The need to open up Northern Ireland to the global economy and to encourage innovation there is at the heart of proposals by the Irish and British governments to support and strengthen North-South co-operation. Economic and social collaboration are seen as essential elements in the political development of Northern Ireland, with the potential to create a truly all-island economy.
There is a happy logic about that proposition, in that it offers real monetary and social benefits to both communities. But traditional attitudes and suspicions die hard, especially while wrangling over executive power-sharing and acceptance of the Police Service of Northern Ireland continue to dominate the political agenda.
An anxiety to break new ground and to involve all the political parties was heralded by Taoiseach Bertie Ahern last weekend when he supported a reduction in corporation tax rates for the North. Later, Northern Secretary Peter Hain appealed to the parties to present a common front in discussions with British chancellor of the Exchequer Gordon Brown on the issue. There is no doubt a reduction in corporation tax would stimulate growth, but there are major stumbling blocks. Should it be granted, Scotland would almost certainly demand a similar concession. And the EU Commission, pressurised by France and Germany, could well disallow it.
Irrespective of the outcome, the governments have committed themselves to co-operate on a range of regulatory issues "in order to develop a truly all-island economy". That will involve co-operation on matters of energy, transport and telecommunications; on education and training; on health and education; trade and investment and research and development.
This political initiative reflects the unsustainable nature of a highly-subsidised Northern Ireland economy, where public service employment provides more than half of the jobs and wide-ranging reforms are looming. Any "peace dividend" from the British exchequer will almost certainly involve a move away from traditional fiscal supports. And the Democratic Unionist Party, in particular, is being chivvied into making common cause with Sinn Féin in advancing the long-term economic interests of Northern Ireland. That may become a central element in any restored institutions.
Creating a socially inclusive all-island economy is a laudable objective. But the difficulties are immense. This State is now one of the most successful and open economies in the world, with the result that more than a quarter of a million immigrants work here. They are generally welcomed. The contrast with Northern Ireland is stark, where racially-motivated attacks on ethnic groups and individuals are so prevalent that the Church of Ireland Primate Robin Eames made a special plea for society there to confront sectarian and racist attitudes. While such ingrained attitudes persist towards anyone who is "different", rapid economic and social progress will remain an aspiration.