Ireland just cannot seem to catch a break. There is a long thread of tragedy and melancholy that runs through Ireland's history, and recent economic developments would seem to suggest that the more things change, the more they stay the same. For now, the country once known as the Celtic Tiger is facing hard times once again and prosperity seems a long way away. (For related reading, take a look at Why U.S. Investors Should Care About "PIGS".)
The Irish Miracle
Ireland does not have a long history of economic success. Economists and historians still argue about the reasons why, but Ireland never really participated in the industrial revolution, and the well-known famine in the 1800s began a pace of mass migration that lasted more than 100 years. Simply put, Ireland spent much of the 20th century as a relatively poor (at least by Western European standards), largely agricultural country with a large public sector and heavy state involvement in the economy.
All of that started to change in the 1990s. The national government reduced its direct involvement in the economy, brokered social partnerships between business, unions and itself, significantly cut corporate taxes, and actively encouraged export-focused industry. The result was nothing short of remarkable - Ireland produced GDP growth on par with Asian growth stars like South Korea, Taiwan and Hong Kong, unemployment fell, and the government found itself able to invest in social services like education and infrastructure.
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http://financialedge.investopedia.com/financial-edge/1210/The-Story-Behind-The-Irish-Meltdown.aspx
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