Technology & globalization works in Ireland
Another good article from Tom Friedman of the NY Times - about
the transformation of Ireland from one of the poorest countries
in Europe to the richest (after Luxembourg) - summarized here.
The country that for centuries was best known for emigration, famines,
civil wars and leprechauns today has a per capita income higher than that
of Germany, France and Britain. While other more socialistic European and
Western countries are suffering high unemployment and low growth, Ireland
continues to grow by leaps and bounds. How this happened in just a few
decades is an amazing story - embracing education & globalization.
Ireland's turnaround began in the 1960s when the government made secondary
education free, enabling a lot more working-class kids to get a high school
or technical degree. As a result, when Ireland joined the European Union
in 1973, it had a much more educated workforce.
By the mid-80s, while Ireland had reaped the initial benefits of EU
membership, they were still not competitive and many educated Irish
were simply emigrating. But the new problems motivated even more change.
The government, unions, farmers and industrialists agreed on a program
of fiscal austerity, slashing corporate taxes to 12.5%, far below the
rest of Europe, moderating wages and prices, and courting foreign
investment. In 1996 college education was basically free, creating
an even more educated workforce.
The results have been phenomenal. Today, nine out of 10 of the world's
top pharmaceutical companies have operations in Ireland, as do 16 of
the top 20 biotech companies and 7 of the top 10 software leaders.
In 1990 Ireland's workforce was 1.1 million. In 2005 it will reach
2 million, with no unemployment and 200,000 foreign workers (including
50,000 Chinese). The Chinese Premier has visited Ireland many times.
Ireland's advice is simple: make high school and university education
free; make corporate taxes low, simple and transparent; seek out global
companies; open your economy to competition; speak English; keep your
fiscal house in order; and build a consensus around the whole package
with labor and management.
Thomas L. Friedman: The end of the rainbow
Markets Created a Pot of Gold in Ireland
Tom Friedman book - The World Is Flat
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