Ireland's Economic Recovery Quiz
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Questions and Answers

What was one of the main actions taken by the Government in 2009 regarding non-performing loans?

  • Institution of new taxes
  • Launched a new public service program
  • Closed down failing banks
  • Establishment of the National Asset Management Agency (NAMA) (correct)

    • The Global Competitiveness Report 2012-13 ranked Ireland 10th for its overall macroeconomic environment.

    False

    What was the total amount of the bailout Ireland sought from the IMF and EU?

    €85 billion

    The crisis led to huge debt and tax burden which severely affected Ireland’s economic growth, employment, and _______.

    <p>emigration</p> Signup and view all the answers

    Match the following challenges faced by Ireland during its recovery:

    <p>Huge losses in the Construction Industry = Undersupply of houses Weak transport infrastructure = Lack of investment in 3rd level education Over-reliance on MNCs = Economic vulnerability Brexit = Political uncertainty</p> Signup and view all the answers

    What was a significant factor in the lack of entrepreneurial tradition in Ireland during its early years?

    <p>Colonial status of the economy</p> Signup and view all the answers

    The Industrial Revolution had a significant impact on the Irish economy by employing 50% of the population.

    <p>False</p> Signup and view all the answers

    What act was introduced in 1932 to promote self-sufficiency in Ireland?

    <p>The Control of Manufacturers Act</p> Signup and view all the answers

    Which of the following companies expanded their Foreign Direct Investment (FDI) in Ireland during the 1980s?

    <p>Intel</p> Signup and view all the answers

    The Corporation Tax in Ireland was cut to 12.5% in 1994.

    <p>True</p> Signup and view all the answers

    The economic independence achieved in 1922 was termed the __________.

    <p>Irish Free State</p> Signup and view all the answers

    Which event is associated with the significant economic growth known as the 'Celtic Tiger'?

    <p>1993</p> Signup and view all the answers

    What was the name of the report produced by the Industrial Policy Review Group in 1991?

    <p>Culliton Report</p> Signup and view all the answers

    The economic growth experienced in Ireland between 1994 and 1999 was at an annual rate of _______.

    <p>9%</p> Signup and view all the answers

    Match the economic events with their respective years:

    <p>Census of Production = 1907 Self-Sufficiency &amp; Protectionism = 1932-1958 Free Trade and FDI = 1958 Financial Crisis = 2008</p> Signup and view all the answers

    Which industry was NOT a major sector in early Irish industry?

    <p>Textile manufacturing</p> Signup and view all the answers

    Match the following economic events with their significance:

    <p>Culliton Report = Recommendations for industrial reform 2008 Banking Crisis = Blanket guarantee on bank deposits Introduction of the Euro = Transition to a single European currency Programme for Prosperity &amp; Fairness = Focus on social inclusion and economic growth</p> Signup and view all the answers

    The Irish government's focus during the writing of this history was on promoting industrialization over agriculture.

    <p>False</p> Signup and view all the answers

    What factor contributed to the onset of the Financial Crisis in Ireland?

    <p>Credit-fuelled property bubble</p> Signup and view all the answers

    The gross debt to GDP ratio of Ireland was less than 25% in 2007.

    <p>True</p> Signup and view all the answers

    Identify one of the BRIC economies that shifted investment patterns away from developed economies.

    <p>Brazil</p> Signup and view all the answers

    What was one key strategy pursued by Ireland in the late 1950s regarding trade?

    <p>Establishment of the Anglo-Irish Free Trade Area Agreement</p> Signup and view all the answers

    By 1969, 70% of total exports were from manufacturing.

    <p>True</p> Signup and view all the answers

    What was the main benefit of EEC membership for Irish companies?

    <p>Access to Continental markets and reduced reliance on the UK</p> Signup and view all the answers

    In the period from 1951 to 1961, approximately _______ people emigrated from Ireland.

    <p>400,000</p> Signup and view all the answers

    Match the following entities with their established year:

    <p>Aer Lingus = 1936 CIE = 1944 Industrial Credit Corporation = 1933 Bord na Mona = 1946</p> Signup and view all the answers

    Which organization primarily aimed to attract Foreign Direct Investment?

    <p>IDA</p> Signup and view all the answers

    The Social Partnership Model was developed to hinder economic recovery.

    <p>False</p> Signup and view all the answers

    What was the primary focus of the IDA's new strategy during the recession from 1980-1993?

    <p>Attracting high output firms using best technology</p> Signup and view all the answers

    After the establishment of the IDA, industry became an important part of Ireland's economy, amounting to _______% of GNP in 1969.

    <p>35.7</p> Signup and view all the answers

    Which region benefited financially from the EEC membership?

    <p>Public sector through various funds</p> Signup and view all the answers

    Study Notes

    MG4031 Management Principles - Development of the Irish Business Sector

    • Learning Objectives: Understand the roles of Irish governments in industrial development, explain Ireland's unique industrial development pattern, and identify/discuss major business sectors in Ireland and their future prospects.

    Key Milestones

    • 1907: Census of Production in Ireland
    • 1922: Irish Free State
    • 1932: Self-sufficiency & protectionism
    • 1958: Free Trade and FDI
    • 1973: EEC Membership
    • 1980: Recession
    • 1993: The Celtic Tiger
    • 2008: Financial Crisis
    • 2013: Towards Recovery

    The Early Years

    • Ireland was largely unaffected by the industrial revolution in the early years.
    • In 1907, industry employed 20% of the population.
    • Key industries were linen, shipbuilding, brewing (including Guinness), and distilling (e.g., Harland & Wolfe).

    The Irish Free State

    • 1922: Ireland gained political and economic independence, but remained tied to the UK's currency and export market.
    • The loss of the industrialized North had a significant negative impact.
    • By the 1920s, the industrial labor force was around 100,000, only 7% of the total.

    The Irish Free State (Focus on Agriculture)

    • Agriculture was a major focus in this period and the success of agricultural was equated with success for the entire country.
    • There was insufficient entrepreneurial tradition due to Ireland's colonial status
    • This limited business opportunity for the populace, with most bright individuals entering the Civil Service.

    Self-Sufficiency & Protectionism (1932-1958)

    • This period witnessed a strong belief in self-sufficiency for economic growth and independence.
    • The Control of Manufacturers Act (1932) mandated that new firms had to have 50% Irish equity.
    • Domestic industries were protected from foreign competition with tariffs (sometimes up to 45% of the price of imported goods).
    • The period of 1932-37 also saw an economic war with the UK impacting agriculture and industry.
    • Semi-state enterprises like Aer Lingus (1936) and CIE (1944) were established to offer essential services and utilize natural resources. Bord na Mona (1946) & Industrial Credit Corporation (1933) also played a part.
    • High emigration rates (400,000 from 1951-1961) are also noted during this time period.

    The Move to Free Trade & Foreign Direct Investment (FDI)

    • Protectionism was replaced by free trade and greater market access, seen as a significant policy change.
    • The Anglo-Irish Free Trade Area Agreement (1965) was a key step.
    • The IDA actively promoted FDI (foreign direct investment) to boost job creation and exports.
    • Industries like Waterford Glass and Youghal Carpets started to develop, driven by this new approach.
    • Industry became an important part of the economy, reaching 35.7% of GNP in 1969.
    • Manufacturing exports grew significantly, reaching 70% of total exports by 1969.

    EEC Membership (1973)

    • Opened up opportunities for Irish companies to enter the Continental markets and reduce reliance on the UK market.
    • EEC membership was a significant selling point for attracting FDI, particularly in the USA (e.g., Apple, Verbatim).
    • Financial benefits included the European Social Fund, Regional Development Fund, and later Structural and Cohesion Funds.

    Recession & Recovery (1980-1993)

    • FDI was negatively impacted by a U.S. recession, with competition from other countries becoming stronger.
    • The IDA implemented a new strategy to attract high-output firms and multinational companies using the most modern technologies, capable of creating links across the Irish economy.
    • A new focus on promoting human capital became apparent in Ireland.
    • Social Partnership Model (1987) was a critical piece of architecture for recovery.
    • The IDA capitalised on the start of recovery by encouraging foreign direct investment; for example, Sandoz, Motorola and Intel came into Irish markets.
    • The 1991 Culliton Report offered recommendations for industrial policy which were subsequently gradually implemented.

    Emergence of the Celtic Tiger (1993-2007)

    • The Programme for Competitiveness and Work, implemented in 1994, promoted pay moderation and tax concessions.
    • Corporation tax was reduced to 12.5% in 1994.
    • Significant investment came through the European Structural Funds (between 1989 and 2000, totaling €9.52 Billion).
    • The Euro currency was introduced in January 2002.
    • Partnership 2000 (1997) fostered social developments, similar to previous social partnership arrangements, including efforts to reduce unemployment.
    • Between 1994 and 1999, Ireland saw 5 years of rapid economic growth at ~9% per annum.
    • The Programme for Prosperity & Fairness (2000) encouraged Ireland to catch-up with other successful economies during this period.

    Demise of the Celtic Tiger (Mid 2000s Onwards)

    • Growth steadied in the early 2000s, but was related to cheap credit and increased property speculation.
    • The construction sector became disproportionately large in the economy.
    • Globalisation trends saw a shift in investment from developed countries to emerging economies (e.g., BRIC countries).

    Financial Crisis and Post-Celtic Tiger Ireland

    • Early warnings of the financial crisis were evident in the USA in 2007, relating to the sub-prime mortgage market.
    • Negative flows into Ireland resulted in a property bubble and unsustainable borrowing by Irish banks.
    • The 2008 banking and financial crisis led to the Irish government's guarantee of the deposits and debts of the largest Irish banks.
    • Ireland sought a bailout from the IMF and EU in 2010, totalling €85 Billion to keep the country afloat and maintain essential public services.
    • Government debt increased – by 2013, the ratio of gross debt/GDP rose over 120%.

    Financial Crisis and Post-Celtic Tiger Ireland (Continued)

    • The crisis resulted in significant debt and tax burdens, affecting economic growth, employment and migration.
    • Ireland's competitiveness in 2012/2013 ranked low on the Global Competitiveness Report.
    • There were significant challenges in recovery, including large losses in the construction sector leading to housing shortages.

    The COVID-19 Pandemic and the Future?

    • The impact of the pandemic as an exogenous shock is yet to be fully determined.
    • The COVID-19 pandemic underscored the volatile/uncertain/complex/ambiguous (VUCA) circumstances for businesses.
    • Developments like de-globalization, supply-chain disruptions, health & safety management, remote/flexible working arrangements, and global virtual collaboration were important.

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    MG4031 Development Of Irish Business Sector PDF

    Description

    Test your knowledge on Ireland's economic recovery post-2008 financial crisis. This quiz covers government actions regarding non-performing loans, international rankings, bailout amounts, and challenges faced during recovery. See how well you understand the impact of these events on Ireland's economy.

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