How to Ireland go from being one of Europe's poorest countries...?

Question

Into a stinking rich country with the 4th highest standard of living in the world, just below Australia and some scandinavian coutries, all within 15 years. This dramatic turn around doesn't make sense to me.

Answer 1

In a nutshell.....Ireland joined the EU, which improved it's GDP.  Low corporate taxes provided incentive for large international corporations to set up shop in Ireland, bringing money into the country and decreasing unemployment.  Expansion improved its construction sector...again providing jobs.  New developments with countries to make it more desirable to move to Ireland and no property tax??  Am I off on that one?  Great for Ireland, I hear it is beautiful....wouldn't mind living there myself, except the sun doesn't shine very much, does it?

Answer 2

Rossie, the windbag above, is basically correct. He unfortunately neglected to mention that around the early nineties the personal income tax was lowered which increased spending money and became a tremendous boost to the Economy. The rest is history.

Answer 3

There are a couple of reasons:

1.Taxation in ireland during the mid 1980s ran at approx 58% meaning the government were taking in most of the money the ordinary people earned at the time and then saving this money for the future.

2.In 1987 the Irish punt had to be seriously devalued which resulted in a plethora of international companies from the USA, UK, Germany and Japan entering the country.  In addition most of these international companies were given huge grants to setup and tax-free status which allowed the republic of Ireland to become the european headquarters for alot of the fortune 500 companies.

3.Grants from the EU have improved the infrastructure and made Irish farmers stinking rich.

4.Successive governments have followed the lead of the predecessors (policies put in place by one government would be worked on by the new government) and worked closely with their predecessors to build a better stronger Ireland.

5.Free Third level education has meant that the republic now has one of the most highly educated populations/workforces on planet earth.

6.Ireland joining the European Central Bank has meant that the ordinary public have been able to spend without the worry of the Irish government raising interest rates  (Irish public borrowing went out of control circa 1995-1999, normally in that situation the Irish government would have raised interest rates to counteract this but they don't have the power anymore due to the European Central Bank)

7.Ireland speaks "English" the universal world language and its the first port of call from international companies to setup.

Answer 4

It was just waiting to happen. The resources were there - the youngest population in Europe. It was a poor country due to years and years of repression. History repeating.

Answer 5

two words, darling: CELTIC TIGER. it's a nickname for ireland's rapid economic growth. it began in the late 80s/early 90s. as a result, people are ferrying their kids to rugby practice in SUVs, then returning home to their €2.6m gaff in dalkey.

Answer 6

Rossie is right

and luck of the irish is if something can go wrong it will

Answer 7

Sure god love us, weren't we due a bit of good fortune after all the years of pullin and drawin and scrapin, and the cold and the mud and the damp and the famine and the black n' tans?

Answer 8

It the luck of the Irish lol ☺

Answer 9

Our american exiles in the form of economic migrants from the years 1845 onwards(famine) never forgot us, large investments from american multinationals coupled bit tax incentives helped fuel the start of the economic boom.

There are many factors, abolition of 3rd level fees, tax cuts,EU,

The potential was always there, some would say that we were buliding on this since the foundation of the state in 1922. We are a relatively young country so we could use the mistakes of others to build on.

Education has always been a valuable comodity in ireland since the 4th century, when our monks left ireland to re- enlighten europe and keep education in europe alive during the dark ages

edit, The fact that we are a neutral country who dosent spend their wealth on useless wars, means that there is alot more money to go around (no offence to the wonderful job our army does in peace keeping missions, a credit to our country to keep the peace and not enforce it)

Neutral countries can redistribute their spending, look at switzerland.

Answer 10

the Irish people work very hard and the government encouraged industries into the country