IRISH ECONOMICS ASSIGNMENT

Topic 3: How Ireland transformed itself from “the poorest of the rich” in the 8O’s to “Europe shinning light” in the 90’s? Nowadays, even Ireland haves the highest GDP per capita oh Europe, this country is also affected by the international economic recession. In effect, Ireland is with the same economic statistics than twenty year ago: the GDP declines by 7.1%, the unemployment is 13.4% and the government Debt/GDP Ratio increases. However, it isn’t the first time that Ireland knows this situation and Ireland have proved that the country can go out of recession’s time. In effect, after a really bad period caused by the national political divergences and the government economic policy, Ireland has been the “Europe shinning light”. But how can explain the fact of this country transformed itself from “the poorest of rich” in the 80’s to “Europe shinning light” in the 90’s? In the 90’s, Ireland known an Economic Boom with all economic statistics in impressive increase: the GDP increased of 470%, the merchandise export increased of 477% and the total Debt/GDP was the lowest of the world. This time of economics’ health can be divided in three parts: the Take-off (1987 to 1993), the Celtic Tiger (1994 to 2000) and the Domestic boom (2001 to 2007). The first period, named the Take-off was the beginning of the good time. The government changed the economic policy to prepare the future. In effect, lot of house and building was created and the government reduces the Debt/GDP to cut the fending. The second period, named the Celtic Tiger, in reference of the Asian’s tigers during the 8O’s, started in 1994. This period is also AKA “the Boom” or “the Economic Miracle”. But, what caused the Celtic Tiger? The first reason is the change of the government policy in the end of the 8O’s. In effect, the government changes the economic policy and adopts a free trade policy. With this policy the country opened to international market and in