Ireland's rising success

Ireland has been an interesting country to learn about, not just on broad view over the economy of the country; but studying about specific events that are driving the country. Ireland is a world leader in going "Green", which in fact has given the country cheaper electricity, a leading car producer for Hybrids, and gives the ability to dig into to there natural resources less and sell more. Along with the exportation, Ireland has in sourced many jobs and laying claim to some of the biggest companies in the world that call Ireland home. Ireland is becoming a well rounded country with not just industry, as well as taking care of its nation's people.

Even with the country as well suffering from a global recession, less that 8% of the country is under the poverty line. This showing the cost of living in Ireland is less than most countries, as well as showing a the prosperity of a fast growing nation. Ireland has also managed to take more advantage of a thriving tourism industry that has helped small businesses more so than other countries in the European Union, that is all connected by the EURO. Though, Ireland has been in its past famines and collapsing to rebuilding economic infrastructure; Ireland still manages still to be in five economies in the world that is economically free to citizens.

The study on Ireland has opened up my mind more about other economic solutions and that there is more than one way to drive a country economically. I will find myself still looking up Ireland, because it is now become a routine. This will further my knowledge beyond the semester.

Car Industry

I previously went over how Ireland went "green" and the nation has becoming eco-safe. This nonetheless was a stepping stone for a rising industry and Chevrolet wants in. With Nissan already being the largest electric car producer in Ireland; Chevy has turned towards the nation for a push on their product line for further with more production on their own electric car, even pushing the Volt to makes its first effort in Ireland itself to go again the Nissan leaf. The product that is causing the incline in the industry is the actual car battery, "batteries which are currently in the range €10,000 to €15,000"(finfacts.ie)".The industry thanks to its "green" path is becoming one of the largest car industries and soon to be in electric cars.

In return for all this, Ireland will be helping its residents with a rebate on the purchase of an electric car as well. Much like America did with "clash for clunkers", Ireland for "those who purchase electric cars will be eligible for a €5,000 grant" (finfacts.ie). Not only will these help the nation’s people, but promise growth to any other car companies that the product it gives is already on a rise.

Economic Freedom

After time dealing with Ireland I have realized how great the country actually is. In recent rankings Ireland has ranked third in an economic freedom, even beating United States which was ranked fifth. This was based on comparison of other countries, so size, government, property, labor, etc. all put into thought. This is nothing new for "The top four nations remain unchanged from the 2007 Index" (insideindianabusiness.com). Even with a the world in comparable economic instability, Ireland has stood strong. Ireland's score was based on an "overall 82.35/100" (insideindianabusiness.com). Proving Ireland is setting the scale for many countries and actually making an example for other countries that has gone through distress much like Ireland has.

Irelands Thriving Insourcing.

In part post I spoke of major companies in Ireland, but never gave one of the major factors of why a business would love to call Ireland home. Costs to run a business in Ireland has companies like DELL and even Google (Originally starting in Ireland). Taxes are so low "Google is expanding it's base in Ireland (Google Expanding It's European Base, Dublin) where it has it's European base and where corporation tax rates are 12.5%" (hereisthecity.com). Even Dell has taken advantage in Ireland. Even though "Dell has previously stated that should these tax rates change it will leave Ireland, however, even at 17.5%, Ireland's tax rates would still be among the lowest in the Western world"(hereisthecity.com).

With this though, Microsoft is verging on Dublin to transfer some of its major corporation there, with some of the business there already. A subsidiary of Microsoft, Round Island One; is has one of the because incomes in Ireland and the ratio between what companies pay here in America and out in Ireland its not greed, but good business planning.

Natural Resources

Many countries have made choices in what natural resources they use and what they hold back like the oil in the Gulf of Mexico. Ireland has made its best of all its resources and being an island with oil off the coast and fertile lands, it is a self sustaining country. Ireland major natural resources are "natural gas, peat, copper, lead, zinc, silver, barite, gypsum, limestone, dolomite" (indexmundie.com). All production on these are still on a rise but the natural gas and oil drilling due to government planning to halt further search for new drilling hot spots for economic reasons and the option to stay "Green" (Earth Friendly).

Ireland has had other issues in why its countries resources are not at large anymore. Due to competition "contracts with foreign companies are preventing us from selling it and transforming us into the Saudi Arabia of Europe" (eirigi.org). This is alarming, seeing how Ireland's oil reserve could clear the national debt. Ireland in past years has had water issues as well with spill offs from agriculture and pollution. These issues seem common though in most countries and they are dealt with.

Ireland's Electronics

Ireland is a major electronics provider in western Europe. Many well known companies have claims in Ireland, "International electronics companies such as Intel, Analog Devices, Dell, IBM, and Cisco have located major manufacturing, R&D, and Fab facilities in Ireland" (enterprise-ireland.com). The major equipment that the electronic industry in Ireland provides is mostly semi conductor components and data processing materials. This have given many companies a monopoly over Europe since most of the companies are known around the world for this equipment, so placing it the industry in Ireland gives the companies much advantage to waterway exporting.

The key to Ireland's success in the electronics industry is its investments in smaller electronics firms, which bring in over hundred million Euro annually. This is only as well prosperous because "Indigenous sectors is dominated by exporters providing leading-edge technology products in a global niche" (enterprise-ireland.com). All this had made Ireland known more for technology and less for the blarney stone atop the caste.

Ireland's famine past

In the 1840's America was bombarded by Irish immigrants, but all of it was because of a potato famine that dismantled the country in every way, especially economically. I found this to be an important part Ireland's economic history because it directly impacted America as well and shows how one countries economic troubles can advert to another country. Firstly the destruction of the crops caused a ripple affect, "In the wake of the famine, the 19th century witnessed the de-industrialization of Ireland"(trincoll.edu). This lead to much of Ireland's population running for other more economically successful countries like America. Then with the exportation of agricultural crops diminished and caused return from it to suffer, making many business disappear. This major famine would keep Ireland behind until the turn of the century, but it would not be the last suffrage the nation would see. Though, if the potato famine was not to happen, it would have better prepared Ireland for future problems, because of how powerful economically the country was becoming before the famine.

This though, was an important part of the history in Ireland because of what it caused and if other countries looked back in their own history, they would see a large change in Irish immigrants and the affect it caused.

Household Economy

Everyone knows the one thing that drives the economy is the people of the country. People are the beginning of any economy, they work for funds and they spend funds, they get loans, pay loans, give money away, and they give all the power to the government to make the circle go constant. A countries cost of living could be the difference in a driving economy and a third world country with Ireland being no different. Ireland is dealing with a new blow to the cost of living with "Taxation for Irish expats as well as those living in Ireland are really quite significant and may well affect Ireland’s considered standing as a low taxation nation in which to live and work for example"(shelteroffshore.com). This with at hand with a realistically low tax on the citizens of the country may force many to find work elsewhere due to low pay.

The average income a person in Ireland is about 33 thousand, which could conclude per household in many situtations. Ireland have a steady incline on the average income has finally slowed down. The change in the recent decade was "15,128 to 28,035, a 61% change"(iariw.org). Now with the taxes changing and the pay rate not climbing in Ireland, the people are at risk of there way of life.

Global Warming VS. Economy

Little do people know in our country the affects of global warming, because it does not quite hit close to home. For Ireland though, the climate change actually effects there economy and the way of life. Ireland is one of the leading fighters in global warming and it has turned out to be big business on the island country. The country plans to cuts its emissions by 40% by 2020 and to do this they have brought in the leading companies all around the world to plan and construct mechanisms to reduce waste. The government along with others part of the European Unions have stepped up research and new ways to counter act global warming. Ireland with other countries, "Since 2002 the EU has provided grant-aid to the tune of €38m to help fund recycling and waste recovery facilities" (eumatter.ie). The governments puts its hand in "Projects that have been grant-aided include bring-banks, civic amenity sites, composting facilities and material recovery facilities" (eumatter.ie). This has brought jobs to the country and actually helped import jobs from other countries residence to Ireland to work.

This is not all good news for Ireland, because whatever is done to to make Ireland, it has an opposite reaction on industries that first powered the country. Ireland has completely cut out leaded petrol, add more cost to fuel to the public and not allowing the public a choice for cheap fuel, but having a standard how to lifestyles. This also slows down the production of petroleum products and add expense to the industry, which then effects the pockets of the people of Ireland. Also like many states in the United states, Ireland as a whole has strict emissions testing and bans cars that causes a excess amount of pollutants.

Though the fight again global warming for Ireland actually prevents losing much of the countries beauty and keeps the the mass in Northern Island in order for the time being. It is cost the population larger taxes and a living standard many cannot always afford.

Ireland's Black Market

Like many countries,some issues can not be controlled by the government but do affect the nations economy. Ireland is no different in this case with issues of their own with an Irish black market. Ireland from the outsiders point of view can easily give the ignorant statement that alcohol counterfeiting and smuggling would be the biggest issue, but actually illegal prostitution is taking its toll on the country. Recorded last year, "According to the United Ireland Party, over 1,000 men in Ireland pay for sex in the country every day" (Gae, RTE news). This has affected many of the cities like Dublin and with such dealings come other issues like drugs. The drug market is actually the most profitable illegal trade in the country, Based on the following estimates, the illegal drugs market in Ireland is worth 628 Million Euros ($927 Million)" (Burke, Sunday Post). This includes such drugs as Heroin, Marijuana, Cocaine, and Ecstasy.

Though these to major issues do come hand and hand with each other; the largest issue in Ireland isn't an illegal product, but the smuggling of it. Cigarette counterfeiting and smuggling have seized the legal market profitability in Ireland, detouring a government tax that would help fuel the economy. Sharing this issue with there neighboring country, "Custom Officials in the United Kingdom and Ireland state that one in three cigarettes smoked in each country was smuggled into the country (Ass. Press)." Ireland's law enforcement have actually have dedicated more time to stop this illegal trade more than anything else, which has actually stalled enforcement on the other issues like drugs and Prostitution. Every country has its own problem and Ireland proves no different to this with there own black market.

Tourism Industry

One of the most important ways for a country to bring in revenue is a thriving tourism industry. Ireland is no exception to this, because of it being one of the major ways many business stay afloat with the economy today and bring in big bucks during seasonally every year. In recent years Ireland has seen a downward trend in the tourism industry mostly do to the cost of living in today's world but not too long ago, with "Irish tourism industry welcomed a record 7.8 million visitors in 2007; Numbers were boosted by visits from relatives of large migrant worker population from Eastern Europe" (finfacts.com). Though this industry is enhanced by migrants workers families, this shows clear fact that Ireland is still a growing industry for jobs and could enhance the population because of tourists who once come to visit may come to stay. This revenue from tourism though has an average of over six billion Euro a year increase every year, bringing in cash flow to the small business sectors as well as major corporations.

The capital for of tourism though is still reliant on Dublin, Ireland and northern Ireland itself. The rest of the country still remains questionable for appeal by tourists outside the country.
Ireland has evolved itself from more than just historical sights like the Blarney castle and natural wonders around the large island, but it has set its a claim for older generations and must now appeal to a age. Ireland though staggering for new ways of outside income due to economic downfalls, they still foresee a rise in visitors to the beautiful lands that drive much of the economy.

Dublin

Originally established as a viking settlement in 988 A.D., Dublin is the nations capitol of Ireland. Dublin after many years of economic failure, in the early 1990's finally started to develop itself into a high tech oriented city. With much of Dublin being split into sectors in the medical field, information technology, and a large financial service. It has become prime location for many companies like Intel and Wyeth Pharmaceuticals. Currently though, the city is under revitalization to modernize the rest of the city to compliment the business sectors and attract other large companies to the nation's capitol.

Dublin also holds 40% of Ireland's population, giving companies a limitless work force. The country itself does target its people the best it can as well, "Ireland’s recent economic strategy has focused on creating an attractive and fiscal financial environment to complement the English speaking, young and well-educated population that has facilitated a major economic boom, which has been labelled the “Celtic Tiger”"(fmg.uva). Even with the economic issues the the world today, Ireland still does show progression in its capitol and Dublin does show the signs of in sourcing more foreign companies since they will have the backing of a strong work force.

Irelands Recession

All around the world people feel the major affects of a world economic downfall and of course Ireland is no different. Ireland like man others have took hits in their employments rate and housing market, which seems to have a ripple affect on everything else that is taking a decline with it. With the unemployment rate still at a steady decline going up around "1% every three months since December" (RTE.ir). The unemployment rate in Ireland is now around 14%, which is a substantial difference from its 6% in earl 2008. Ireland has been hit hard by the economic downfall and with a labor force of over twenty two million, it has actually started going down with people being forced to find other means of living in other places moving away from the island nation.

Also with the work force disappearing and taking a major hit, it is only natural that housing would then next to take a downfall. Housing prices are at a all time low for the past 20 years in Ireland, at over 19% going into 2010. It has been on this receding line since late 2006 even before the the world economic turn. Only in the recent months has it been the most devastating to the market with a % change of .03 every month.

These two markets lead to other market drops as well, much like we have seen in the United States and all around the world. With this study of Ireland; thus far, has only mirrored the same experiences and problems that we see in our own country. So we could not only sympathize, but understand the issues that they are having.

Ireland's Economy

For the first post I will talk about the basics of Ireland's economy. Ireland's economy is mainly driven by exports at this time, but it was not only until recently it has become this way. It was mainly an agricultural country; but do to industrialization, the country has followed in the paths of other European nations in more way than one. The country itself shares currency by using the Euro (valued more than the U.S. dollar), but like the rest of the world it was hard hit in recent years by a resession. At the point of time Ireland is working to bounce back from a hard lost and now "implemented a series of national economic programs designed to curb price and wage inflation, invest in infrastructure, increase labor force skills, and promote foreign investment" (CIA.gov). Due to this though, they must work with the other European countries to make it work and compromise.

Ireland itself is a self sustainable island nation and in fact with today's world economy, the people of the nation are not as bad off as many around the world. 7% of the nation is under the poverty line, which is better than most. The household income average is around 34,000 a year, but with recent years the countries growth has actually dropped by 3%. Its countries inflation has gone up as well by .8% a year in recent coming year. With all this though, the country has proven that it has the ability to bounce back and evolve to an improving economic power.