P. Breathnach, EXPLORING THE CELTIC TIGER PHENOMENON - CAUSES AND CONSEQUENCES OF IRELAND ECONOMIC MIRACLE, European urban and regional studies, 5(4), 1998, pp. 305-316
The economy of the Republic of Ireland has experienced continuously hi
gh growth rates in the 1990s, after a period of severe difficulty in t
he previous decade, As a result, Ireland is now within sight of exceed
ing average EU living standards, a situation which would reverse Irela
nd's traditional status as a peripheral European economy. The main pur
pose of this article is to examine the factors which have contributed
to this apparent economic miracle, which has earned Ireland the 'Celti
c Tiger' appellation. Particular importance is attached to the role of
inward investment, which has grown in quantity and changed in quality
in the last decade. These changes are attributed to general developme
nts in the locational behaviour of transnational corporations, especia
lly the need for access to skilled workers in an increasingly high-tec
h age. Such workers have become readily available in Ireland due to de
mographic change and state investment in education. However, while for
eign branch plants have been upgrading their skill levels and their ra
nge of functions, they generally lack strategic responsibilities and i
ndependent decision-making powers. Additional contributors to Ireland'
s economic growth have been macroeconomic stabilization, EU funding. a
nd expansion of tourism and indigenous industry. However, growth has n
ot been shared equally, but has been accompanied by increasing social
polarization between those in skilled employment and those who have un
skilled jobs or no jobs at all. This polarization could threaten the s
ystem of moderate national wage agreements which has played an importa
nt role in promoting peaceful industrial relations and in holding infl
ation to very low levels. There has also been growing spatial polariza
tion, with the great bulk of the recent growth being concentrated in t
he main cities, especially Dublin. The current growth phase is expecte
d to continue at least for the medium-term future, but could tome unde
r pressure from the emergence of competing pools of skilled labour in
other parts of Europe.