Ireland Unleashed
A booming economy has fueled prosperity, transforming a society long burdened by oppression and poverty
- By Joseph A. Harriss
- Smithsonian magazine, March 2005, Subscribe
(Page 2 of 4)
Even Galway, on the far edge of the Gaeltacht, Ireland’s main Gaelic-speaking region and gateway to the wild mountains and deeply notched coastline of Connemara, pulsates with a sense of possibility. The city of 57,241 might still attract thousands of faithful each February to the weeklong Solemn Novena for Our Lady of Perpetual Help. But its 14,500 students, enrolled at the National University of Ireland, set the tone. On a recent Saturday morning, Alan Campbell and Francis O’Flaherty gathered in the airy atrium of a new hotel, downing caffe lattes and entering weekend activities—golf and paintball—into their cellphones.
The friends, both 29, take world travel and unlimited opportunity for granted. After graduating from college seven years ago, O’Flaherty worked in a series of banks and consulting firms in New York City, Sydney and London. Now he’s with a venture capital company in Abbeyknockmoy, 25 miles from Galway. “It’s way out in the country, but distance doesn’t count anymore,” he says. “With e-mail, the Internet and easy air travel, we can handle everything from cable TV investments in Eastern Europe, North Africa and Egypt to telecom deals in London.”
Campbell also headed for New York City, where he landed a job at a bank. Returning to Ireland in the late 1990s, he became a TV correspondent. “The ’90s brought a great change in mentality among people my age,” he says. “When I came back, I found that, thanks to the boom, a lot of people suddenly believed they could be millionaires.”
The same attitude holds true in Cork (the name means marshy place), the republic’s second-largest city (pop. 179,970). “There’s definitely more of a can-do feeling here now,” Garvan Corkery tells me over a dish of Irish stew and a slice of Gubeen, the local soft cheese, at the English Market off Saint Patrick’s Street. Corkery, a 31-year-old attorney, practices corporate law. “In the business world, it’s because Wall Street has been demystified for us,” he says. “Now we know that things like corporate law, high finance and so on aren’t rocket science.” Furthermore, he adds, “We’ve put the old British problem so far behind us that it’s even OK to be an Anglophile. You can admit you listen to the BBC!”
Beginning in the late 1980s, an economic boom known as the Celtic Tiger and fueled mainly by foreign investment propelled the country from an agricultural to a high-tech economy, altogether bypassing any heavy industrialization stage. In what The Economist called “one of the most remarkable economic transformations of recent times,” the country catapulted from one of the poorest in the European Union, on a par with Greece and Portugal, to the sixth-highest, ahead of Germany.
“When I was living in Boston in the 1980s after graduating from college, there were 60,000 Irish-born emigrants there, most under 25,” says Kevin Whelan, a cultural historian who is director of the University of Notre Dame’s Keough Centre for Irish Studies in Dublin. “In fact, there were more young Galway people in Boston than in Galway. That’s how bad it was. You have to understand that to appreciate what happened in the 1990s.” “
The economic situation here was so dire [in the 1980s] that nearly all my college graduation class emigrated,” recalls Paul McBride, 35, who now runs a software-certification facility in the western town of Ballina (pop. 6,852), near KillalaBay. He studied computer science, but there were no jobs in Ireland so he went to Seattle and worked at Microsoft for four years. “I loved the American lifestyle, and I got to see what was possible, whereas Ireland was blocked,” he says, looking out over the steel-blue waters of Killala. “When I returned to Ireland in 1997, it had been transformed: lots of choice, lots of opportunities, people very hardworking but laid-back. The old repressive mind-set was gone.”
What had happened was the result of good economic policies, hard work and a bit of the luck of the Irish. After the country hit economic bottom in the 1950s, the government stopped banning foreign investment, cut corporate taxes, made grants to modernize industry and lowered tariffs. More significantly, Ireland joined the European Union (then known as the European Economic Community) in 1974 and began receiving billions of dollars in subsidies and development funds. “The most important impact has been access to the European market that [membership] provides, which in turn has been a major attraction for foreign investment,” says Tony Fahey, a professor at the Economic and Social Research Institute in Dublin. “The real driver of our prosperity is investment by American companies”—nearly 600 at last count, which have invested nearly $35 billion and hired more than 90,000 people—“that wanted to get into the European market,” particularly in outsourcing, customer service and technical support. High-tech firms such as Microsoft, IBM, Dell and Xerox have mounted a major push into European markets from Ireland. With electronics the biggest single foreign industry sector, Ireland has become the world’s second-largest exporter of computer software after the United States.
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