The information technology recovery has helped the Irish economy to boom once again. After the slowdown in 2001 and 2002, Irish economic growth began to accelerate again in late 2003 and 2004. Some of the media considered that an opportunity to document the return of the Celtic Tiger, In 2004, Irish growth was the highest, at 4.5%, of the EU-15 states, and a similar figure was forecast for 2005. Those rates contrast with growth rates of 1% to 3% for many other European economies, including Germany, France, and Italy.
The reasons for the continuation of the Irish economic boom were somewhat controversial within Ireland. Sceptics said that the recent growth was merely due to a great increase in property values, and to catch-up growth in employment in the construction sector. A variety of other factors have also been put
The recovery of the global information technology industry was also a factor: Ireland produced 25% of all European PCs, and Dell, IBM, Apple and HP all had sizeable Irish operations, with Dell having its major European manufacturing plant in Limerick.
Domestically, a new state body, Science Foundation Ireland, was established to promote new science companies in Ireland. A drive had been underway to attract high-skill jobs to Ireland.
In September 2009, Tánaiste Mary Coughlan, said Ireland had lost ground in international competitiveness every year since 2000.
Loss of competitiveness
Rising wages, inflation and excessive public spending led to a loss of competitiveness in the Irish economy. Irish wages are now substantially above the EU average, particularly in the Dublin region. Outsourcing of professional jobs is also increasing, with Poland in 2008 gaining several hundred former Irish jobs from the accountancy division of Philips and Dell in January 2009 announced the transfer from Ireland, of 1700 manufacturing jobs, to Poland.
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, Smurfit Kappa Group, Élan and Ryanair, there are few companies with over one billion euros in annual revenue. The government has charged Enterprise Ireland with the task of boosting Ireland's indigenous industry.
Distribution of Wealth
Ireland's new wealth is not evenly distributed. The United Nations reported in 2004 that Ireland was second only to the United States in inequality among Western nations.
Moreover, Ireland's inequality persists by other measurements. according to an ESRI report published in December 2006 is the 22nd best out of the 26 richest countries in terms of the level of its child poverty; and the 2nd most unequal country in Europe.
The case is clear: an economically challenged government, perniciously influenced by the interests of the housing lobby, blew it. The entire Irish episode will be studied internationally in years to come as an example of how not to do things. Leer más...
