Ireland in 2004


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Case Details:

Case Code : ECOA117
Case Length : 18 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note :Not Available
Countries : Ireland
Industry : -

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction

In the early 2000s, Ireland was considered one of the most globally competitive economies in the world. Despite its small size (population of just 3.7 million), Ireland had emerged as an attractive investment destination. A combination of factors had turned the Irish economy into a "Celtic Tiger". These included tough cuts in government spending since the late 1980s, "National Wage Partnership Programs"1 which fostered cooperative industrial relations, reduction in taxes, targeted government programs to attract Foreign Direct Investment (FDI) and financial support from the European Union (EU).

One of the most open economies in Europe, Ireland had also developed a solid reputation for its quality of life...

Excerpts >>

1] One of the most significant moves by the Irish government was designing the "National Partnership," a short-term agreement signed by the government, employers and employees to put national interests above individual gains. Launched in 1987 and renewed every three years, the first national partnership agreement put the cap on wage increases at 3% but also sharply cut personal income taxes. Left with more take-home pay, employees were relatively satisfied. At the same time, Ireland's comparatively low wages worked as a powerful tool in the government's efforts to attract FDI.

 

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