Ireland in 2004 (Page 2)

Abstract

Ireland has emerged as one of the most globally competitive economies in the world. A combination of factors has turned the Irish economy into a 'Celtic Tiger'. These include tough cuts in government spending since the late 1980s, 'National wage partnership programmes' which fostered co- operative industrial relations, reduction in taxes, targeted Irish government programmes to attract foreign direct investment and financial support from the European Union. The return of the Fianna Fail (soldiers of destiny) and progressive democrats to the coalition government after the May 2002 parliamentary elections is seen by many as a vote of confidence in the centre-right policies of the previous administration. Economic growth slowed in the first nine months of 2003, compared with 2002. Investment, exports and imports showed negative growth. The manufacturing sector was the hardest hit. But Irish equities rebounded strongly in 2003, in line with developments elsewhere in Europe and north America. A surge in revenue towards the end of 2003, combined with stricter expenditure control, has ensured that the budget almost balanced for the full year.

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RECENT HISTORY

The Irish economy went from strength to strength in the 1970s, with the gradual freeing of trade and the diversification of Irish exports away from the UK, towards other European countries. In 1973, Ireland became a member of the European Economic Community (EEC) . This gave Ireland access to European markets, agricultural subsidies and capital. The surge of inward investment that followed Ireland's EU membership had a dramatic impact on the Irish economy.

The early 1980s marked a period of retrenchment. Employment in public services was frozen. Ireland did not make some of the costly political errors of continental Europe at that time, such as making unrealistic pension commitments and creating an overprotected labor market. In the late 1980s, social partnership agreements among employees, employers and government, kept the wage increase well below the European average while productivity grew at a rate significantly above the European average....

        Case Code   ECOA117
   Case Length    19 Pages
              Period    2004
 Organization    
        Pub Date     2004
Teaching Note    Not Available
     Countries    Ireland
      Industry   

Issues

Ireland, Country Report, Case Study.

Irish economy; European Union; Celtic Tiger; Foreign direct investment; Ango-Irish treaty; European economic community; Labour reforms in Ireland; Fianna Fail; Progressive democrats; Irish government; Irish industry; Foreign trade in Ireland; Irish Chambers of Commerce; Foreign investments in Ireland; Software industry in Ireland.

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.