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Dublin anger over FT's 'Banana Republic' remarks
Tuesday, 23 December 2008
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Recent banking scandals ensured the Republic's international reputation took a hammering.
However, Dublin Finance Minister Brian Lenihan yesterday angrily hit-out at report's portraying the country as "a banana republic".
He claimed Ireland is no different from other countries caught up in the global financial difficulties including the UK.
The Financial Times labelled Ireland a "banana republic" after the Government was forced to recapitalise its major banks -- just days after a controversy erupted over loans to one senior Irish bank boss that were shuttled between two financial institutions for almost eight years.
But Mr Lenihan insisted the description was unwarranted and unfair.
"I don't accept that (claim) for one minute," he said.
"If the Financial Times took the mud out of their own eyes as to what has happened in the UK in the last year and where the Royal Bank of Scotland, one of the largest banks in the country, had been taken under effective State control -- I don't think the problems in the banking sector are unique to any one country."
Minister Lenihan said very few countries have been left unscarred by the financial fall-out from the problems initially sparked by US sub-prime lending.
Regulatory
"Problems with regulatory control, problems with reckless lending, problems with paper transactions being misrepresented as real money transactions -- these have characterised the world banking system," he said.
"There is nothing unique in what has happened in this country -- and, indeed, we haven't had all of the failings that have been demonstrated in some overseas banks.
"That is not a particular cause for pride but it doesn't entitle us to be so described by the Financial Times," he said.
Minister Lenihan said that Ireland would continue to respond to the financial challenges in a prudent, effective manner that would ensure confidence was retained in the Irish economy and financial services sector.
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In the mid-80s I heard a future U.S. congressman refer to the Irish state as a "potato republic", which is a much more accurate term for Southern Ireland because potatoes are far more plentiful there than bananas.
Posted by Seán MacCurtain | 30.12.08, 22:56 GMT
The FT has no right to cry "banana republic" to such a close neighbour especially when the british regulatory machinery has failed so dismally of recent. However the Republic of Ireland is and always has been corrupt in government, business and planning to name but a few. And now banking!
Posted by Raymond | 26.12.08, 10:05 GMT
So the Republic of Ireland is no different to the rest of the world.
Name any other country where the CEO of a bank has loans of 87M euro and hides them from the shareholders and any other country where the financial regulatory authority does not seem to think this relevant enough to report to the minister for finance.
Messrs Lenihan and Cowen are a joke.
Funny that the lending that the Anglo Irish Bank did was mainly to building developers........now guess what political party most of these developers belong to?
Posted by Anton Good | 23.12.08, 21:31 GMT
A typical definition of a banana republic is:
'........ a pejorative term for a small country that is politically unstable, dependent on limited agriculture (e.g. bananas), and ruled by a small, self-elected, wealthy, and corrupt clique.'
Sounds about right to me!
Posted by robbo | 23.12.08, 18:51 GMT
It does not matter who or whom uttered the term banana rebublic because it is true. I lived in north Dublin slums in the 70's, 80's and early 90's and seen how corruption in the banana republic kept people living in poverty. This loans scam is just one aspect of the corruption.
Posted by Declan Hickey | 23.12.08, 17:24 GMT
when you have coruption in government and coruption in banks then its a banana republic , look at fianna fail , look at the names we know them from years gone by. its a party handed down from father to son from relative to relative , friend to friend steeped in coruption , charles haughey a disgraced politician who was given a state funeral ( a bananna republic ) bertie ahern resigned from office amid scandal concerning his personel finances (a bananna republic ) the repuation of the country is tarnished by rogues and scoundrels. the country therefore qualifys as a bunanna republic
Posted by hg | 23.12.08, 16:36 GMT
How come every time light is shone on the reality of the economic woes facing the Republic and the widespread corruption there, somehow they always seem to either blame the British or try (unsuccessfully, when the truth is outed) to compare their situation favourably with that in Britain? I thought the Irish were a confident, independent nation, so why do they always seek comfort in blaming the Brits for all their problems? Grow up and stand up on your own two feet!
Posted by Steve | 23.12.08, 16:01 GMT
It was a sloppy phrase and probably shouldn't have been used by a quality newspaper. However, the underlying point is valid. The Republic of Ireland has in many ways benefitted from bubble economics in recent years and will pay the price more than most. Spain is in the same category and so, to be fair, is the UK.
Sadly, despite all the economic progress made in the Republic in the past decade, there isn't really a completely solid underlying base. There has been too much reliance on property/construction and infrastructure. The country is certainly not alone in its woes but it will be one of the worst hit.
Posted by Jonathan | 23.12.08, 14:25 GMT
It's a bit rich of the FT to lord it over on the Irish who have done the right thing to bolster their banking sector, but typical of British establishment highbrow hypocracy tripe, with racist undertones.
Cowen did not even mention the UK takover of the Northern Rock Bank, but then why should hard facts be brought to bear on a readership that needs comfort for their own screwups...
Posted by Compos Mentis | 23.12.08, 11:49 GMT