FDI played a vital role in Ireland's transition from a protectionist economy to an export-focused economy. In the 1950s and 1960s, Ireland worked to attract FDI through tax incentives and lowering trade barriers. This resulted in over 450 foreign companies establishing operations in Ireland over 10 years, including major companies like Pfizer and Gillette. Foreign investment accelerated Ireland's economic growth and led to the emergence of Ireland's "Celtic Tiger" economy in the 1990s, with GDP growth reaching 8.5% driven by investments from American tech companies like Intel. However, Ireland also experienced disadvantages like high unemployment, economic crises that hit the country hard, and overreliance on multinational corporations.

1. FDI and IRELAND’S TIGER ECONOMY
• MANOJ KUMAR
• SHASHANK SHARMA
• SHASHANK S TIWARI
• SHASHANK TYAGI
• SHASHWAT SHEKHAR
• SUKANT CHATURVEDI
• TARUN K GOYAL

2. EARLY PROSPECTS
• Underdeveloped infrastructure, basic facilities lacking
• High unemployment and emigration
• Non existent manufacturing sector
• Agriculture based economy, largely dependent on trade from UK
• Education sector in bad condition

3. Fifties and Sixties
• The Finance Act of1956 introduced EPTR
• Joined IMF and World Bank and relaxed restrictions on Control of
Manufacturers Act
• Unilaterally lowered tariffs to encourage foreign investments
• Ango-Irish Free trade Agreement was concluded
• Ireland joined GATT

4. Role of Industrial Development Authority
• Formed to attract new investments, in accordance with the favourable export focused
industrial strategy
• Targeted Irish-Americans. ( Phizer-John Mulchay)
• Over 10 years 450 companies negotiated
• Selection Criteria -
• Basic and Social economic criteria
• Best chances of commercial and economic stability
• High dependence on scarce human resources
• Take advantage of natural resources to conserve other resources

5. Seventies
• Growing foreign investment
• Oil Crisis Oct 1973
• High unemployment
• New government continued the trend of deficit spending
• Native industry not growing

6. 80’S
• Deficit 12% of GDP in early 80s
• Unemployment over 17%
• Macroeconomic crisis discouraged firms like AT&T & Black and Decker
• 22mn Irish Pounds debt
• Curbing public sector expenditure was the government’s main agenda
• PNR introduced in 87

7. UNLEASHING THE TIGER
• GDP growth rate reached 8.5%
• Propelled by American IT boom in the early nineties
• Export sector became more competitive by joining EMS
• IDA was able to lure target companies (INTEL)

8. Advantages of FDI in Ireland
• Played a vital role in facilitating Ireland’s transition from primarily a protectionist
economy in the 1950s
• Leading exporter in sectors including, technology, pharmaceuticals
• Expenditure on Irish goods and services.
• Introduction of EPTR sent a strong message to IMF and World bank.
• By 1970 companies like Gillette- Braun, Digital, Cross Pens were established
• American IT boom in 1990s

9. Advantages of FDI in Ireland
• IDA through PNR brought labor intensive industries to decrease
unemployment.
• FDI resulted in low debt to GDP ratio and curbed deficits.
• Integration of European market in 1992.
• Employment opportunities offered by Intel
• Presence of HP, Dell, Gateway.

10. Disadvantages of FDI in Ireland
• In spite of growth rate of 4%, Unemployment, poverty were plague.
• High dropout rate was prevalent
• Throughout export focused.
• Foreign firms accounted for 1/3rd of industrial employment.
• High borrowing to increase welfare spending.
• EEC combined with tariff reduction resulted into high competition.
• Unemployment surged to 17% in 1982.

11. Disadvantages of FDI in Ireland
• During 1990s unemployment was still at 16%
• Huge gap between GDP and GNP
• Economic crises hit Ireland hard.
• Celtic Tiger because of US Economy?
• Transfer Pricing

12. Conclusions
• Ireland should continue to be a part of European Union.
• Ireland’s economy may be trapped in stagflation.
• Should look to boost investment in Education.
• Foreign Companies should aid in development of infrastructure.
• Diversified companies should be invited for FDI.

13. • THANK-YOU