Economic history of Ireland facts for kids
Ireland's economic story began a very long time ago, right after the Ice Age, when the first people arrived. These early settlers mostly fished, hunted, and gathered food. Around 4500 BC, farming started, and people began growing crops and raising animals. Later, around 350 BC, the Celts brought iron technology to Ireland.
For many centuries, from the 1100s to the 1970s, Ireland mainly sent its goods, especially food, to England. But in the 1900s, Ireland's economy changed a lot and grew stronger. Today, Ireland is one of the wealthiest countries in the world when you look at its GDP per person. This means the country produces a lot of value for each person living there.
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Early Ireland: From Stone Age to Iron Age
The very first people in Ireland were explorers who lived by fishing, hunting, and gathering food. This way of life was the main part of Ireland's economy for about 3,500 years.
Around 4500 BC, big changes happened. Farming and making pottery became common. People started bringing sheep, goats, cattle, and grains like wheat and barley from Britain and other parts of Europe. Wheat and barley were the main crops grown.
Later, around 2500 BC, people in Ireland began working with metals, especially bronze. They made many things like swords, axes, daggers, and musical instruments. Mining also started around this time. Mines in Cork and Kerry produced a lot of copper during the Bronze Age.
The Celts arrived in Ireland around 350 BC and brought with them the skill of working with iron. They set up kingdoms and rules, which helped organize the economy for the first time.
In the 1100s, the Normans invaded Ireland. During these times, most people were subsistence farmers. This means they grew just enough food, like oats and later potatoes, to feed themselves and their families. An important fishing industry also grew on the south coast, catching and exporting pilchards.
Ireland in the 1700s
The 1700s brought many improvements to Ireland's infrastructure. New turnpike roads were built, starting in 1734. Important canals like the Grand Canal (from 1756) and the Royal Canal (from 1790) were also constructed. These canals helped move goods around the country.
During this century, trade between England and Ireland was very important for England. Landlords who lived outside Ireland, called "absentee landlords," collected a lot of money from farm rents. Ireland became a major exporter of salted beef, pork, butter, and cheese, especially through the city of Cork. These foods were sent to England, the Royal Navy, and the sugar colonies in the West Indies.
Even though Ireland produced a lot of food, many people were very poor. A terrible famine in 1740–41, caused by bad weather, led to the death of about a third of the population in some areas. Despite this, Ireland's population grew from about 2.5 million in 1700 to 5 million by 1800.
Irish trade faced challenges because of laws called the Navigation Acts, which limited what Ireland could export. These laws were removed in 1779, which led to a short period of economic growth in the 1780s. As competition grew from other countries, Irish landowners started growing grain for export instead of raising animals. Most Irish people then ate potatoes and groats. New important buildings like the Royal Exchange and the Custom House were also built in Dublin.
Ireland in the 1800s
The 1800s began with a big change: Ireland joined with Great Britain to form the United Kingdom of Great Britain and Ireland in 1801. This had many effects, especially for Irish Catholics who hoped for more rights, but these changes took a long time to happen.
For most of the 1800s, the only factories in Ireland were textile mills in the north, and famous factories like the Guinness brewery and the Jacob's biscuit factory in Dublin. Ireland mainly supplied cheap raw materials like wood, beef, and vegetables to the more industrial British economy.
Ireland's economy had big ups and downs in the 1800s. There were times of growth, like during the Napoleonic Wars. But there were also very difficult times and several famines. The worst was the Great Famine from 1846 to 1848. During this terrible time, about 1 million people died, and another million had to leave Ireland. Millions more left in the years that followed.
Ireland's economic problems were partly because farms were very small. Families often divided their land among all their sons, making farms tiny. On these small farms, only potatoes could be grown in large enough amounts to feed a family. Also, many landlords who owned the land lived elsewhere and didn't manage their estates well.
When a plant disease called potato blight destroyed the potato crop in 1845, many rural people couldn't get other food like wheat or livestock, which was being sent to Britain. The British government at the time believed in a policy called laissez-faire, which meant they thought the government should not interfere much in the economy. While some money was raised by charities, the government's slow action made the problem much worse, turning it into a catastrophe. Many farm laborers were wiped out.
The famine led to a huge wave of Irish people moving to the United States, Canada, Australia, England, and Scotland. This created a large and influential group of Irish people living abroad, known as the Irish diaspora. They often supported movements for Irish independence. From 1879, a "Land War" began, and by 1903, many farmers were able to buy their own land.
In eastern Ulster, the Industrial Revolution led to fast growth of cities. Belfast grew from 7,000 people in 1800 to 400,000 in 1900, becoming larger than Dublin.
In the 1890s, the Irish agricultural cooperative movement became very strong. Groups like the Irish Agricultural Organisation Society helped farmers work together. This greatly improved Irish agriculture, especially in dairy farming, and also played a part in the growth of Irish nationalism.
Ireland's Economy Since Partition
After the War of Independence, most of Ireland became independent from the United Kingdom. Twenty-six counties of Ireland formed the Irish Free State, which later became the Republic of Ireland. The other six counties remained part of the UK as Northern Ireland. There was already a difference in the economies of these two parts, but after the split, they grew even more apart. Belfast became the economic center of the North, and Dublin became the capital of the Free State.
The split had a big impact on the border areas. For example, County Donegal was cut off from its natural economic hub, Derry. The rail network also struggled to operate across two different economic areas, and many cross-border lines eventually closed.
Both parts of Ireland used the pound sterling (the British currency) until 1979. This meant that any inflation or deflation in the value of the pound affected both regions, and interest rates were decided in London. This link to sterling showed how much the economy of the South depended on exports to and money sent from Britain, even after it became politically independent.
Generally, the economy of the Republic was weaker than that of the North for most of the 1900s. It was mainly based on agriculture, often on very small farms. In 1932, a policy called protectionism was introduced, which made the economy more isolated. From 1945 to 1960, Ireland missed out on the economic boom happening across Europe, and 500,000 people left the country. A major policy change happened in 1958, and the Republic slowly started to join the industrial world. Most Irish exports still went to Britain until 1969. The economy began to grow when Ireland joined the EFTA.
Meanwhile, in Northern Ireland, main industries like shipbuilding and textiles started to decline from 1960. This decline worsened during the 1970s due to the period known as 'Troubles', even with government investments.
On the other hand, after a difficult period in the 1970s and 1980s, the Republic of Ireland experienced a huge economic boom called the "Celtic Tiger" era. This was driven by high-technology industries that set up in the country in the mid-1990s. The South's economy also benefited a lot from European funds after 1973. It grew significantly until 2007, but without enough controls, which led to the economic crisis of 2008.
However, since 2014, the Republic of Ireland has seen strong economic growth again, sometimes called the "Celtic Phoenix."
Images for kids
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Traditional land use in Ireland.
