Addressing the north’s long-standing productivity gap will require a new strategic approach to policy-making, including closer inter-departmental co-ordination, and a long-term commitment to closing the productivity gap, according to researchers at Queen’s University Business School.
A new report - ‘NI Productivity 2040: Addressing Northern Ireland’s productivity gap for greater prosperity’ - will be released today at an event in Riddel Hall, one of a series of events to mark National Productivity Week across the UK.
It will analyses the reasons for the region’s problem of low productivity, and provides a roadmap for how the Stormont Executive can improve prosperity over the next 15 years.
The report was co-authored by Ruth Donaldson, Dr David Jordan, and Professor John Turner on behalf of the Northern Ireland Productivity Forum, based at Queen’s Business School. Its key findings include:
- Low productivity is deeply embedded in Northern Ireland’s economy and requires a co-ordinated, strategic policy approach to address this challenge.
- Northern Ireland’s productivity gap is a long-standing problem and will take time to improve, requiring policy interventions to be implemented and funded over several political mandates, with policies sequenced to maximise their effectiveness.
- The Executive must focus on removing the barriers to productivity growth, and work with stakeholders to boost productivity by 2040.
- Closing the gap will require long-term commitment and perhaps unpopular policies. A pro-productivity institution, such as a Productivity and Growth Board, would be essential to boost productivity and prosperity.
Ruth Donaldson, research associate at Queen’s Business School, said: “Low productivity is not a new problem for Northern Ireland, as it has persistently lagged behind the rest of the UK.
“Despite awareness of this issue, policy has so far failed to close the productivity gap. Our report identifies the core policy challenges and sets out a roadmap for what must be done differently to raise Northern Ireland’s productivity.”
Building on previous research by the NI Productivity Forum that identified the reasons for low productivity, the latest report provides practical steps for policy to close the productivity gap by 2040. It emphasises siloed policy-making as a barrier to effective policy action.
The analysis examines the current policy challenges faced in Northern Ireland, how these link to the various Executive departments and their delivery partners, as well as the interactions between the different policy challenges, highlighting their interconnected nature.
Dr David Jordan said: “Previous attempts to close Northern Ireland’s productivity gap have been hampered by siloed policy-making.
“Our analysis demonstrates that raising productivity requires a joined-up approach across multiple areas of policy, that brings together NI Executive departments and delivery partners to remove barriers to productivity growth.
“While policy has had success in some areas, the interactions we have identified between policies mean that a new long-term strategic approach is needed in order to see tangible change by 2040.”
Professor John Turner added: “A pro-productivity institution, such as a Productivity and Growth Board, would help the government to create and implement productivity improving policies. This would be an independent body that works closely with the Northern Ireland Executive.
“But to be successful it will require political commitment and close work across stakeholders.”
