The Irish Miracle

Seth Ackerman SAckerman at FAIR.org
Tue Jul 20 09:29:55 PDT 1999


Doug wrote:


> Wolf himself says:
>
> >Ireland has prospered by offering investors a stable, profitable,
> >English-speaking base for production aimed at the EU market.
>
> How many of those are there?
>
>

The IMF would say that any developing country could be another Ireland if it only got its policies in order. (Unless you're referring to the "English-speaking" part, which I don't think was necessarily Wolf's main point.) So, Doug, why can't Mexico get rich like Ireland can?

You can point to Ireland's uniqueness as a participant in a big, powerful currency area; but then the policy implication would be to "dollarize" Latin America, like the right-wingers say.

So why should developing countries try anything risky, like a debtors' cartel, when prudent policies and maybe a currency union with the local big boy could give them 10 percent growth rates like Ireland? (Which is now richer than its former colonial ruler, the UK.)

Seth



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