Economic history of Ireland
Encyclopedia
Ireland's economic history starts at the end of the Ice Age
when the first human
s arrived there. Agriculture
then came around 4500 BC. Iron
technology came with the Celts around 350 BC. From the 12th century to the 1970s, most Irish exports went to England
. During this period, Ireland
's main exports were foodstuffs. In the 20th century, Ireland's economy diversified and grew. It is now one of the richest countries in the world by GDP per capita.
, hunting
and gathering . This was the extent of the Irish economy for around 3500 years — until 4500BC when farming and pottery making became widespread. Sheep, goat
s, cattle
and cereal
s were imported from Britain
and Europe. Wheat
and barley
were the principal crops cultivated. There was an economic collapse around 2500BC, possibly because too much time was being spent building grandiose tombs, and the population declined from its peak of around 100,000. Metalworking
began in Ireland around 2500 BC, with bronze being the principal metal used. Swords, axes, daggers, hatchets, halberds, awls, drinking utensils and horn-shaped trumpets were produced in the period 2500BC – 700BC (the Bronze Age
). Mining began also around this time. Mines in Cork
and Kerry
are believed to have produced as much as 370 tonnes of copper
during the Bronze Age. The Celts brought iron
technology to Ireland around 350 BC. They established kingdoms and a system of rule, this enabled the economy to be regulated for the first time.
In the 12th century, Ireland was invaded by the Normans
. During these times, the economy was predominantly one based on subsistence farming, mainly oats
and potatoes (after the 16th century) and other forms of tillage
. An important industry developed on the south coast involving catching, processing and exporting pilchards (see Munster pilchard fishery 1570-1750
). One major change was the large amount of infrastructural development of Ireland by Britain — roads, railways and canal lines were established.
In the 18th century English trade with Ireland was the most important branch of English overseas trade1. The Anglo-Irish absentee landlords drew off some £800,000 p.a. in the early part of the century, rising to £1 million, in an economy that amounted to about £4 million. Completely deforested for timber exports and a temporary iron industry in the course of the 17th century, Irish estates turned to the export of salt beef and pork and butter and hard cheese through the slaughterhouse and port city of Cork
, which supplied England, the Royal Navy
and the sugar colonies of the West Indies. The bishop of Cloyne
wondered "how a foreigner could possibly conceive that half the inhabitants are dying of hunger in a country so abundant in foodstuffs?"2. In the 1780s, under pressure from salted meat exported from the Baltic
and from the United States
, the Anglo-Irish landowners rapidly switched to growing grain for export, while the Irish themselves ate potatoes and groats
.
brewery and the Jacob's
biscuit factory in Dublin. For much of the period, the Irish economy provided cheap raw materials such as timber, beef, vegetables and marble to the far more industrialized British economy. Ireland underwent major highs and lows economically during the 19th century: from economic booms during the Napoleonic Wars
and in the late 19th century (when it experienced a surge in economic growth unmatched until the 'Celtic Tiger
' boom of the 1990s), to severe economic downturns and a series of famines, the latest threatening in 1879. The worst of these was the Great Famine of 1846-1848, in which about 750,000 people died and another million had no option but to emigrate, with millions more leaving in the following decades.
Ireland's economic problems were in part the result of the small size of Irish landholdings. In particular, both the law and social tradition provided for subdivision of land, with all sons inheriting equal shares in a farm, meaning that farms became so small that only one crop, potatoes, could be grown in sufficient amounts to feed a family. Furthermore many estates, from whom the small farmers rented, were poorly run by absentee landlord
s and in many cases heavily mortgaged.
When potato blight hit the island in 1845, much of the rural population was unable to access the remaining food - wheat, livestock etc. which was due to export to Britain. Unfortunately at this time British politicians such as the Prime Minister Robert Peel
were wedded to a strict laissez-faire
economic policy, which argued against state intervention of any sort. While some money was raised by private individuals and charities (Native Americans
sent supplies, while Queen Victoria
personally donated £1,000) British government inaction (or at least inadequate action) led to a problem becoming a catastrophe; the class of cottiers or farm laborers was virtually wiped out.
The famine spawned the second mass wave of Irish emigration to the United States
, the first having been the migrations of the 18th century. There was also a large amount of emigration to England, Scotland
, Canada
, and Australia
. This had the long term consequence of creating a large and influential Irish diaspora
, particularly in the United States, who supported and financed different Irish independence movements
, beginning with the Irish Republican Brotherhood
. From 1879 a "Land War
" developed, and by 1903 many farmers were able to buy their land, but usually chose small and uneconomic lots.
In east Ulster the industrial revolution
led to rapid urbanization. Belfast grew from a population of 7,000 in 1800 to 400,000 in 1900, having outgrown Dublin, the former capital.
. Twenty-six counties of Ireland
became the Irish Free State
, later described as the Republic of Ireland
, while the other six remained in the Union as Northern Ireland
. There had already been a significant economic divide between these two parts of Ireland, but following partition both regions further diverged, with Belfast
, as the North's economic centre, and Dublin becoming the capital of the Free State. Partition had a devastating effect on what became Ireland's border area. County Donegal
for example was economically separated from its natural regional economic centre of Derry
. The rail network
struggled to operate across two economic areas, finally closing across a vast swath of Ireland's border area (the only cross-border route left being that between Belfast and Dublin). Both rail systems could not have operated after 1922 without government support.
Both parts of Ireland in effect used pound sterling
(to which the Irish pound
was pegged) until 1979 (when the peg was removed). As a result both parts also shared in any inflation or deflation in the value of sterling, with interests rates being determined in London. The continuing link to sterling from 1922 to 1979 underlines how much the economy of the south depended upon exports to (and remittances from) Britain, even though it was politically independent.
In general the economy of the Republic was much weaker than that of the North throughout the 20th century, being based on agriculture; and much of that also being based on uneconomically small farms. Protectionism was introduced by Seán Lemass
in 1932 and the economy became isolated. From 1945-60 Ireland missed out on the European economic boom across Europe, and 500,000 people emigrated. A major policy change followed the issue of TK Whitaker's economic model in 1958, and the Republic slowly embraced the industrial world. Most Irish exports continued to go to Britain until 1969. Lemass reversed his policies in 1959 and the economy started to grow as a new member of the EFTA
.
Meanwhile the main northern industries based on shipbuilding, ropes, shirts and textiles declined from 1960, and then more so due to the 1970s 'Troubles
' in Northern Ireland, despite government investment in projects such as the Belfast DeLorean plant. In 2005 the northern economy was supported by a net annual "subvention" from London of £5 billion, an amount that has risen over time.
Conversely, after a bleak period in the 1970s and 1980s, the Celtic Tiger
era in the Republic was spurred on by the high technology industries that took root in the country after 1990. The southern economy also benefited relatively more after 1973 up to 2002 from the European Structural Funds system. It grew markedly until 2007, but no corrective measures were taken to control the process, leading to the 2008 crisis.
Ice age
An ice age or, more precisely, glacial age, is a generic geological period of long-term reduction in the temperature of the Earth's surface and atmosphere, resulting in the presence or expansion of continental ice sheets, polar ice sheets and alpine glaciers...
when the first human
Human
Humans are the only living species in the Homo genus...
s arrived there. Agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
then came around 4500 BC. Iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
technology came with the Celts around 350 BC. From the 12th century to the 1970s, most Irish exports went to England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
. During this period, Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
's main exports were foodstuffs. In the 20th century, Ireland's economy diversified and grew. It is now one of the richest countries in the world by GDP per capita.
To 1800
The first settlers in Ireland were seafarers who survived largely by fishingFishing
Fishing is the activity of trying to catch wild fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....
, hunting
Hunting
Hunting is the practice of pursuing any living thing, usually wildlife, for food, recreation, or trade. In present-day use, the term refers to lawful hunting, as distinguished from poaching, which is the killing, trapping or capture of the hunted species contrary to applicable law...
and gathering . This was the extent of the Irish economy for around 3500 years — until 4500BC when farming and pottery making became widespread. Sheep, goat
Goat
The domestic goat is a subspecies of goat domesticated from the wild goat of southwest Asia and Eastern Europe. The goat is a member of the Bovidae family and is closely related to the sheep as both are in the goat-antelope subfamily Caprinae. There are over three hundred distinct breeds of...
s, cattle
Cattle
Cattle are the most common type of large domesticated ungulates. They are a prominent modern member of the subfamily Bovinae, are the most widespread species of the genus Bos, and are most commonly classified collectively as Bos primigenius...
and cereal
Cereal
Cereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...
s were imported from Britain
Prehistoric Britain
For the purposes of this article, Prehistoric Britain is that period of time between the first arrival of humans on the land mass now known as Great Britain and the start of recorded British history...
and Europe. Wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
and barley
Barley
Barley is a major cereal grain, a member of the grass family. It serves as a major animal fodder, as a base malt for beer and certain distilled beverages, and as a component of various health foods...
were the principal crops cultivated. There was an economic collapse around 2500BC, possibly because too much time was being spent building grandiose tombs, and the population declined from its peak of around 100,000. Metalworking
Metalworking
Metalworking is the process of working with metals to create individual parts, assemblies, or large scale structures. The term covers a wide range of work from large ships and bridges to precise engine parts and delicate jewelry. It therefore includes a correspondingly wide range of skills,...
began in Ireland around 2500 BC, with bronze being the principal metal used. Swords, axes, daggers, hatchets, halberds, awls, drinking utensils and horn-shaped trumpets were produced in the period 2500BC – 700BC (the Bronze Age
Bronze Age
The Bronze Age is a period characterized by the use of copper and its alloy bronze as the chief hard materials in the manufacture of some implements and weapons. Chronologically, it stands between the Stone Age and Iron Age...
). Mining began also around this time. Mines in Cork
County Cork
County Cork is a county in Ireland. It is located in the South-West Region and is also part of the province of Munster. It is named after the city of Cork . Cork County Council is the local authority for the county...
and Kerry
County Kerry
Kerry means the "people of Ciar" which was the name of the pre-Gaelic tribe who lived in part of the present county. The legendary founder of the tribe was Ciar, son of Fergus mac Róich. In Old Irish "Ciar" meant black or dark brown, and the word continues in use in modern Irish as an adjective...
are believed to have produced as much as 370 tonnes of copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
during the Bronze Age. The Celts brought iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
technology to Ireland around 350 BC. They established kingdoms and a system of rule, this enabled the economy to be regulated for the first time.
In the 12th century, Ireland was invaded by the Normans
Normans
The Normans were the people who gave their name to Normandy, a region in northern France. They were descended from Norse Viking conquerors of the territory and the native population of Frankish and Gallo-Roman stock...
. During these times, the economy was predominantly one based on subsistence farming, mainly oats
OATS
OATS - Open Source Assistive Technology Software - is a source code repository or "forge" for assistive technology software. It was launched in 2006 with the goal to provide a one-stop “shop” for end users, clinicians and open-source developers to promote and develop open source assistive...
and potatoes (after the 16th century) and other forms of tillage
Tillage
Tillage is the agricultural preparation of the soil by mechanical agitation of various types, such as digging, stirring, and overturning. Examples of human-powered tilling methods using hand tools include shovelling, picking, mattock work, hoeing, and raking...
. An important industry developed on the south coast involving catching, processing and exporting pilchards (see Munster pilchard fishery 1570-1750
Munster pilchard fishery 1570-1750
There is historical evidence to document the Pilchard industry in the South West Coast of Ireland from Ardmore, County Waterford, to Ballinskelligs in County Kerry, from approximately 1570 to about 1750...
). One major change was the large amount of infrastructural development of Ireland by Britain — roads, railways and canal lines were established.
In the 18th century English trade with Ireland was the most important branch of English overseas trade1. The Anglo-Irish absentee landlords drew off some £800,000 p.a. in the early part of the century, rising to £1 million, in an economy that amounted to about £4 million. Completely deforested for timber exports and a temporary iron industry in the course of the 17th century, Irish estates turned to the export of salt beef and pork and butter and hard cheese through the slaughterhouse and port city of Cork
Cork (city)
Cork is the second largest city in the Republic of Ireland and the island of Ireland's third most populous city. It is the principal city and administrative centre of County Cork and the largest city in the province of Munster. Cork has a population of 119,418, while the addition of the suburban...
, which supplied England, the Royal Navy
Royal Navy
The Royal Navy is the naval warfare service branch of the British Armed Forces. Founded in the 16th century, it is the oldest service branch and is known as the Senior Service...
and the sugar colonies of the West Indies. The bishop of Cloyne
Bishop of Cloyne
The Bishop of Cloyne is an episcopal title which takes its name after the small town of Cloyne in County Cork, Ireland. In the Roman Catholic Church it is a separate title, but in the Church of Ireland it has been united with other bishoprics....
wondered "how a foreigner could possibly conceive that half the inhabitants are dying of hunger in a country so abundant in foodstuffs?"2. In the 1780s, under pressure from salted meat exported from the Baltic
Baltic region
The terms Baltic region, Baltic Rim countries, and Baltic Rim refer to slightly different combinations of countries in the general area surrounding the Baltic Sea.- Etymology :...
and from the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the Anglo-Irish landowners rapidly switched to growing grain for export, while the Irish themselves ate potatoes and groats
Groats
Groats are the hulled grains of various cereals, such as oats, wheat, barley or buckwheat . Groats are whole grains that include the cereal germ and fiber-rich bran portion of the grain as well as the endosperm...
.
19th century
For much of the 19th century, the only factories in Ireland were the textile mills of the north, and the GuinnessGuinness
Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. James's Gate, Dublin. Guinness is directly descended from the porter style that originated in London in the early 18th century and is one of the most successful beer brands worldwide, brewed in almost...
brewery and the Jacob's
Jacob's
Jacob's is a brand name for several lines of biscuits and crackers. The brand name in the Republic of Ireland is owned by Jacob Fruitfield Food Group and in the United Kingdom it is owned under license by United Biscuits.-History:...
biscuit factory in Dublin. For much of the period, the Irish economy provided cheap raw materials such as timber, beef, vegetables and marble to the far more industrialized British economy. Ireland underwent major highs and lows economically during the 19th century: from economic booms during the Napoleonic Wars
Napoleonic Wars
The Napoleonic Wars were a series of wars declared against Napoleon's French Empire by opposing coalitions that ran from 1803 to 1815. As a continuation of the wars sparked by the French Revolution of 1789, they revolutionised European armies and played out on an unprecedented scale, mainly due to...
and in the late 19th century (when it experienced a surge in economic growth unmatched until the 'Celtic Tiger
Celtic Tiger
Celtic Tiger is a term used to describe the economy of Ireland during a period of rapid economic growth between 1995 and 2007. The expansion underwent a dramatic reversal from 2008, with GDP contracting by 14% and unemployment levels rising to 14% by 2010...
' boom of the 1990s), to severe economic downturns and a series of famines, the latest threatening in 1879. The worst of these was the Great Famine of 1846-1848, in which about 750,000 people died and another million had no option but to emigrate, with millions more leaving in the following decades.
Ireland's economic problems were in part the result of the small size of Irish landholdings. In particular, both the law and social tradition provided for subdivision of land, with all sons inheriting equal shares in a farm, meaning that farms became so small that only one crop, potatoes, could be grown in sufficient amounts to feed a family. Furthermore many estates, from whom the small farmers rented, were poorly run by absentee landlord
Absentee landlord
Absentee landlord is an economic term for a person who owns and rents out a profit-earning property, but does not live within the property's local economic region. This practice is problematic for that region because absentee landlords drain local wealth into their home country, particularly that...
s and in many cases heavily mortgaged.
When potato blight hit the island in 1845, much of the rural population was unable to access the remaining food - wheat, livestock etc. which was due to export to Britain. Unfortunately at this time British politicians such as the Prime Minister Robert Peel
Robert Peel
Sir Robert Peel, 2nd Baronet was a British Conservative statesman who served as Prime Minister of the United Kingdom from 10 December 1834 to 8 April 1835, and again from 30 August 1841 to 29 June 1846...
were wedded to a strict laissez-faire
Laissez-faire
In economics, laissez-faire describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies....
economic policy, which argued against state intervention of any sort. While some money was raised by private individuals and charities (Native Americans
Native Americans in the United States
Native Americans in the United States are the indigenous peoples in North America within the boundaries of the present-day continental United States, parts of Alaska, and the island state of Hawaii. They are composed of numerous, distinct tribes, states, and ethnic groups, many of which survive as...
sent supplies, while Queen Victoria
Victoria of the United Kingdom
Victoria was the monarch of the United Kingdom of Great Britain and Ireland from 20 June 1837 until her death. From 1 May 1876, she used the additional title of Empress of India....
personally donated £1,000) British government inaction (or at least inadequate action) led to a problem becoming a catastrophe; the class of cottiers or farm laborers was virtually wiped out.
The famine spawned the second mass wave of Irish emigration to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the first having been the migrations of the 18th century. There was also a large amount of emigration to England, Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. This had the long term consequence of creating a large and influential Irish diaspora
Irish diaspora
thumb|Night Train with Reaper by London Irish artist [[Brian Whelan]] from the book Myth of Return, 2007The Irish diaspora consists of Irish emigrants and their descendants in countries such as the United Kingdom, the United States, Canada, Australia, Argentina, New Zealand, Mexico, South Africa,...
, particularly in the United States, who supported and financed different Irish independence movements
Irish Republicanism
Irish republicanism is an ideology based on the belief that all of Ireland should be an independent republic.In 1801, under the Act of Union, the Kingdom of Great Britain and the Kingdom of Ireland merged to form the United Kingdom of Great Britain and Ireland...
, beginning with the Irish Republican Brotherhood
Irish Republican Brotherhood
The Irish Republican Brotherhood was a secret oath-bound fraternal organisation dedicated to the establishment of an "independent democratic republic" in Ireland during the second half of the 19th century and the start of the 20th century...
. From 1879 a "Land War
Land War
The Land War in Irish history was a period of agrarian agitation in rural Ireland in the 1870s, 1880s and 1890s. The agitation was led by the Irish National Land League and was dedicated to bettering the position of tenant farmers and ultimately to a redistribution of land to tenants from...
" developed, and by 1903 many farmers were able to buy their land, but usually chose small and uneconomic lots.
In east Ulster the industrial revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...
led to rapid urbanization. Belfast grew from a population of 7,000 in 1800 to 400,000 in 1900, having outgrown Dublin, the former capital.
History since partition
After the War of Independence, most of Ireland gained independence from the United KingdomUnited Kingdom of Great Britain and Ireland
The United Kingdom of Great Britain and Ireland was the formal name of the United Kingdom during the period when what is now the Republic of Ireland formed a part of it....
. Twenty-six counties of Ireland
Counties of Ireland
The counties of Ireland are sub-national divisions used for the purposes of geographic demarcation and local government. Closely related to the county is the County corporate which covered towns or cities which were deemed to be important enough to be independent from their counties. A county...
became the Irish Free State
Irish Free State
The Irish Free State was the state established as a Dominion on 6 December 1922 under the Anglo-Irish Treaty, signed by the British government and Irish representatives exactly twelve months beforehand...
, later described as the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
, while the other six remained in the Union as Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
. There had already been a significant economic divide between these two parts of Ireland, but following partition both regions further diverged, with Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
, as the North's economic centre, and Dublin becoming the capital of the Free State. Partition had a devastating effect on what became Ireland's border area. County Donegal
County Donegal
County Donegal is a county in Ireland. It is part of the Border Region and is also located in the province of Ulster. It is named after the town of Donegal. Donegal County Council is the local authority for the county...
for example was economically separated from its natural regional economic centre of Derry
Derry
Derry or Londonderry is the second-biggest city in Northern Ireland and the fourth-biggest city on the island of Ireland. The name Derry is an anglicisation of the Irish name Doire or Doire Cholmcille meaning "oak-wood of Colmcille"...
. The rail network
Rail transport in Ireland
Rail services in Ireland are provided by Iarnród Éireann in the Republic of Ireland and by Northern Ireland Railways in Northern Ireland.Most routes in the Republic radiate from Dublin...
struggled to operate across two economic areas, finally closing across a vast swath of Ireland's border area (the only cross-border route left being that between Belfast and Dublin). Both rail systems could not have operated after 1922 without government support.
Both parts of Ireland in effect used pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
(to which the Irish pound
Irish pound
The Irish pound was the currency of Ireland until 2002. Its ISO 4217 code was IEP, and the usual notation was the prefix £...
was pegged) until 1979 (when the peg was removed). As a result both parts also shared in any inflation or deflation in the value of sterling, with interests rates being determined in London. The continuing link to sterling from 1922 to 1979 underlines how much the economy of the south depended upon exports to (and remittances from) Britain, even though it was politically independent.
In general the economy of the Republic was much weaker than that of the North throughout the 20th century, being based on agriculture; and much of that also being based on uneconomically small farms. Protectionism was introduced by Seán Lemass
Seán Lemass
Seán Francis Lemass was one of the most prominent Irish politicians of the 20th century. He served as Taoiseach from 1959 until 1966....
in 1932 and the economy became isolated. From 1945-60 Ireland missed out on the European economic boom across Europe, and 500,000 people emigrated. A major policy change followed the issue of TK Whitaker's economic model in 1958, and the Republic slowly embraced the industrial world. Most Irish exports continued to go to Britain until 1969. Lemass reversed his policies in 1959 and the economy started to grow as a new member of the EFTA
European Free Trade Association
The European Free Trade Association or EFTA is a free trade organisation between four European countries that operates parallel to, and is linked to, the European Union . EFTA was established on 3 May 1960 as a trade bloc-alternative for European states who were either unable to, or chose not to,...
.
Meanwhile the main northern industries based on shipbuilding, ropes, shirts and textiles declined from 1960, and then more so due to the 1970s 'Troubles
The Troubles
The Troubles was a period of ethno-political conflict in Northern Ireland which spilled over at various times into England, the Republic of Ireland, and mainland Europe. The duration of the Troubles is conventionally dated from the late 1960s and considered by many to have ended with the Belfast...
' in Northern Ireland, despite government investment in projects such as the Belfast DeLorean plant. In 2005 the northern economy was supported by a net annual "subvention" from London of £5 billion, an amount that has risen over time.
Conversely, after a bleak period in the 1970s and 1980s, the Celtic Tiger
Celtic Tiger
Celtic Tiger is a term used to describe the economy of Ireland during a period of rapid economic growth between 1995 and 2007. The expansion underwent a dramatic reversal from 2008, with GDP contracting by 14% and unemployment levels rising to 14% by 2010...
era in the Republic was spurred on by the high technology industries that took root in the country after 1990. The southern economy also benefited relatively more after 1973 up to 2002 from the European Structural Funds system. It grew markedly until 2007, but no corrective measures were taken to control the process, leading to the 2008 crisis.
Sources
- Braudel, FernandFernand BraudelFernand Braudel was a French historian and a leader of the Annales School. His scholarship focused on three main projects, each representing several decades of intense study: The Mediterranean , Civilization and Capitalism , and the unfinished Identity of France...
, The Perspective of the World, vol III of Civilization and Capitalism (1979, in English 1985) - Plumb, J.H., England in the 18th Century, 1973: "The Irish Empire"
See also
- Economy of the Republic of IrelandEconomy of the Republic of IrelandThe economy of Ireland has transformed in recent years from an agricultural focus to a modern knowledge economy, focusing on services and high-tech industries and dependent on trade, industry and investment. In terms of GDP per capita, Ireland is ranked as one of the wealthiest countries in the...