Globalization, the Celtic Tiger and social outcomes: is Ireland a model or a mirage?

Abstract

Ireland's Celtic Tiger economic boom has merited a great deal of attention as a successful model for small and peripheral states in this era of globalization. This article offers an alternative reading through examining social outcomes and interrogating the Irish model in the light of them. It seeks to answer the question whether Ireland offers a model to be followed or whether what appears to be a model is, on closer inspection, a mirage. The article begins by outlining the nature of the Celtic Tiger and surveying the mainstream interpretation of how Ireland's success shows it to be a model of what can be achieved through capturing the benefits of globalization. It then identifies the nature of the Irish model, examining the role of ‘social partnership’ and outlining the argument that Ireland is a ‘flexible developmental state’. Having described the principal features of Ireland's economic success and the means used to achieve it, as seen by mainstream scholars, the article then examines in some detail the distributional outcomes of the Celtic Tiger. Questions these raise for the positive reading of the Irish model open a more critical examination of the features of the model linked to the social outcomes described. This leads to a discussion that seeks to more adequately characterize the nature of ‘social partnership’ and of the Irish state, utilizing the concept of the competition state. The article concludes that, on closer examination, the Irish model turns out not to be a model of successful development, but a model of capital accumulation. To this extent it is a mirage and a warning about the social costs of economic success in the era of neoliberal globalization. Peadar Kirby is a senior lecturer in the School of Law and Government, and co-director of the Centre for International Studies (CIS), both at Dublin City University. His recent books include The Celtic Tiger in Distress: Growth with Inequality in Ireland (Palgrave, 2002) and Introduction to Latin America: Twenty-First Century Challenges (Sage, 2003). He is currently writing a book on globalisation and vulnerability to be published by Pluto Press in 2005.