The Celtic Tiger Will Be Back

One of the effects of economic crises is that it leads people to even begin to question the principles that have contributed to success. It is therefore understandable that in spite of the rapid growth of Ireland, many people are questioning its ability to return to full growth and economic stability. To may people, it is as if Ireland's best days were behind it especially because of the serious problems with real estate crash, private debt ratios and now the large deficit in public finances.

Writing in the Irish Times, Peter Sutherland argues from first principles that Ireland will overcome the present crisis and resume its strong growth trend. I am in total agreement principally because Ireland's strengths have been in a very highly developed human resource base, an open economy and sound economic policy in many respects. the mere proportion of the budget deficit is not a perfect guide of the state of an economy's future.

An important lesson from the economic difficulties in Ireland is that even a country run on largely sound principles faces problems when an industry that is as large as real estate is run of debt and fails to reckon with common-sense principles. There's no reason why property prices should be assumed to run upwards in perpetuity. On the whole though, the calibre of the country's human resources and the export drive will keep Ireland as a leading light in Europe. In short, it has not lost its status and is still worthy of its name as the Celtic Tiger.