GRADUATION ADDRESS TO THE COMMERCE FACULTY
UNIVERSITY COLLEGE CORK
27th September 2000

"Ar scáth a céile a mhaireann na daoine".

"Politics is not only the art of the possible, it is also the art of making possible tomorrow what is impossible today". Jean Monnet

1. President Wrixon, Staff of the University, Graduates, Family and Friends of Graduates, Members of the Governing Body. It is an honour to have been asked to address the Class of 2000. As a fellow graduate of UCC, I am particularly pleased to have the opportunity to address you today on one of the first major occasions in your professional lives.

   It is entirely appropriate that I should applaud and indeed pay tribute to your success at UCC, a great university which has been a centre of excellence in Munster and in Ireland since 1845. You, as graduates of UCC, will find that this College has a distinguished reputation as has Irish third level education generally both within Ireland and internationally. Your links with UCC will serve you well wherever you go in the future.

   It is equally appropriate that I should on behalf of all the students and their families pay tribute to the Academic Staff of the University. I would also wish to pay a personal tribute, many years after my own graduation, as someone who in his career in economic development and in international finance, throughout the European Union; in Ireland both at national level and in the Gaeltacht, has come to appreciate the tremendous quality of the teaching, research and collaboration with industry that characterises UCC and which is constantly being improved on.

2. Graduation day, in particular, is a day to acknowledge the enormous contribution of the academic community of College who have shared the wealth of their own highly professional experience with you and without whom little would be achieved. These academic staff are the cutting edge of the University and its most valuable asset; as a community, you and we together are all indebted to them for the enormous public good they generate through teaching, research and the education of successive generations of students to meet the challenges of a changing world in the many fields in which, as in economics and business, they have distinguished themselves.

   Graduation is an enormous first step at the beginning of your professional lives. It has given you the foundation necessary to develop your skills to the utmost of your ambitions, for the benefit not only to yourself and your immediate family, but also the common good and the national interest as a whole.

   This is a day when, with justification, you can feel success is very close to you and a great confidence about the future. You are living in interesting times with all of the challenges and choices that that implies. The problems of growth, which are now evident in the current phase of the Irish economy, are no less real and no less difficult to resolve than the problems of under-development faced by previous generations. I would therefore like to address some challenges that you are likely to face in your future, issues that you must master:

   • as business people in a rapidly changing, highly competitive world economy;
   • as citizens of Ireland within the European Union which itself is facing further substantial developments and enlargement; and
   • as individuals who, at a purely personal level, will have to balance many professional and other pressures to which you will undoubtedly be exposed as you seek a high quality of life for you and your families.

    

3. As business people you will find that you must invest continuously in the education and training, not just of your own future staff and employees but also of yourself. It is expected that the demand for learning will move from:
   1. a "just-in-case" model whereby up to 80% of a traditional degree will be redundant for all of one's subsequent career, through
   2. "just-in-time" learning, approximating to the notion of life-long learning, from which the next step might be
   3. "just-for-you" learning, i.e. education tailored and delivered so that it is convenient in time, place and in format for the individual.
   Such a vision begs major questions as to the business of higher education and the universities in the 21st century. At a more practical level, it also raises issues as to the responsibility for quality control and governance. The courseware development costs would be enormous and would require collaboration with industry. The potential of this market to contribute to the further development of a knowledge-based economy is considerable. Certain leading universities in Ireland could be well suited to take the lead in these developments.

   The interests of the universities and of the industry in the development of life-long learning, while not identical, are fully complementary. There is an increasing awareness and understanding that, in a world increasingly dependent on digital technology, it is students coming out of universities who are one of the key agents of change in society. When they are recruited to companies, they are already accustomed to researching things electronically, following courses etc and so demand a similar medium of communication from their employers who themselves are, increasingly willing to embrace this approach because of the benefits in productivity and competitive advantage to their companies. While higher education is, in the initial stage particularly, a social as well as a cognitive experience, use of distance learning and other techniques, provided it is of high quality, can fulfil important needs, particularly for professional development.

4. As business people, you will also be interested in the business of further education. The global spread of IT and the English language are now providing the conditions for the development of a truly global market in teaching, as well as learning in higher education as well as for industry and commerce. The Universities can provide most of the academic expertise and crucially the quality control and assessment essential for market credibility. The commercial partners provide production facilities, distribution, marketing etc, as well as much of the underlying technology. Though these types of partnerships are now increasingly becoming established in North America, it is still relatively novel in Europe to bring these partnerships are being brought together despite the high quality of education and the creative talent of the media and communications sector.

   The distance learning and on-line model of education is also being vigorously adapted by many major companies around the world as major corporations are bringing their management and training in-house and developing what are now called Corporate Universities of which, while there are an increasing number in Europe, there are a substantial number (1000 or more) in North America, both at sub-degree as well as degree level. So there is clearly a huge range of innovative activity taking place in the field of teaching and research spurred on by technological advances and the IT revolution.

   Such developments offer many opportunities both large and small for you as a university and as business people. I would be surprised if Irish universities and business people did not develop significantly in this sector given the comparative advantages of Ireland's universities; it's strength in the IT sector; it's language capabilities and the close understanding of industry's needs that charaterises government in Ireland.

5. As a European Financier, I should also turn to the question of financing innovation. It is generally considered that the capacity of EU economies to innovate and to exploit new technologies compares unfavourably with the US economy where information communication technology (ICT) has contributed strongly to growth and productivity in recent years. This may have been so initially, but is no longer so as European companies have caught up and as US companies now seek growth in the EU. In our drive to promote the new economy in the EU, efficient and integrated capital markets which are both the objective and the consequence of European Economic and Monetary Union (EMU) will be essential. In particular, the increased availability of risk capital will be a key factor underpinning the development of information and communication technologies and fuelling the growth of innovative companies. The Community has at its disposal a full range of financial instruments to support private sector risk capital - national programmes, the Community budget and the EIB group. These instruments are capable of covering the innovation cycle from basic research to commercial launch. To ensure, however, that these instruments have the maximum impact, they are focused on clear cases of market weakness or failure. They complement and stimulate private sector, they do not replace it - and they adhere to commercial principles. The provision of public funds is only one element in developing EU risk capital. The main focus of EU actions has been, through EMU, to develop an economic environment in which risk capital markets function efficiently to raise both private supply of and demand for innovation finance. Though public funding has a role to play, this will be much less important than the role of financial-market integration at the EU level and improvements in the regulatory and tax environment at the national level.
6. There is a slight irony about the impact of the new economy, both in companies and in the opportunities for talented staff in the widest sense, but one which may well lead to the benefit of many of you who take up employment nationally or internationally in the service sector. The conventional concern was that technology would replace people. Instead the development of digital technology, the Internet etc, has created amongst many other valuable contributions, an awareness of companies need to attract and retain the services of the best talent if they are to succeed. This has lead to an increased trend for many major organisations, which are aware of how little organisations generally appreciate talent and knowledge - whether in companies or on university campuses - to recruit talented people, bidding up their value and rewards and selling their services back to the corporate world in different forms, as advisers, consultants, management buy-ours or, the most recent form, dot com start ups.

   The long standing policy in Ireland since the 1970's to invest more in people and in their education, more so perhaps than in the EU or internationally, has not only been enormously liberating and enriching for individuals, it has had a major impact on the economic and social development of the country overall by giving it a sustainable, competitive advantage and is one of the cornerstone's of the current success of the Irish economy.

7. Europe has been a crucial influence on and contributor to Irish economic and social development since entry into the Common Market in 1973. There is every reason to think that this will remain so. The introduction of the euro has added new dynamism to the process of financial market integration. This is currently posing new and somewhat unexpected challenges to policy makers and financial institutions as well as to individuals. This situation is nevertheless a most welcome improvement over the pre-EMU situation where EU countries needlessly suffered substantial costs through exchange rate crises and constraints. The associated fragmentation of European financial markets imposed major constraints on the EU economies through reduced liquidity reduced depth and reduced innovation. Until recently, the situation in Europe has contrasted sharply with the highly integrated financial markets of the United States. This is now changing through the twin establishment of the Single Market Programme and Economic and Monetary Union. The EU financial system is experiencing significant structural change. And the extent and pace at which the market is driving forward this process of change is remarkable. I need mention only the rapid development of the euro-denominated corporate bond market; the clear acceleration in the pace of consolidation of the banking sector; and the proposed links and alliances among national stock exchanges as evidence of that change.

   The weight of the euro area in the international economy and in trade has guaranteed that the euro is already one of the world's leading currencies; this of itself is no surprise. Though there has been much public discussion and misgivings about the current level of the euro-exchange rate, other more significant aspects of the euro have not been given the attention they deserve. The expansion of euro-denominated capital markets since the launch of the euro at the beginning of 1999 has exceeded all expectations. The euro has rapidly become an attractive alternative to the dollar, with international bond issuance split more or less evenly between the two currencies. Even more notable has been the extraordinary growth in the corporate bond sector. Here, euro-denominated issuance increased more than 300% in 1999 compared to 1998. Over time, corporate bond issuance is likely to increase steadily as budgetary consolidation results in reduced issuance by sovereign borrowers, which will facilitate a structural change towards a more securitised financial system in Europe and provide a major alternative to bank financing for the corporate sector, a very desirable trend as far as reducing the cost and improving the availability of finance for the development of European businesses is concerned.

8. I would like to tell you, if you do not already know, that one of your own, Professor David O'Mahony of the Economics department, is one of those leading international economists who, in the mid-1970's published the highly influential policy paper still known as the 'All Saint's Day Declaration' which set out the arguments for European Monetary Union. This document stands as a testimony not just to Dr O'Mahony personally but to the long-term involvement of UCC in key EU policy issues, an involvement I hope we will see enhanced further in the coming years.
9. Currently there are important debates and negotiations taking place within EU governments; in the European institutions and throughout the countries of the European Union on the further development of the EU. These debates and negotiations are very important for the future of economic, social and political development of all Candidate Countries from Central and Eastern Europe as well as to all other Member States of the EU and to Ireland. They also matter to you personally.

   Those who have been given the opportunity to shape the future of this country be it in commerce, in public service, at home or in the voluntary sector, have a big responsibility to ensure that our interests and values are fully promoted in the emerging EU architecture. As we look beyond today I would counsel that you should not underestimate the importance of or become apathetic about the EU - the shape of its institutions will determine the future in direct ways, touching our social and economy success. As you do that, remember that your parent's generation secured a place for Ireland in Europe, and has built successfully upon it in the intervening years. That is part of your inheritance. Don't let it wither; you as individuals as well as business people have a fundamental interest to ensure that the development of the EU continues in the harmonious and successful way that it has in the past. To do so, it is important that Ireland should become more involved in the future governance of the EU as whatever difficulties there may be, can only be resolved by discussion and negotiation. To paraphrase Plato's advice to Greek citizens in early times; "the penalty that good men pay for not being interested in politics is to be governed by men worse than themselves".

   Ireland has, as an EU country, an unrivalled relationship with the US in many ways, notably through historical links and through US investments which serve EU and world markets from Ireland. Many of you will have worked there. Many will have family and friends there - perhaps more so than in Luxembourg, or Germany or even France. The question nevertheless of whether we are closest to the EU or the US is not the core issue. Ireland is close to both but also has different interests and relationships with both. As is the case for all small, open trading economies, Ireland must seek to develop both these relationships to the maximum extent possible. The challenge is the same as in the past - to ensure that the freedom, the peace and the prosperity that both the EU and the US have created is protected and enhanced for ourselves and for those who come after us in the class of 2001 and beyond.

10. I will end with two personal comments. You have undoubtedly and will continue to invest in your professional development. The quality of life that you seek will not however be found through professional development alone, you will increasingly perceive as time passes that your social well-being, your family, and your values are equally important. It is therefore essential that you maintain a good balance between your professional and personal life as, without it, your sense of personal satisfaction at whatever you achieve will be much diminished.

    You have been privileged to live and work in the community of UCC for the last four years or so. Though you have undoubtedly worked hard for that privilege, the benefits which will accrue to you over many years will be considerably greater than the costs. It is therefore in your enlightened self-interest that you as Alumni should continue to support the College so that UCC remains the sustainable resource for Munster and for Ireland that it has been throughout its distinguished history. Recent President, Michael Mortell, Tadhg O'Tiardha and Michael McCarthy have done much to develop the capacity and resources of College, particularly so in the last 15 years. To do so, they had to win the financial support not just of government and industry but also of the Alumni, of whom you are now a part, who have an increasingly important role to play both in the financing of specific college activities but also in influencing the policies of College, a trend I am sure the Governing Body wishes to reinforce. Do not therefore cut your links with the College after today; rather support it financially from the fruits of your own future success.

Tá súil agam gur bhain sibh agus go mbainfidh sibh an-thairbhe as bhúr blianta anseo inár measc i UCC. Agus go n-éiri go geal libh ins an saol, pé Cuma é, atá romhaibh amach—Gura maith agaibh!