A Roaring Tiger: Difference between revisions
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Economic Boom | |||
== Economic Boom == | |||
The economic boom of Ireland changed the country completely. In the past, it had been a predominantly agricultural country, and because of the boom Ireland became one of the leading software exporters in the world. Large software companies such as Dell, Intel, and Gateway became very interested in Ireland due to their young, well-educated, and English speaking labor force. One of the things that attracted these big companies was “the provision of subsidies and investment capital by Irish organizations such as IDA Ireland.” (Celtic Tiger-Wikipedia). Other things that were attractive to these businesses were the fact they were members of the European Unions, there were low wages, they had government grants, and they had low tax rates. Another thing was the fact the Irish time zone was compatible with the US time zone. When the workers in the US were sleeping, their Irish counterparts were working. This fact was of particular importance to companies with large legal and financial departments. Also little government intervention was important because it allowed for a stable operating environment for companies. | The economic boom of Ireland changed the country completely. In the past, it had been a predominantly agricultural country, and because of the boom Ireland became one of the leading software exporters in the world. Large software companies such as Dell, Intel, and Gateway became very interested in Ireland due to their young, well-educated, and English speaking labor force. One of the things that attracted these big companies was “the provision of subsidies and investment capital by Irish organizations such as IDA Ireland.” (Celtic Tiger-Wikipedia). Other things that were attractive to these businesses were the fact they were members of the European Unions, there were low wages, they had government grants, and they had low tax rates. Another thing was the fact the Irish time zone was compatible with the US time zone. When the workers in the US were sleeping, their Irish counterparts were working. This fact was of particular importance to companies with large legal and financial departments. Also little government intervention was important because it allowed for a stable operating environment for companies. | ||
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Government Criticisms | |||
Although there was a lot of good that came from the boom, there are still criticisms of how the government handled the situation. For example, health services hardly had any reform when it was clearly needed because there were always long waiting lists, bed shortages, and understaffing. Despite the fact that the health budget was doubled, there was little change. Another example is that all systems of transportation were monopolized. The main airline company was Aer Rianta, the main bus company was Bus Eireann, and the main railway company was Iarnrod Eireann. All of these were highly inefficient. One last example is that the roads are always congested due to so many more commuters. In the early 2000s, there was construction of new roads, but it was more expensive than what had been expected. | Although there was a lot of good that came from the boom, there are still criticisms of how the government handled the situation. For example, health services hardly had any reform when it was clearly needed because there were always long waiting lists, bed shortages, and understaffing. Despite the fact that the health budget was doubled, there was little change. Another example is that all systems of transportation were monopolized. The main airline company was Aer Rianta, the main bus company was Bus Eireann, and the main railway company was Iarnrod Eireann. All of these were highly inefficient. One last example is that the roads are always congested due to so many more commuters. In the early 2000s, there was construction of new roads, but it was more expensive than what had been expected. | ||
Revision as of 22:23, 29 April 2006
Economic Boom
The economic boom of Ireland changed the country completely. In the past, it had been a predominantly agricultural country, and because of the boom Ireland became one of the leading software exporters in the world. Large software companies such as Dell, Intel, and Gateway became very interested in Ireland due to their young, well-educated, and English speaking labor force. One of the things that attracted these big companies was “the provision of subsidies and investment capital by Irish organizations such as IDA Ireland.” (Celtic Tiger-Wikipedia). Other things that were attractive to these businesses were the fact they were members of the European Unions, there were low wages, they had government grants, and they had low tax rates. Another thing was the fact the Irish time zone was compatible with the US time zone. When the workers in the US were sleeping, their Irish counterparts were working. This fact was of particular importance to companies with large legal and financial departments. Also little government intervention was important because it allowed for a stable operating environment for companies.
Other Economic Results
Along with the increase in software production, other things happened because of the boom.
- Disposable income sky-rocketed. It was now normal to see expensive cars and name-brand labels
- Unemployment fell from 18% to 4.9%
- Average industrial wages grew at a very high rate
- Inflation was at or around 5%. This caused things to become more expensive especially the grocery industry
- Public debt was cut radically allowing it to be one of the lowest in Europe
- Ireland’s infrastructure was becoming more modern. There was a creation of new monuments, better roads, and more trees and benches to make Ireland a more attractive place.
Social Results
Not only were there economic results, there were social results as well.
- Ireland’s trademark trend of emigration was stopped and even reversed. People were now immigrating to Ireland which caused an expansion of multiculturalism. Also, 10% of the people of Ireland were not from Ireland or the UK.
- There was a rise in crime level, especially among youth due to alcohol related violence
- Older generations felt that the culture of Ireland was being lost because of the modernization that was created by the boom.
- In the past, Ireland used to have low confidence, but now people are quick and eager to start new businesses.
- There was an increase in the urbanization: many people left the countryside and came to live and work in the cities.
- Celtic Tiger helped the Peace Progress in Northern Ireland. Now an end to the troubles is closer than it was in the 1980s.
Government Criticisms
Although there was a lot of good that came from the boom, there are still criticisms of how the government handled the situation. For example, health services hardly had any reform when it was clearly needed because there were always long waiting lists, bed shortages, and understaffing. Despite the fact that the health budget was doubled, there was little change. Another example is that all systems of transportation were monopolized. The main airline company was Aer Rianta, the main bus company was Bus Eireann, and the main railway company was Iarnrod Eireann. All of these were highly inefficient. One last example is that the roads are always congested due to so many more commuters. In the early 2000s, there was construction of new roads, but it was more expensive than what had been expected.
Economic downturn
From 2001 to 2003 Ireland’s Celtic Tiger came to a sudden stop after nearly half a decade of increasing growth. Much of the cause for this downturn was the fact that Ireland had very close economic ties to the US which also experienced an economic slowdown. Another reason for the downturn was that there was a large drop of investment in the TI industry. This was very hard for Ireland because they were the leading exporter of software at this time. September 11th along with the foot and mouth disease were causes of the downturn because high-spenders from Britain and the US were not coming into the country, which in turn hurt tourism tremendously. Other factors that caused the downturn were that companies started to move to Eastern European countries or Asian countries such as China because the wages were increasing and there was a loss of competitiveness. Also, the value of the Euro was rising.
Economic Makeup Today
The Irish economy today is made up of three sectors, the primary, secondary, and tertiary. The primary sector which accounts for 5% of Irish GDP is primarily made up of cattle grazing, dairy production, fishing, tillage farming, and forestry. It also accounts for the mining of zinc and lead as well as natural gas exploration. Also, peat exploitation is a source of large employment opportunities and is a valuable contribution to energy needs. The secondary sector accounts for 46% of Irish GDP and it involves high tech companies such as Dell, Intel, Pfizer, and IBM. This sector manufactures products such as computers, computer parts, confectionary, beer, high quality glass and crystal, software, and machinery. Unfortunately, there is now large competition from Eastern Europe and Asian countries in the lower skill levels. The tertiary sector is the largest driver of Ireland’s economic growth accounting for 49% of Irish GDP. Its industries are accountancy, legal sector, call centers and customer service operations, finance and stock broking, catering, and tourism. Many companies put their customer service operations in Ireland because they are young, can speak English, and are well-educated. Tourism is very important to Ireland since it attracts five million people annually.
