Information AboutCeltic Tiger |
| CATEGORIES ABOUT CELTIC TIGER | |
| history of the republic of ireland | |
| economy of the republic of ireland | |
| economic history | |
| economic booms | |
| 1990s in ireland | |
| 2000s in ireland | |
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"The Celtic Tiger" is a Nickname for the Republic Of Ireland during its period of rapid Economic Growth between the 1990s and 2001 or 2002. Strictly speaking, the term is used for both the period of time (as in ''Celtic Tiger years'') and the country during that period. The provenance of the term ''Celtic Tiger'' is hotly contested but most likely the first recorded usage was by well known Irish economist David McWilliams in the early to mid 1990's. The term is an analogy to the nickname " East Asian Tigers " applied to South Korea , Singapore , Hong Kong , Taiwan and other countries of East Asia during their period of rapid growth in the 1980s and 1990s. The ''Celtic Tiger'' or ''Celtic Tiger economy'' is often also called the ''The Boom'' or ''Ireland's Economic Miracle''. Sometimes the ''Celtic Tiger'' moniker is also used when referring to continued or renewed Irish economic prowess subsequent to the aforesaid time period. THE CELTIC TIGER The original Celtic Tiger occurred in the late 1990s and lasted until the worldwide economic downturn of 2001. During this time, the Irish economy grew by 5 to 6 percent annually, dramatically raising Irish living standards to equal and eventually surpass those of many states in the rest of Western Europe . Causes (Key Sources: Dr. Dermot McAleese report on Causes , Markets Created a Pot of Gold in Ireland ''by Benjamin Powell'' , The Economist Magazine Report 14th Oct 2004 ) The following are ''some'' of the main causes of the ''Celtic Tiger'' Many economists give credit for Ireland's growth to a low corporate of Ireland had lagged behind the rest of northwestern Europe for so long that it had become one of the few remaining sources of a relatively large, low-wage labour pool left in Western Europe . Ireland's membership of the European Union since 1973 has helped the country gain access to the huge markets of Europe, in addition to EU subsidies. Ireland's trade had previously been predominantly through the United Kingdom . The provision of and Spain . A favourable overnight while his American counterpart slept. Little government intervention in business compared to other EU members and particularly countries in Eastern Europe assured U.S. firms of a stable operating environment. Growing stability in Northern Ireland brought about by the Belfast Agreement further established Ireland's image as having a stable operating environment. The building of the International Financial Services Centre in Dublin led to the creation of 14,000 high-value jobs in the accounting, legal and financial management sectors. . Consequences During the Celtic Tiger period, Ireland was transformed from one of the poorest countries in Western Europe to one of the wealthiest. After successive governments led by weak and often corrupt politicians such as the now disgraced Charles Haughey , the country was rapidly transformed to become one of Europe's richest nations. The major consequences of the ''Celtic Tiger'' included: Economic consequences
Social and cultural consequences
Criticism of government management of the boom Despite the economic success of Ireland during the ''Celtic Tiger'' period, the government came under heavy criticism for poor management and neglect of certain government responsibilities. These included:
THE DOWNTURN 2001-2003 The Celtic Tiger came to a sudden halt in 2001 after a half decade of astonishingly high growth. The Irish economic downturn was in-line with the worldwide downturn - largely due to Ireland's close US economic ties. The major factors behind the sudden slowdown in the Irish economy included:
However the downturn was not a full blown Recession , ''merely'' a slowdown in the rate of Irish economic expansion. Signs of a recovery became evident in late 2003 as US investment levels increased once again. Worldwide situation At the same time, the rest of the world also experienced a slow-down. The USA grew only 0.3% in April, May and June 2002 when compared to the same months in 2001. The US Federal Reserve made 11 rate cuts over that year in an attempt to stimulate the economy. Whilst in Europe the EU scarcely grew throughout the whole of 2002 and many governments (notably Germany and France ) lost control of Public Finance s causing large deficits which broke the terms of the EMU Stability And Growth Pact . CELTIC TIGER 2 industries recovery has helped the Irish economy to boom once again]] After the slowdown in 2001 and 2002, Irish economic growth began to accelerate once again in late 2003 and 2004. The Irish media quickly jumped upon this as an opportunity to document the return of the ''Celtic Tiger'' - commonly referred to in the press as the ''Celtic Tiger 2'' and ''Celtic Tiger Mark 2''. In 2004 Irish growth was the highest of the 15 ''old European'' states (the EU pre-May 2004) at 4.5% and a similar figure is forecast for 2005 - these rates contrast with much lower figures (1-3%) for many other European economies, such as Germany , France , and Italy . Causes The reasons for the resurrection of the Irish economic boom are somewhat controversial within Ireland. There is currently open debate in the country - the skeptics say that recent growth is merely due to a huge increase in house values and catch-up growth in employment in the construction sector, whilst others claim that there are several other factors at play in the new boom. These factors include:
CHALLENGES AND THREATS AHEAD symbolises the modernisation and growing prosperity of Ireland.]] The return of the boom in 2004 has thus far been largely caused by a single industry - the huge construction sector which is only now catching up with the demand caused by the first boom. Many highly regarded international figures and publications such as '' The Economist '' have warned of a crash in Irish property prices. Already, rent yields are falling nationwide on residential property and output has now outpaced supply - 2004 saw the construction of 80,000 new homes - compared to the UK's 160,000 - a nation that has 15 times Ireland's population. Loss of competitiveness Rising wages, inflation, poor infrastructure, excessive public spending and the accession of eight new Eastern European members to the EU in 2004 are just some of the other threats to the continued competitiveness of the Irish Economy and sustained growth. Irish wages are now substantially above the EU average - particularly in the Dublin region. These pressures will damage low to mid skill jobs, largely in manufacturing. Outsourcing of many professional jobs is beginning to take place also. Poland recently gained several hundred former Irish jobs from the accountancy division of Philips . The government has set up ''Science Foundation Ireland'' {Link without Title} to help promote high-skill education and invest in science initiatives to create a ''Knowledge Economy'' in Ireland which would lessen the worries that jobs could simply be outsourced to a cheaper location. Promotion of indigenous industry One of the major challenges facing Ireland is the successful promotion of indigenous industry. Although Ireland boasts a few large international companies such as AIB , CRH , Kerry Group , Elán and Ryanair , these are exceptions to rather than the rule. There are very few companies with over a billion Euros in annual revenue. The government has charged ''Enterprise Ireland'' with the task of boosting Ireland's indigenous industry. In 2003 the government launched a one-stop-shop website for setting up and running a business in Ireland - it is hoped [http://www.basis.ie/ basis.ie will make starting a business in Ireland easier and quicker. Over-reliance on foreign energy sources Another possible threat is Ireland's over-reliance on foreign oil. Ireland for many years curbed dependence on foreign energy sources by developing its Peat bogs, building a dam on the River Shannon and developing off shore gas fields. However today the potential for hydroelectricity has been tapped as far as it can be, gas is now in use to the extent it can be and the peat bogs are no longer economical - this has led to an ever-increasing need for oil. One solution is to develop Ireland's huge potential for Wind Power and to a lesser extent Wave Power . The world's largest off-shore windfarm is currently in construction off the east coast of the island near Arklow and many remote locations in the west of the country show potential for windfarm development. A report by ''Sustainable Energy Ireland'' revealed that if properly developed, Ireland could one day be exporting excess wind power - however at the moment wind power only supplies 5% of Irish electricity. Spreading the wealth was created to develop Ireland's infrastructure to help invest the rewards from the economic success of the Celtic Tiger]] Like any country that undergoes rapid growth, Ireland's new wealth is not evenly distributed - it is concentrated principally on the east coast surrounding Dublin . The challenge is to spread the new wealth nationwide to remote areas such as Connemara and Donegal {Link without Title} . To do this the government has taken three main measures:
Relative poverty As in many major cities, despite the boom many communities, particularly in Dublin, are still crime-ridden and in relative poverty. Examples include in 2004. The song "Celtic Tiger" by Damien Dempsey also relates to the increase in housing costs and its effect on the younger generation. REFERENCES
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