1. Discuss the contention that Ireland is Europe's poster child for
globalisation, neoliberalism and austerity.
Introduction
It can be argued that Ireland is and is not Europe’s poster child for globalisation, neoliberalism
and austerity. The country benefited from its Celtic Tiger boom which started in 1993 and lasted
until the late 2000s. During the 1980s its economy went from being Keynesian to strongly
reliant on neoliberalism ideologies; over a span of 20 years, large investments into the economy,
in the form of loans, allowed Ireland to build the necessary infrastructure to attract foreign
technological companies. However, what followed after the 2008 financial crisis also shows that
the development of Ireland was heavily flawed due to the longevity of its success being
unsustainable. The following subheadings will now answer this question in more detail.
Why is this Statement True?
Ireland was first introduced to the global economy in the 1960s by Lemass and Whittaker. This
transformed the country from being protectionist and rural to competitive and adopting a free
market. They began training their workforce and constructing an infrastructure which would
attract foreign investment, especially from tech companies. They managed to attract companies
such as Microsoft and Intel with the help of their infrastructure and also tax incentives.
Throughout the Celtic Tiger boom factories continued to move into Ireland which resulted in the
country having one of the highest employment rates and GDP per capita in Europe; It was
evident that the Irish Economy heavily relied on TNCs (O’Flynn, 2013).
Neoliberal policies were first introduced throughout the 1980s. They resulted in the deregulation
of the economy, privatisation of public goods and direct taxes being kept low to attract foreign
investors. The country also implemented a “laissez faire” planning system and reduced capital
gains taxes. It was evident that Ireland aimed to grow its economy by offering global
technological companies an incentive to invest in their economy. During the second half of
1990s Ireland benefited in the form of national wealth, employment and an increase in
disposable income (Norris, 2013). This was largely due to Ireland being the hub for 20% of the
USA’s investments in Europe. Due to the vast amount of foreing direct investments, Ireland
prioritised a property led market to continue to build the infrastructure for more investments.
Furthermore, individuals’ higher disposable incomes and low interest mortgages allowed for
people to move into the housing market. Unlike other countries at the time who were suffering
from the social disadvantages of neoliberalism, Ireland was going through its “Celtic Tiger
boom”. This period is believed to have taken place due to Ireland’s industrialisation period
creating many jobs combined with the precarious housing market boom.
globalisation, neoliberalism and austerity.
Introduction
It can be argued that Ireland is and is not Europe’s poster child for globalisation, neoliberalism
and austerity. The country benefited from its Celtic Tiger boom which started in 1993 and lasted
until the late 2000s. During the 1980s its economy went from being Keynesian to strongly
reliant on neoliberalism ideologies; over a span of 20 years, large investments into the economy,
in the form of loans, allowed Ireland to build the necessary infrastructure to attract foreign
technological companies. However, what followed after the 2008 financial crisis also shows that
the development of Ireland was heavily flawed due to the longevity of its success being
unsustainable. The following subheadings will now answer this question in more detail.
Why is this Statement True?
Ireland was first introduced to the global economy in the 1960s by Lemass and Whittaker. This
transformed the country from being protectionist and rural to competitive and adopting a free
market. They began training their workforce and constructing an infrastructure which would
attract foreign investment, especially from tech companies. They managed to attract companies
such as Microsoft and Intel with the help of their infrastructure and also tax incentives.
Throughout the Celtic Tiger boom factories continued to move into Ireland which resulted in the
country having one of the highest employment rates and GDP per capita in Europe; It was
evident that the Irish Economy heavily relied on TNCs (O’Flynn, 2013).
Neoliberal policies were first introduced throughout the 1980s. They resulted in the deregulation
of the economy, privatisation of public goods and direct taxes being kept low to attract foreign
investors. The country also implemented a “laissez faire” planning system and reduced capital
gains taxes. It was evident that Ireland aimed to grow its economy by offering global
technological companies an incentive to invest in their economy. During the second half of
1990s Ireland benefited in the form of national wealth, employment and an increase in
disposable income (Norris, 2013). This was largely due to Ireland being the hub for 20% of the
USA’s investments in Europe. Due to the vast amount of foreing direct investments, Ireland
prioritised a property led market to continue to build the infrastructure for more investments.
Furthermore, individuals’ higher disposable incomes and low interest mortgages allowed for
people to move into the housing market. Unlike other countries at the time who were suffering
from the social disadvantages of neoliberalism, Ireland was going through its “Celtic Tiger
boom”. This period is believed to have taken place due to Ireland’s industrialisation period
creating many jobs combined with the precarious housing market boom.
