Economic Development Through Europeanization: The Case of Ireland

Abstract

Many actors are involved in the economic development of any country, but for Ireland the network is especially complicated. There is the Irish government. There’s the European Commission, European Central Bank, and International Monetary Fund—sometimes combining their powers as the Troika. There are powerful foreign technology corporations operating sizable portions of their business through Ireland for tax benefit, and the Irish people working for these corporations. And there are many others indirectly involved—writers, investors, and economists. This thesis uses each perspective to develop the mechanisms of Ireland’s economic development over the last sixty years. The two most important policies promoting Irish growth have been membership in the European Community, and a low corporate tax rate. Historically, these policies have positively reinforced one another, sustaining Ireland through the ‘Celtic Tiger,’ period. Considering recent events, most important the fiscal crisis, and government bailout of 2010, Ireland’s economic foundations have been called into question. Depending on the outcome of upcoming political events in Europe and the United States, Ireland will have to choose whether to maintain the status quo, or implement a new economic strategy.