Figure 1.--Ireland achieved full independence after World War II. The economy was primarily agricultural and craft industries. And this situation changed only marginally in the late-20th century until the mid-1990s when the Irish Goverment adopted policie meant to arract direct foreign investment. The results were stunning.

The emigration from Ireland finally declined (1990s). And when rising immigration, the population flow balance has shifted. Some of the new immigrants are individuals of Irish ancestry returning to the Old Sod. The reason is that Ireland has become the Celtic Tiger--a reference to the Asian Tigers--countries which adopted free markets economics and created roaring economies. All of a sudden high-tech companies began springing up in villages that were previously dieing. The town of Leixlip in County Kildare, is famous as the birthplace of Guinness beer. But prosperity in Leixlip now comes from Intel, which built a $5 billion plant there. But many smaller companies are active. Ireland has become a leading exporter of computer software. Ireland was never industrialized like England. As a result, the country with a basically pristine environment is moving from a largely agricultural economy directly into the information technology era. Many of us were appalled by rank McCourt's description of Limerick in Angela's Ashes. He came to America because jobs were so difficult to find. Now Limerick workers are making computers. The recipe for Ireland's success is fairly simple--the same recipe used by other modern success stories. A shift away from socialism toward a business friendly environment and low taxes. The European Union Transfer Payment to poor countries may have been a factor, but some economists believe they were inefficient and even counter productive. Most economists do believe that Government subsidies and investment capital did play an important role. Here the Industrial Development Authority (IDA) was particularly important. Major American corporations (Dell, Intel, and Microsoft) were attracted to Ireland. Many of these companies were fleeing California's Silicon Valley because of California's policies which punish business ans businessmen. European Union membership meant that production had access to the immense EU market. Enterprise Ireland, another a state agency in business friendly Ireland, provides financial, technical and social support to start-up businesses. Following the U.S. investments, the International Financial Services Centre in Dublin led to the creation of many high-paying jobs in the expanding financial sector. [Flanigan] And as strange as it may seem, these policies have resulted in greater tax revenue which the Government can use to address social problems. And of course the jobs created help solve many of those social problems by raising per capita income. A well educated population and an English speaking work force were also important factors. Americans will no doubt note that the policies that Ireland followed are just opposite of what the now the problem-plagued state of California followed.

Population Balance

In recent years the emigration has finally declined and when rising immigration, the population flow balance has shifted. Some of the new immigrants are individuals of Irish ancestry returning to the Old Sod.

Tiger Economies

The reason is that Ireland has become the Celtic Tiger--a reference to the Asian Tigers--countries which adopted free markets economics and created roaring economies. The first Asian countries to pursue these policies were Hong Kong, Sinapore, South Korea, and Taiwan. There success was so stunning that even the Chinese Communists took notice. Mao died (1976). Chinese Vice-Premier Deng Xiaoping noting the stunning successes of the Asian Tigers, discuused the matter with Prime Minister Lee Kuan Yew on an official visit to Singapore (1978). The result was market reforms. The Communists and Socialists had so successfully darkened the term 'capitalism' that they didn't dare use the term 'capitalism'--at least at first. India a little over a decade later also adopted their own 'market reforms'. Other countries follow suit. The results were nothing short of spectacular--although rarely recognized by the Mainline Media in the West which contines to focus on the imperfections of capitalism. In a little more than a geneneration (a speck in historical time, the shift from socialism to capitalism has thrust some ONE BILLION people from abject poverty to the prosperous middle class. Never before have so many people achieved a prosperous life-style in so short a period. In nfact that is more people than have enjoyed prosperity in ALL OF HISTORY. And this has been accomplished in one short generation. And note that the ocialist/progressive MAIN LINE MEDIA in the West never even mentions what is demobstably the greatest economic event in human history. Some 20 countries with more than a third of the world's population have attempted to create workers' paradices with socialist policies. All have failed and failed spectacularly and in the process committed horrendous crimes involving the murder of tens of millions of their people. The simple fact is that capitalist economies are the only economies that have created the wealth neccesary to create prosperity. The only exception are the oil rich countries sitting on pools of oil. And the ability of socialism to destroy wealth is so starkly illustrated by the destruction of the oil-rich Venezuelan economy.

Irish Policies

The Irish Government adopted businees friendly policies. Rather than being hostile to corporations, the Irish Government adopted business friendly policies undertanding that major corprations are amajor assett to any country. At the same time, these same corporations were being criticized in America for a range of aledged misbehavior including pollution, tax cheating, unfair hiring policies, global warming, and much more. Not so in Ireland. And as part of their business friendly approach, they sharply reduced corporate tax rates. This made Ireland a very attractive place to do business, especially given the American 35 percent Federal corporate tax rate. (This was just the Federal tax rate on profits, there were akso a wide range of state and local taxes and fees.)

Impact

The result was that American direct investment in Ireland eventually approached $400 billion. This is a huge amount in an economy that at the beginning of the process had a GDP of only about $70 billion. It also changed a slow growing economy to aan econmy that began to grow at a 8-10 percent rate annually. Eventually 25 of the top 50 Irish enterprises were American-based companies. These American companies would come to employ a quater of Ireland's private sector jobs. They paid wages two-and-ahalf the national average.

Industries

The American comapnies attracted to Ireland included airplane leasing, phsrmaceuticals, high-tech and others. Nearly all of the world's top pharmaceutical and biopharmeceutical corporations established Irish operations. All of a sudden high-tech companies began springing up in villages that were previously dieing. The town of Leixlip in County Kildare, is famous as the birthplace of Guinness beer. But prosperity in Leixlip now comes from Intel, which built a $5 billion plant there. But many smaller companies are active. Ireland has become a leading exporter of computer software. Ireland was never industrialized like England. As a result, the country with a basically pristine environment is moving from a largely agricultural economy directly into the information technology era. Many of us were appalled by rank McCourt's description of Limerick in Angela's Ashes. He came to America because jobs were so difficult to find. Now Limerick workers are making computers.

Economic Success

The recipe for Ireland's success is fairly simple--the same recipe used by other modern national economic success stories. A shift away from socialism toward a business friendly environment and low taxes. Major American corporations (Dell, Intel, and Microsoft) were attracted to Ireland.

California

Many of the vcompanies that came to ireland were companies fleeing California's Silicon Valley because of California's policies and American tax policies that punish business and businessmen. Americans will no doubt note that the policies that Ireland followed are just opposite of what the now the problem-plagued state of California followed.An notably today California has the largest number of poor people in the country and most notably an extrodinarily level of increasing poverty. Only a few countries like Venezuela have a faster rate of increase in poverty. Ireland in sharp contrast has sharply reduced poverty rates and inct\reased wages in an economy that had substantial poverty.

Programs

The European Union Transfer Payment to poor countries may have been a factor, but some economists believe they were inefficient and even counter productive. Most economists do believe that Government subsidies and investment capital did play an important role. Here the Irish Industrial Development Authority (IDA) was particularly important. Enterprise Ireland, another a state agency in business friendly Ireland, provides financial, technical and social support to start-up businesses. Following the U.S. investments, the International Financial Services Centre in Dublin led to the creation of many high-paying jobs in the expanding financial sector. [Flanigan]

Tax Revenue

And as strange as it may seem, these policies have resulted in greater tax revenue which the Government can use to address social problems. Irish Revnue estimates that they paid 80 oercent of the country's corporate and business taxes.

Wages

And of course the jobs created help solve many of those social problems by raising per capita income. A well educated population and an English speaking work force were also important factors. Americans will no doubt note that the policies that Ireland followed are just opposite of what the now the problem-plagued state of California followed.

European Union

European Union membership meant that production had access to the immense EU market. This solved the small domestic market problem. And of course was an attraction for the corporations involved. EU officias werenot all that happy aboy this anegan referring to Ireland as a tax haven.