Europe and the Transformation of the Irish Economy

This Element shows how Ireland's economic transformation towards a prosperous globalized economy was catalysed by Europe.

This Element shows how joining the European Union helped Ireland energize what had been a stagnant agricultural backwater. Ireland became a prosperous globalized hub for multinational firms exporting technologically sophisticated products and services. But there have been some severe policy errors along the way.Having stagnated for decades in the shadow of the UK, the Irish economy's performance improved after it joined the European Union (EEC) in 1973. This Element shows how the challenge of EU membership gave focus and direction to Irish economic policy. No longer dependent on low value-added agricultural exports to Britain, within the EU Ireland became a hub for multinational corporations in IT and pharmaceutical products. This export success required and facilitated a strengthening of education and social policy infrastructures, and underpinned the achievement of high average living standards. EU membership has also brought challenges, and several severe setbacks have resulted from Irish policy mistakes. But the European flavour of Ireland's structural policies (leavened with exposure to US experience) has helped it navigate the hazards of hyper-globalization with fewer political tensions than seen elsewhere.