Before the Boom: The Historical Background

The Celtic tiger boom was a major departure from previous experience since the Irish economy had a long previous history of relative weakness compared to many other European countries. The Irish economy had a chronic problem with insufficient generation of employment, resulting in high rates of emigration, as well as relatively low incomes. Previous attempts to promote industrial development included a period of protection and a focus on indigenous industry, followed by a more externally oriented free trade approach with a welcome for foreign investment after the late 1950s. By the mid-1980s, just before the boom, the economy was facing very serious problems, with record unemployment, a high rate of emigration and a major government financial crisis, as well as an industrial sector that was in crisis and an industrial policy that appeared to be failing.