A Roaring Tiger: Difference between revisions
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The | The beginning of the 1990's brought with it a positive outlook for the Irish economy. By opening it's doors to foreign investors, Ireland made the shift from an agricultural lead economy to one lead by industry. It seemed that Ireland had finally caught up in the game of industrialization. Once the "Celtic Tiger" was underway, Ireland quickly became one of the leading software exporters in the world. Large software companies such as Dell, Intel, and Gateway saw Ireland as ripe land for investing where they could expand their companies abroad. American companies became particularly interested in Ireland due to its young, well-educated, English speaking labor force. American companies also favored the Irish time zone as it is compatible with the US time zone (Ireland is 5 hours ahead of the U.S). This meant that when workers in the U.S. were sleeping, their Irish counterparts were working. This fact was of particular importance to companies with large legal and financial departments. Also, the fact that there was little government intervention was important because it allowed for a stable operating environment for companies. What was also very attractive to foreign investors was Ireland's membership in the European Union. Investors, especially American firms, saw Ireland as a way of gaining access to the large European markets. Ireland benefited from it's membership in the EU as its economy experienced low wages, low tax rates, and received government grants. | ||
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Not only were there economic results, there were social results as well. | 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 | *Ireland’s trademark trend of emigration was stopped and even reversed. People were now immigrating to Ireland which caused an expansion of multiculturalism, with 10% of the Ireland's population not from Ireland or the UK. | ||
*There was a rise in crime level, especially among youth due to alcohol related violence | *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. | *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 | *In the past, Ireland suffered from a lack of confidence, but as the economy florished, people became 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. | *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 | *The Celtic Tiger helped the Peace Progress in Northern Ireland. Now the end to the conflict is closer than it was in the 1980's. | ||
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===== Government Criticisms ===== | ===== Government Criticisms ===== | ||
Although | Although many of the results of the Celtic Tiger were positive, there are still criticisms of how the government handled the situation. For example, health services received very little reform as long waiting lists, bed shortages, and understaffing was not unusual. Despite the fact that the health budget was doubled, there was little noticable change to health service facilities. Another negative effect of the economic boom is that all of the transportation systems were monopolized. For instance, the main airline company, Aer Rianta, the main bus company, Bus Eireann, and the main railway company, Iarnrod Eireann were highly inefficient. Roadways also suffered as they were and still are congested due to large amounts of commuters. In the early 2000's, there was construction of new roads, but it was more expensive than what had been expected. | ||
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===== Economic Downturn ===== | ===== 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 | 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 U.S., 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 U.S. were not traveling to 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. | ||
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== Economic Makeup Today == | == 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 | 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 and only 8% of Irish employment, is primarily made up of cattle grazing, dairy production, fishing, tillage farming, and forestry and accounts for the mining of zinc and lead as well as natural gas exploration. Peat exploitation is also a source of large employment opportunities and is a valuable contribution to energy needs. The '''''secondary sector''''' accounts for 46% of Irish GDP and 29% of Irish employment. This sector is comprised of 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 of manufacturing, such as confectionery manufacturing. The '''''tertiary sector''''' is the largest driver of Ireland’s modernized economic growth, accounting for 49% of Irish GDP and 64% of Irish employment. Its industries include accountancy, legal sector, call centers and customer service operations, finance and stock broking, catering, and tourism. Many U.S. companies establish their customer service operations in Ireland because employees are young, English speaking, and are well-educated. Tourism is very important to the Irish economy since it attracts five million people annually and employs over 100,000 individuals (site). | ||
Revision as of 01:48, 30 April 2006
Economic Boom
The beginning of the 1990's brought with it a positive outlook for the Irish economy. By opening it's doors to foreign investors, Ireland made the shift from an agricultural lead economy to one lead by industry. It seemed that Ireland had finally caught up in the game of industrialization. Once the "Celtic Tiger" was underway, Ireland quickly became one of the leading software exporters in the world. Large software companies such as Dell, Intel, and Gateway saw Ireland as ripe land for investing where they could expand their companies abroad. American companies became particularly interested in Ireland due to its young, well-educated, English speaking labor force. American companies also favored the Irish time zone as it is compatible with the US time zone (Ireland is 5 hours ahead of the U.S). This meant that when workers in the U.S. were sleeping, their Irish counterparts were working. This fact was of particular importance to companies with large legal and financial departments. Also, the fact that there was little government intervention was important because it allowed for a stable operating environment for companies. What was also very attractive to foreign investors was Ireland's membership in the European Union. Investors, especially American firms, saw Ireland as a way of gaining access to the large European markets. Ireland benefited from it's membership in the EU as its economy experienced low wages, low tax rates, and received government grants.
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, with 10% of the Ireland's population 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 suffered from a lack of confidence, but as the economy florished, people became 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.
- The Celtic Tiger helped the Peace Progress in Northern Ireland. Now the end to the conflict is closer than it was in the 1980's.
Government Criticisms
Although many of the results of the Celtic Tiger were positive, there are still criticisms of how the government handled the situation. For example, health services received very little reform as long waiting lists, bed shortages, and understaffing was not unusual. Despite the fact that the health budget was doubled, there was little noticable change to health service facilities. Another negative effect of the economic boom is that all of the transportation systems were monopolized. For instance, the main airline company, Aer Rianta, the main bus company, Bus Eireann, and the main railway company, Iarnrod Eireann were highly inefficient. Roadways also suffered as they were and still are congested due to large amounts of commuters. In the early 2000's, 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 U.S., 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 U.S. were not traveling to 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 and only 8% of Irish employment, is primarily made up of cattle grazing, dairy production, fishing, tillage farming, and forestry and accounts for the mining of zinc and lead as well as natural gas exploration. Peat exploitation is also a source of large employment opportunities and is a valuable contribution to energy needs. The secondary sector accounts for 46% of Irish GDP and 29% of Irish employment. This sector is comprised of 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 of manufacturing, such as confectionery manufacturing. The tertiary sector is the largest driver of Ireland’s modernized economic growth, accounting for 49% of Irish GDP and 64% of Irish employment. Its industries include accountancy, legal sector, call centers and customer service operations, finance and stock broking, catering, and tourism. Many U.S. companies establish their customer service operations in Ireland because employees are young, English speaking, and are well-educated. Tourism is very important to the Irish economy since it attracts five million people annually and employs over 100,000 individuals (site).
