Celtic Moment

How did the socio-political instability in Northern Ireland slow down its economic growth until 1998?

Originally posted 2011-05-24 20:34:57.

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In the following video Karen Coleman of KCWTV asks if it’s possible to rescue the Irish economy from economic oblivion. Both Donal Donovan [a former deputy director with the IMF] and Peter Mathews, Fine Gael TD and banking and financial commentator, give their views on what can be done to bring Ireland back from the brink.

For more news visit ☛ english.ntdtv.com The waiting is almost over in Ireland. The country’s finance minister took to the airwaves to announce that he would recommend that Ireland seek a bailout from international lenders. [RTE Reporter] “It is five past one, you are listening to this week on RTE Radio one and now Finance Minister Brian Lenihan joins us in studio. Are we about to formally apply for an EU/IMF loan? [Brian Lenihan, Irish Finance Minister]: “Well as you know last Tuesday, the government agreed with our EU partners that the government would have an intensive focused consultation about the difficulties in the Irish banking sector and the difficulties in financing the Irish state. Those discussions concluded yesterday evening. I reviewed the discussion with my own officials, I met the representative of the different international organizations involved and there will be a meeting of the government this afternoon and I will be proposing to my colleagues that we should formally apply for a program.” The finance minister also said the amount of the loan would not be a quote “three figure sum,” knocking down a report Sunday that suggested Ireland would need as much as 120 billion euros. Sources told Reuters that Ireland may need 45-90 billion euros, depending on whether it needs help only for its banks or to cover general government spending as well. As well as a bank plan, the government is expected to unveil details next week of a four-year austerity plan to …

Alex breaks down the globalist plans to finally bring down ireland in one big economic implosion. www.infowars.com www.prisonplanet.tv

Ireland saw rapid growth in the past 15 years, but is now struggling with huge debt. The country says it has funding until June next year, but analysts say it could need a bailout of up to 110 billion dollars. Even the possibililty that Ireland might default is a mighty comedown for the former Keltic Tiger, so-called for its powerful growth. This was a country where most enjoyed the boom — now the tiger is dead — everyone is going to share the pain. Al Jazeera’s Alan Fisher has more from the capital Dublin

Poem below to explain question

Do you remember, long ago, the story that I will now tell?
About the kings and queens, a land incrusted with Hell,
Of the chieftainess and chieftains that cried alone-
In tents and wilden ways,
Hollowed and cold,
Their burning homes their graves.

Do we now forget the past?
Store her in torn plays,
Riped up books,
And banned pictures caged.

Left on a bookshelf to grow old,
Dust upon her pages,
Legends, dying, shattered souls,
They say the times are changing,
Can we remain strong?
May we not result to riots?
Instead turn to song.

Someday we shall have our own King and Queen,
But they won’t carry titles so crude,
The cards are changing roles,
The joker is no longer the fool.

Yet the card we love the most,
Is not of diamonds or spades,
Nor hearts or any other made,
Neither aces that stand alone,
The best cards of all,
Are the cards that never fold?

By Crazygirl

P.S- Could you title it for me?

Cheers for any answers

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The Irish government has finally revealed the full cost of the Celtic Tiger years. read more

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For most of the past 300 years or so Ireland has had the dubious distinction of being a country more known for the hardships suffered by its inhabitants than for its beautiful countryside. While people in other parts of the United Kingdom and in Europe enjoyed a relatively high standard of living Ireland lagged far behind. Up until the early 1970’s the average income in Ireland was approximately one half of that of the rest of the UK. Over the next 35 years that status would change dramatically.

Today Ireland is rated one of the best countries in the world in which to live. Ireland boasts the fourth highest gross domestic product per person and very low unemployment. University tuition is free and there are a high percentage of skilled positions available.

How did Ireland accomplish such a dramatic turnaround?

New Economic Policies

Economists who have analyzed the emergence of the “Celtic Tiger” (a popular nickname for this period of unprecedented economic growth) have identified economic policies that encouraged growth. Beginning in the 50’s and 60”s Ireland began to shift away from protectionism and started to plan long-term for expansion and to increase international trade. Corporate tax rates were lowered and tax incentives were offered to foreign investors. Initiatives to expand exports were adopted.

In the 70’s the currency was strengthened and stabilized with Ireland’s entry into the EU. EU membership also provided Ireland access to substantial subsidies from France and Germany which was invested into public works projects to improve and expand infrastructure and education. Ireland now had greatly expanded access to European markets and began to increase exports. As its economy began to respond, Ireland focused on lowering its public debt and eventually achieved a 35% debt ratio, lower than most of other countries in the EU. As her financial position improved Ireland initiated several new programs that were aimed specifically at attracting high tech businesses and other growth industries. Ireland now offered an unbeatable combination of stability, favorable tax and trade policies, and a well educated English speaking labor force available at relatively low wages. This brought in employers from all over the world to do business in Ireland. By the end of the 90’s unemployment had fallen from 18% to 4%.

Ireland is not the only country to follow this basic formula for economic expansion (think of China, Brazil, Russia, India, and Mexico). Yet Ireland seemed to reap much higher dividends than most of the other counties adopting a similar approach. Looking at other changes in Irish society that occurred in concert with the changes in economic policy reveals that other factors may have played a critical role in the phenomenal success of the Celtic Tiger expansion.

Long-Term Planning and Investment in Basic Infrastructure

It is important to note that Ireland committed to a long-term plan for growth nearly 20 years before the Celtic Tiger expansion really took off. Ireland was willing to commit to new economic policies and maintain fiscal discipline for many years before substantial results were forthcoming, although there were clear signs of growth after the first five year plan was implemented. Ireland also invested for the long-term by initiating many public works projects designed to strengthen her infrastructure and education system. This increased Ireland’s production capacity and the quality of its workforce while creating jobs – which in turn increased income per capita and with it, consumer spending. By investing in the long-term Ireland was perfectly poised to take full advantage of favorable economic conditions when they occurred years later.

Energy Independence

Some of the public works projects that Ireland committed to prior to the expansion included investing in her capacity to generate energy. Ireland invested in hydroelectric plants. The island’s numerous peat bogs were utilized to create a fuel for heating from dried peat products, and local off-shore gas fields were tapped. Prior to and during Celtic Tiger Ireland could operate without the financial burden of dependence on foreign oil. It is worth noting that as Ireland’s demand for energy began to surpass the capacity of her local energy sources her economic growth slowed in concert with her increasing dependence on foreign oil. Apparently these lessons on energy production were not wasted on the Irish. Today, Ireland is creating new capacity by developing wind based power generation facilities.

Political and Social Reforms

Prior to this renaissance Ireland had suffered from rampant corruption in high political offices. Society was divided politically and in the conflict between Catholics and Protestants there seemed to be no end in sight. Civil liberties were restrictive compared to other modern countries. These factors coupled with high unemployment and low wages caused Ireland to suffer from a kind of social and economic pessimism.

By the 80’s Ireland had cleared up much of its political corruption and began to develop a more cooperative political climate. Government, employers and trade unions forged landmark compromises to work together to bring in trade and investment. Universal education made it possible to maintain a highly educated workforce. More women pursued advanced education and entered the workforce. Birth rates per capita dropped as more women pursued careers. This reduced the ratio of dependents to wage earners and helped to lift the gross domestic product per capita.

During the most robust phase of the expansion Ireland benefited from the leadership of President Mary Robinson who garnered a 93% approval rating during her term. President Robinson was a true diplomat bringing together parties within Ireland and forming cooperative relationships with other nations. Robinson was also instrumental in expanding civil liberties. Shortly after Robinson left office to become the United Nations High Commissioner on Human Rights, the Belfast Agreement was signed bringing together political and religious foes to work to end the violence in Northern Ireland. All of these changes lifted the spirits of the Irish people and helped them feel better about their future.

The Power of Optimism

One could characterize the Celtic Tiger expansion as a journey from pessimism to optimism. An optimistic social climate is a powerful economic stimulus. When consumers feel good about the future they spend more money. When business leaders feel optimistic they are much more likely to invest in research and innovation and expand their operations and increase their workforce. What made the Celtic Tiger different is that the economic policies were supported by a cooperative political and social climate, a willingness to invest for the long-term and social policies and leaders who fostered optimism.