Ireland 2

Ireland

Large-scale emigration marked most of the post-WWII period (particularly during the 1950s and 1980s), but beginning in 1987 the economy improved, and the 1990s saw the beginning of substantial economic growth. This period of growth became known as the Celtic Tiger. The Republic’s real GDP grew by an average of 9.6% per annum between 1995 and 1999, in which year the Republic joined the euro. In 2000, it was the sixth-richest country in the world in terms of GDP per capita. Historian R. F. Foster argues the cause was a combination of a new sense of initiative and the entry of American corporations. He concludes the chief factors were low taxation, pro-business regulatory policies, and a young, tech-savvy workforce. For many multinationals the decision to do business in Ireland was made easier still by generous incentives from the Industrial Development Authority. In addition European Union membership was helpful, giving the country lucrative access to markets that it had previously reached only through the United Kingdom, and pumping huge subsidies and investment capital into the Irish economy.

Modernization brought secularization in its wake. The traditionally high levels of religiosity have sharply declined. Foster points to three factors: Irish feminism, largely imported from America with liberal stances on contraception, abortion, and divorce undermined the authority of bishops and priests. Second, the mishandling of the pedophile scandals humiliated the Church, whose bishops seemed less concerned with the victims and more concerned with covering up for errant priests. Third, prosperity brought hedonism and materialism that undercut the ideals of saintly poverty.

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Financial Crisis Impact

The financial crisis that began in 2008 dramatically ended this period of boom. GDP fell by 3% in 2008 and by 7.1% in 2009, the worst year since records began (although earnings by foreign-owned businesses continued to grow). The state has since experienced deep recession, with unemployment, which doubled during 2009, remaining above 14% in 2012.

Geography:

The state extends over an area of about five-sixths (70,273 km2 or 27,133 sq mi) of the island of Ireland (84,421 km2 or 32,595 sq mi), with Northern Ireland constituting the remainder. The island is bounded to the north and west by the Atlantic Ocean and to the northeast by the North Channel. To the east, the Irish Sea connects to the Atlantic Ocean via St George’s Channel and the Celtic Sea to the southwest.

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Topographic Map of Ireland

The western landscape mostly consists of rugged cliffs, hills and mountains. The central lowlands are extensively covered with glacial deposits of clay and sand, as well as significant areas of bogland and several lakes. The highest point is Carrauntoohil (1,038 m or 3,406 ft), located in the MacGillycuddy’s Reeks mountain range in the southwest. River Shannon, which traverses the central lowlands, is the longest river in Ireland at 386 kilometres or 240 miles in length. The west coast is more rugged than the east, with numerous islands, peninsulas, headlands and bays.

Economy:

Ireland is an open economy (6th on the Index of Economic Freedom), and ranks first for “high-value” foreign direct investment (FDI) flows. Using the metric global GDP per capita, Ireland ranks 5th of 187 (IMF) and 6th of 175 (World Bank). The alternative metric modified Gross National Income (GNI) is intended to give a more accurate view of “activity in the domestic economy”. This is particularly relevant in Ireland ‘s small globalised economy, as GDP includes income from non-Irish owned companies, which flows out of Ireland. Indeed, foreign multinationals are the driver of Ireland’s economy, employing a quarter of the private sector workforce, and paying 80% of Irish business taxes. 14 of Ireland’s top 20 firms (by 2017 turnover) are US-based multinationals (80% of foreign multinationals in Ireland are from the US; there are no non-US/non-UK foreign firms in Ireland’s top 50 firms by turnover, and only one by employees, that being German retailer Lidl at No. 41).

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