Economic Gains
Although inflation and an unfavorable balance of trade remained difficult problems, Ireland made significant strides toward economic stability through the 1950s and '60s. In 1964 the government completed a five-year plan of economic development, which exceeded its goals. A feature of the program was the offer of tax incentives to foreign investors. Partly as a result of such programs, the rate of economic growth increased from about 1 percent per year in the 1950s to more than 4.5 percent in the late 1960s. It was officially reported in 1964 that more than 200 factories had begun production since 1955, most of them with foreign participation. A second plan began that year with a goal by 1970 of a net increase of 50 percent in the gross national product over the 1960 level. The improving economic circumstances were regarded as the main cause of a decline in emigration, ending a population decline that had continued unabated for more than a century. Political Developments. With economic stability came a new measure of political stability and a decline in traditional anti-British feeling. As early as 1957 Prime Minister Costello, who regarded the terrorist activities of the IRA as damaging to relations with Great Britain and tending to prolong the partition of Ireland, had called for forceful action against the organization. Costello was defeated for reelection, but early in 1958 his successor, De Valera, publicly agreed that unity could not be achieved by force. In June 1959, De Valera, at the age of 77, was elected president, and Seán Francis Lemass (1899-1971), deputy prime minister, became prime minister. Opposition to IRA activity, plus a decline in the active membership, led to the announcement in February 1962 that the group had abandoned violence. Nevertheless, Ireland continued to suffer occasional acts of terrorism. In 1966 Prime Minister Lemass resigned. The Fianna Fáil won the ensuing elections, and John Mary Lynch became prime minister. To reduce unemployment and increase exports, he tried to build up industry in order . An increase of violence between Protestants and Catholics in Northern Ireland was followed by IRA terrorist activity in the Irish Republic. In 1971 the Dáil banned the purchase or holding of arms for use outside Ireland. In 1972 the government required the surrender of all firearms. Also in early 1972 Ireland signed a treaty joining the European Community, effective January 1, 1973,a move favored by 83 percent of the voters; and, by referendum, ended the special constitutional status of the Roman Catholic church. Shifts in Power: Hoping to strengthen his party, Lynch called elections in February 1973. A coalition of the Fine Gael and Labour parties gained a slim majority, however, and Fine Gael leader Liam Cosgrave became prime minister. Fianna Fáil returned to power in a government headed by Lynch in 1977; in 1979 Lynch was replaced by Charles Haughey (1925- ). In the late 1970s and early '80s the Irish government faced increased domestic terrorism by extremist Irish nationalists. Ireland also had a high rate of inflation and suffered some economic dislocation from membership in the European Community. Amid rising unemployment, elections were held in 1981, and the coalition government was led briefly by Garret FitzGerald (1926- ), head of Fine Gael. Inconclusive elections in February 1982 returned Haughey to power, but another election, in late 1982, brought FitzGerald back. In 1985 FitzGerald signed a pact with Great Britain giving the Irish Republic a consultive role in governing Northern Ireland. The collapse of the FitzGerald government in January 1987 led to new elections one month later. Haughey won a single-vote majority in the Dáil Éireann and became prime minister once again. FitzGerald subsequently resigned as Fine Gael leader. After inconclusive elections in June 1989, Haughey formed a new coalition government. In November 1990, Mary Robinson (1944- ), a feminist lawyer who ran with Labour and Workers' party backing, became the first woman ever to win election as president of Ireland. Haughey resigned as prime minister and leader of Fianna Fáil in early 1992, amid allegations of scandal; his former finance minister, Albert Reynolds (1932- ), was chosen to replace him. In June 1992, Irish voters ratified a treaty strengthening political and monetary integration within the European Community. Mary McAleese (1951) succeeded Ms. Robinson in 1997 as President. Born of a Catholic Belfast family, Ms. McAleese is actually not a citizen of Ireland but Great Britan,and because residents of Northern Ireland can hold office in the Republic, such was the case for the new president whose views and are nearly identical to that of Ms. Robinson.
14.Economic Gains.Although inflation and an unfavorable balance of trade remained difficult problems, Ireland made significant strides toward economic stability through the 1950s and '60s. In 1964 the government completed a five-year plan of economic development, which exceeded its goals. A feature of the program was the offer of tax incentives to foreign investors. Partly as a result of such programs, the rate of economic growth increased from about 1 percent per year in the 1950s to more than 4.5 percent in the late 1960s. It was officially reported in 1964 that more than 200 factories had begun production since 1955, most of them with foreign participation. A second plan began that year with a goal by 1970 of a net increase of 50 percent in the gross national product over the 1960 level. The improving economic circumstances were regarded as the main cause of a decline in emigration, ending a population decline that had continued unabated for more than a century. Political Developments. With economic stability came a new measure of political stability and a decline in traditional anti-British feeling. As early as 1957 Prime Minister Costello, who regarded the terrorist activities of the IRA as damaging to relations with Great Britain and tending to prolong the partition of Ireland, had called for forceful action against the organization. Costello was defeated for reelection, but early in 1958 his successor, De Valera, publicly agreed that unity could not be achieved by force. In June 1959, De Valera, at the age of 77, was elected president, and Seán Francis Lemass (1899-1971), deputy prime minister, became prime minister. Opposition to IRA activity, plus a decline in the active membership, led to the announcement in February 1962 that the group had abandoned violence. Nevertheless, Ireland continued to suffer occasional acts of terrorism. In 1966 Prime Minister Lemass resigned. The Fianna Fáil won the ensuing elections, and John Mary Lynch became prime minister. To reduce unemployment and increase exports, he tried to build up industry in order . An increase of violence between Protestants and Catholics in Northern Ireland was followed by IRA terrorist activity in the Irish Republic. In 1971 the Dáil banned the purchase or holding of arms for use outside Ireland. In 1972 the government required the surrender of all firearms. Also in early 1972 Ireland signed a treaty joining the European Community, effective January 1, 1973,a move favored by 83 percent of the voters; and, by referendum, ended the special constitutional status of the Roman Catholic church. Shifts in Power: Hoping to strengthen his party, Lynch called elections in February 1973. A coalition of the Fine Gael and Labour parties gained a slim majority, however, and Fine Gael leader Liam Cosgrave became prime minister. Fianna Fáil returned to power in a government headed by Lynch in 1977; in 1979 Lynch was replaced by Charles Haughey (1925- ). In the late 1970s and early '80s the Irish government faced increased domestic terrorism by extremist Irish nationalists. Ireland also had a high rate of inflation and suffered some economic dislocation from membership in the European Community. Amid rising unemployment, elections were held in 1981, and the coalition government was led briefly by Garret FitzGerald (1926- ), head of Fine Gael. Inconclusive elections in February 1982 returned Haughey to power, but another election, in late 1982, brought FitzGerald back. In 1985 FitzGerald signed a pact with Great Britain giving the Irish Republic a consultive role in governing Northern Ireland. The collapse of the FitzGerald government in January 1987 led to new elections one month later. Haughey won a single-vote majority in the Dáil Éireann and became prime minister once again. FitzGerald subsequently resigned as Fine Gael leader. After inconclusive elections in June 1989, Haughey formed a new coalition government. In November 1990, Mary Robinson (1944- ), a feminist lawyer who ran with Labour and Workers' party backing, became the first woman ever to win election as president of Ireland. Haughey resigned as prime minister and leader of Fianna Fáil in early 1992, amid allegations of scandal; his former finance minister, Albert Reynolds (1932- ), was chosen to replace him. In June 1992, Irish voters ratified a treaty strengthening political and monetary integration within the European Community. Mary McAleese (1951) succeeded Ms. Robinson in 1997 as President. Born of a Catholic Belfast family, Ms. McAleese is actually not a citizen of Ireland but Great Britan,and because residents of Northern Ireland can hold office in the Republic, such was the case for the new president whose views and are nearly identical to that of Ms. Robinson.
