Ireland was traditionally one of Western Europe's poorest countries, a rural and intensely Catholic country from which the best and brightest left in search of opportunity elsewhere. Recessions were a routine occurrence, and high unemployment was endemic through much of the 20th century. Ireland may have thought those days were past, but the implosion of the country's recent economic miracle has kindled memories of less fortunate times. With a government in crisis, the Irish are taking to the streets and asking, "How did we get here?" In Dublin, on Nov. 22, a protester berates the current prime minister for condemning Ireland's future generations to poverty.
Ireland's period of rapid economic growth -- the era during which the country was known as the Celtic Tiger -- began in 1995. For the next 12 years, Ireland grew at an unprecedented rate, ranging between 6 percent and 11 percent annually. Much of that growth was enabled by EU financial aid, which was funneled into infrastructure investments and improvements in the national education system. Above, a group of commuters wait at a bus stop on Nov. 21, the morning that the Irish government confirmed it would request a multibillion dollar bailout from the European Union.
At the heart of the economic boom was a massive influx of foreign investment. Low corporate tax rates encouraged major companies -- from Apple to Dell to Google -- to locate their European headquarters in Ireland. Above, employees leave a Dell plant in Limerick on Jan. 8, 2009. The plant was forced to close down that month.
Over the last decade, as the Irish economy boomed, Ireland's demographic patterns began to reverse: Rather than sending emigrants abroad, it began attracting immigrants from across the European Union. Unemployment was so low that few residents of Ireland needed the assistance of government employment-services offices, like the one seen above. By 2007, an estimated 10 percent of the population was foreign-born, making Ireland one of Europe's most multicultural countries.
With its rapid growth, Ireland became an increasingly popular destination for foreign capital -- European banks were especially attracted to the Celtic Tiger's rates of return on financial investments. And with the introduction of the euro in 2000, Ireland also had access to low borrowing rates in international capital markets. Soon the country was swimming in cash. Above, visitors enjoy the view over Dublin at the posh "Gravity" bar at the Guinness brewery.
Unfortunately, the country's financial services were not nearly scrupulous enough to withstand the new influx of money, earning a reputation for being poorly regulated, if not actively encouraged by the government to be profligate in their lending. Despite a series of accounting scandals, Ireland's Financial Services Regulatory Authority never imposed any sanctions on domestic financial institutions. As early as 2005, the New York Times was calling Ireland the "Wild West of European finance." Above, on Nov. 20, a resident of Dublin crouches between two automated teller machines.
