A tiger economy can be described as an economy of a country, which is characterized by fast growth. According to Barry (1999), an economy, which is described as tiger, is usually followed with better living standards because of industrialization, which ensures better paying jobs. There have been various economic tigers such as the East Asian Tigers. This paper will narrow down into discussing the Ireland economic tiger by the name Celtic.
Celtic tiger was used to describe the Ireland’s economy between 1995 and 2007, when the country was undergoing rapid growth in economy. During this era of economic growth, there was a dramatic expansion in industrialization. It is argued that the rapid growth in Ireland’s economy was enabled by various economical, geographical, and human factors. As Barry (1999) argues, the economy was steered by the use of low taxation policies. The low taxes attracted many foreign investors as they realized much profit from their enterprises.
It is also claimed that the tiger utilized the EU Aid to its advantage. The aid increased investment in education system and education, and thus enhance the living standards. The industrial policies were also advantageous to the tiger economy. They ensured provision of subsidies and governments grants to upcoming local and international investors. The tiger also used the Ireland’s European Union membership as an opportunity for attracting industries, especially from the international investors.
Geographically, the tiger also used various factors to foster economic growth. It is argued that a difference in time zone enabled the Irish and British employees to utilize the first and large part of each day working while the US workers slept. Some of the human factors included their communication skills. Compared to EU nationalities, the Irish people can effectively communicate with Americans. This factor was very essential as it enabled most of the US companies to choose Ireland as their European headquarters (Murphy, 1998).
There are elements of the Celtic Tiger that can be compared to the European industrial revolution and the current revolution that is happening in India. One of the elements that is common in all these economies is the dramatic increase in industrialization. Both European’s and current India’s revolution is characterized by improvement in innovation through investors. The rapid industrialization is usually followed with better paying jobs, which ensure improved living standards.
According to Murphy (1998), the Celtic tiger was also characterized by economical changes. People shifted from an agriculture-based economy to an industry-based economy. This is also what characterized the European industrial revolution and the India’s revolution. With the rapid industrialization, Celtic tiger brought about improvement in infrastructure for transportation of produced industrial goods. As Murphy points out, these were the characteristics of European and India’s industrial revolution. The other element that is common for these three economic tigers is political change. With the change from an agriculture-based to an industry-based economy in these countries, the politics also changed and rich businessmen became the forefront politicians.
In my opinion, a tiger economy should not be feared but tamed. Tiger economy has various economical political and social benefits, which when tamed, can uplift a nation economically and politically. A tiger economy can be tamed through constant and monitored expansion of industrialization. Monitored industrialization ensures moderate economic growth that can be easily managed. Constant and monitored investment with high localization of many of the new businesses can also assist in taming a tiger economy.
Related Economics essays
- Unemployment on our Economy
- Economy in Italy
- Unemployment in Mexico
- American Industrial Revolution
- Biodiversity and its Influence on Economy
- Shelf Space Price Discrimination
- Microeconomics is Concerned with the Study of Behaviour
- Ecological Economics and Sustainable Development
- Three Distinct Processes of Globalization
- Economic Protectionism