Ireland's Economy
Protectionism and Stagnation
How independent Ireland's protectionist policies from the 1930s led to stagnation and emigration, and how the 1958 Whitaker report shifted it to openness.
Ireland became independent (as the Irish Free State) in 1922.
Protectionism
- From the 1930s, under Éamon de Valera, Ireland adopted high tariffs to build domestic industry.
- An economic war with Britain (1932-38) involved tariffs on each other’s goods.
Stagnation
- By the 1950s, Ireland’s economy stagnated.
- Emigration was massive: hundreds of thousands left in the 1950s.
The Whitaker report
- In 1958, civil servant T.K. Whitaker wrote Economic Development, calling for openness.
- Ireland began attracting foreign investment with tax incentives and opening trade.
Industrial Development Authority
The IDA actively recruited foreign companies.
Joining Europe
Ireland joined the EEC in 1973, gaining access to European markets.
Parallel with India
Like India before 1991, Ireland’s inward-looking policies limited growth.
The emigrant ship
In the 1950s, a young Irishman leaves for London, one of hundreds of thousands escaping a stagnant economy.
Thinking Ireland was always open
It was protectionist until the late 1950s.
Key takeaways
- Ireland became independent in 1922.
- High tariffs from the 1930s led to stagnation.
- The 1958 Whitaker report shifted Ireland to openness.
- Ireland joined the EEC in 1973.
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