The globalisation of the world economy is one of the most important business and economic
phenomenon at the close of the 20 th century. The process has been driven by a wide range of
forces such as improvements in transport and communications and, most importantly, the
clear demonstration that openess to the international economy offers a route to economic
development while isolatio offers stagnation and decline. Ireland has also participated
enthusiastically in this process through the development of a modern trading industrial base.
The last years of the twentieth century have added an exceptional dimension to the transition
to a new millennium in Ireland. The economy of the Republic of Ireland has undergone a
singular transformation; it has surmounted crippling weaknesses to attract widespread recognition
for its impressive performance. No part of the island and no individual on it has been
wholly insulated from the effects of this turnaround.
Within the scope of our group presentation I´ve get very interested in this phenomenon of the
so called “Celtic Tiger”. In this termpaper I will try to explain what the “Celtic Tiger” is and
what makes him run. I will also try to describe its effects. Although the Celic Tiger has led to
an enormous growth, there is another side of the coin. Not every member of the Irish Republic
has profited by the changes in the country. There aren´t only winners. It´s my aim to show the
different sides of this economic boom of Ireland. I will analyse the advantages and highlights
but also the downside of the Celtic Tiger and at the end of the paper the main points will be
summarized in my conclusion.
Table of Contents
1. Introduction
2. Definition of the “Celtic Tiger“
3. What makes the Celtic Tiger run? – Causes of the boom
3.1 Tax rates and Foreign Direct Investments
3.2 Membership of the EU, structural funds and workforce
3.3 Social Partnership
4. The effects of the Celtic Tiger - the animal also unsheathe it´s hurting claws
4.1 Unemployment, poverty and living conditions
4.2 Property market and inflation
4.3 Ireland, US investors, competitors and the EU
4.4 Strikes, working conditions and civil commodation
5. Conclusion
Objectives and Topics
This term paper explores the economic phenomenon known as the "Celtic Tiger," analyzing both the drivers of Ireland's rapid economic growth and the significant socio-economic disparities that have emerged alongside this development.
- Causes of Ireland's economic boom, including tax policies and foreign direct investment.
- The role of European Union membership and structural funds in regional development.
- Social partnership agreements and their impact on wages, labor relations, and industrial peace.
- Socio-economic downsides, specifically rising inequality, property market inflation, and poverty.
- The dependence on foreign investment and external market influences on the Irish economy.
Excerpt from the Book
Unemployment, poverty and living conditions
Ireland's phenomenal economic growth, has only benefited a thin layer of the population. Monitoring Poverty Trends, a report published in June 1999, found that the number of people experiencing income poverty was generally higher in 1997 than in 1994. This major study, carried out by the Economic and Social Research Institute, revealed that some 35 percent of the Irish population fell below the poverty line in 1997, with 22 percent experiencing more extreme deprivation being forced to live on £78 a week or less. The figures were an increase on earlier studies.
The risring unemployment is also a fact, which couldn´t be ignored in the streets. The Celtic Tiger hasn´t even meant a job for all, more than one in ten is still out of work. More than one in five 15-24 year olds are jobless. There is still a core of long-term unemployment because of new labour market entrants, returned emigrants, and new immigrants snapping up job vacancies, often due to better experience and qualifications, and because of the poor education and skills of the long-term unemployed.
Summary of Chapters
Introduction: Provides an overview of global economic trends and introduces the "Celtic Tiger" as a unique transformation of the Irish economy.
Definition of the “Celtic Tiger“: Defines the term within the context of small, successful economies and its specific application to the Irish Republic.
What makes the Celtic Tiger run? – Causes of the boom: Analyzes the primary catalysts for growth, including tax incentives, foreign direct investment, EU integration, and social partnership agreements.
The effects of the Celtic Tiger - the animal also unsheathe it´s hurting claws: Examines the negative consequences of the boom, such as increased inequality, housing issues, and labor market tensions.
Conclusion: Synthesizes the economic achievements of Ireland with the ongoing challenges of creating a more equitable society.
Keywords
Celtic Tiger, Ireland, Economic growth, Foreign Direct Investment, Tax rates, European Union, Social Partnership, Unemployment, Poverty, Inflation, Inequality, Labor conditions, Globalization, US investment, Socio-economic development.
Frequently Asked Questions
What is the primary subject of this term paper?
The paper examines the "Celtic Tiger," a term describing the Republic of Ireland’s rapid economic expansion at the end of the 20th century.
What are the central themes discussed in the work?
The core themes include the drivers of rapid industrial growth, the impact of foreign direct investment, the influence of EU membership, and the social costs of this economic success.
What is the main research objective?
The objective is to explain the causes behind Ireland's economic boom while highlighting the resulting socio-economic disparities and inequality.
Which methodology was used?
The study relies on a qualitative analysis of existing literature, economic reports, and social studies to evaluate the Irish economic transformation.
What topics are covered in the main section?
The main section investigates tax structures, EU structural funds, social partnership contracts, labor market issues, inflation, and the influence of US-based corporations.
Which keywords characterize this paper?
The work is characterized by terms such as Celtic Tiger, Economic Growth, Foreign Direct Investment, Social Partnership, and Inequality.
How did EU membership specifically contribute to the Irish boom?
Membership provided access to a larger European market, significant development funding, and helped reduce Ireland's historic economic dependence on Britain.
What is the author's conclusion regarding the future of the "Celtic Tiger"?
The author concludes that while the economic transformation was successful, Ireland now faces the critical challenge of ensuring this wealth is distributed equitably to avoid social division.
- Quote paper
- Miriam Rinke (Author), 2002, The Celtic Tiger, Munich, GRIN Verlag, https://www.grin.com/document/15366
