent from mid-1959 to mid-1960 alone, while the worries of foreign debt and inflation seemed to be a thing of the past. Unilateral tariff reductions in the years 1963 and 1964 set the tone for the Anglo-Irish Free Trade Area Agreement of 1965 Diarmaid Ferriter, The Transformation of Ireland, Profile Books, 2004, pp Secondary Source C Lemass s concrete achievements have been disputed. His reputation rests mainly on the policy signalled in the title of the famous report drawn up by the Secretary of the Finance Department, T.K. Whitaker, in 1958: Economic Development The distinctive feature of the policy he developed in the 1958 White Paper A Programme for Economic Expansion was the stimulation of industrial exports through the fostering of foreign investment. In the 1960s this policy began to flower: over 350 new foreign companies were established in the decade. By 1974 foreign firms produced 40 per cent of manufacturing exports. The five years of the first Programme for Economic Expansion ( ) saw a growth rate of 4 per cent, and this continued through the Second Programme ( ) In 1966 there was the first population growth to be recorded since the Famine Overall, Ireland reached an epochal moment. The point of intersection in the balance between agricultural and industrial workforce was crossed in the 1960s: in 1961 the balance was 379,000/257,000, in ,000/323,000. Charles Townshend, Ireland. The 20 th Century. Arnold (London), 1998, pp PDST,

42 Secondary Source D With world trade investment flourishing in the early sixties, it is likely that some degree of economic recovery would have occurred in Ireland with or without the recommendations outlined in the Whitaker Plan. Psychological recovery might have been more elusive without Economic Development. Instead of the crushing sense of gloom that pervaded Ireland during the 1957/8 recession, Whitaker offered a vision of hope. Whitaker did not transform Ireland: its most intractable problems, such as unemployment and relatively low national income, have not yet been solved. But the stagnant Irish economy did move forward. The government had set a goal of doubling the national rate of growth and, to almost everyone s surprise, this goal not only was achieved but was surpassed. The country was far better off when Whitaker retired as Finance Secretary in 1969 than when he took office in John F. McCarthy, Ireland s Turnaround: Whitaker and the 1958 Plan for Economic Development, in John F. McCarthy (ed.) Planning Ireland s Future: The Legacy of T. K. Whitaker. The Glendale Press Ltd., pp.11-71, p.63. Secondary Source E Four features make Economic Development and the First Programme historic documents. Firstly, the content, signalling a shift from protection towards free trade, and from discouragement to encouragement of foreign investment in Ireland, involved a dramatic reversal of the rhetoric, and to a large extent of the practice, of all policy, but especially Fianna Fáil policy, since J.J. Lee, Ireland, : Politics and Society. Cambridge University Press, 1989, p Secondary Source F The Programmes for Economic Expansion, which built on Whitakerism, were put into practice by the ex-protectionist Lemass. Membership of the EEC was applied for in 1961, and finally succeeded in In 1965 the establishment of an Anglo-Irish free trade agreement area agreement accepted as an economic reality what would have been politically unthinkable in the pre-war era In the meantime, the formula had apparently begun to work. From 1960 to 1969, 350 new foreign companies were established in Ireland; in 1966 the statistics showed the first increase in population since the Famine (62,000). Business management and marketing techniques were professionalized; financial analysis was introduced on a large scale; research councils for economic and industrial affairs attained a new importance. In the first six years of the Programme 80 per cent of private investment came from foreign capital. R.F. Foster, Modern Ireland, Allen Lane, The Penguin Press, 1988, p PDST,

43 Our enquiry has focused on the question: Interrogating the historians Why is the First Programme for Economic Expansion, , seen as such a significant milestone? 1. (a) Which historians mention the moves towards free trade and away from protectionism? (b) Which historian draws attention to the particular significance of the Anglo- Irish Free Trade Area Agreement as an agreement that would have been unthinkable in the pre-war era? 2. (a) Which historians draw attention to the moves away from restricting foreign investment to encouraging foreign investment? (b) Which of these historians give a figure for the number of foreign firms that set up business in Ireland in the 1960s? 3. Which historians mention the increase in economic growth or GDP? 4. Which historians mention the increase in population and/or decline in emigration? 5. In Secondary Source C, the writer says that Ireland reached an epochal moment in the 1960s as a result of the policy changes brought about by the First Programme. Discuss what the writer means by an epochal moment in this context. 6. Secondary Source F identifies some important changes that happened in the 1960s besides the ones covered by Questions 1 to 5 above. What are these changes? 7. In Secondary Source D, the writer says that, Whitaker did not transform Ireland. Should this statement be taken at face value, in isolation, or does it need to be read carefully in context? Explain your answer. 8. Do any of the other historians credit Whitaker and/or Lemass with bringing about transformation (major change) in Ireland? 9. Does the sense of the First Programme as a significant milestone come through in each of the six secondary source extracts? Explain your answer. PDST,

44 Your conclusions on the enquiry Our enquiry has looked at the reasons why the First Programme was introduced, the changes the government sought to bring about, the impact the Programme had at the time and its historical significance. Based on the evidence you have encountered in the course of the enquiry, draw up a list of (a) two major reasons why the First Programme was introduced (b) two major changes that the government sought to bring about through the implementation of the Programme (c) two major ways in which the Programme made an impact at the time and (d) two major reasons why it is seen as historically significant Make your case in a written report, devoting one paragraph to each of the reasons identified. In a concluding paragraph, give your judgement based on the evidence you have studied in relation to the question: Why is the First Programme for Economic Expansion, , seen as such a significant milestone? OR Now that we have looked at a wide range of evidence on the First Programme for Economic Expansion, 1958 and 1963 What do you think are the TWO most important points about the reasons why the government brought in the First Programme? What do you think are the TWO most important changes brought about by the First Programme? What do you think are the TWO most important reasons why historians regard the First Programme as a significant milestone in the history of Ireland? For each of the reasons you give, you must back up your reason with evidence from the primary sources (such as newspaper reports, film clips, diary extracts) or secondary sources (such as extracts from the writings of historians) that we have studied. PDST,