30 June 2005

Ireland today is the richest country in the EU after Luxembourg [International Herald Tribune]

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The country that for hundreds of years was best known for emigration, tragic poets, famines, civil wars and leprechauns today has a per capita gross domestic product higher than that of Germany, France and Britain. How Ireland went from the sick man of Europe to the rich man in less than a generation is an amazing story. It tells you a lot about Europe today: All the innovation is happening on the periphery by those countries embracing globalisation in their own ways – Ireland, Britain, Scandinavia and Eastern Europe – while those following the French-German social model are suffering high unemployment and low growth.

Ireland’s advice is very simple: Make high school and college education free; make your corporate taxes low, simple and transparent; actively 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 – then hang in there, because there will be bumps in the road – and you, too, can become one of the richest countries in Europe.

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