The Irish Ambassador to Japan since 1995, Declan O'Donovan, interviewed in a Japanese newspaper, Shigefumi Takasuka Daily Yomiuri, explained the reasons for Ireland's success over the last ten years, and commented on the higher profile Ireland now enjoys in Japan.
First, Ireland has succeeded in attracting foreign investment due to its low corporate tax rates and highly skilled labor force, according to O'Donovan.
"We decided a very long time ago to invest in education, which we have always done, but particularly in scientific, technological and engineering education," he explained.
"The Irish government decided to make high school education free in 1967. In the 1990s, it made all university education free, too."
The ambassador said about 60 percent of students in higher education specialize in science, technology or engineering, putting Ireland in a very good position when the information technology revolution came along.
"Secondly, we have a very young population," O'Donovan said. "Over 40 percent of our population is 25 or under 25. A population that young can be more flexible and can adopt new ideas more enthusiastically."
Strong government leadership also contributed much to growth of the Irish economy.
According to O'Donovan, the government succeeded in reaching an agreement called the "Social Partnership" program with the business sector and trade unions in 1990s. Under the program, the government could keep wage increases under control in return for reducing income tax rates and improving social welfare benefits.
"Obviously the fact that we are in the European Union is a major advantage for us," he also said. "We have 350 million people in the European Union market, which will increase further when the EU expands."
Being the only English-speaking nation among the countries that have adopted the euro is another great advantage for Ireland.
"It is easy for American companies to locate in Ireland," he said. "It is also easy for Japanese companies. Very often, I ask Japanese companies why they are interested in (investing in) Ireland and they mention English."
However, the rapid economic growth of Ireland has had a negative effect--a high inflation rate. Ireland's inflation rate last year exceeded 5 percent, the highest among EU member countries, whose average was 2.3 percent.
In February, the European Commission advised the Irish government to revise the country's fiscal 2001 budget, which contained large-scale tax reductions, because of concerns that it might overheat the economy. However, the Irish government declined to make major budget revisions.
"In our view, the reasons for inflation exceeding 5 percent were due mainly to external factors such as the weaker euro and high oil prices at that time," O'Donovan said.
Apart from the economy, the nation's fashion, culture, music and movies also seem to be attracting more and more attention from the Japanese public, he said.
One such example is a parade held March 17 on Omotesando avenue in Shibuya Ward, Tokyo, to celebrate St. Patrick's Day, the Irish national day. Many Japanese participated in the parade led by Irish Deputy Prime Minister Mary Harney, who was visiting Japan at the time.
About 1,400 people joined the parade, including not only Irish and Japanese but also Americans and people of other nationalities, while another 5,000 people packed the street to watch. It was the biggest and most successful St. Patrick's Day parade in Japan since it started 10 years ago, the ambassador said.
"Some of the Japanese participants belong to Irish culture and music groups. Participants come from schools, colleges and all walks of life. Among them, we even have breeders of Irish setters or wolfhounds, who brought them to the parade," the ambassador said. "For others, it is just a colorful occasion. The Irish always wants to celebrate it with friends. So, it is always a party for everyone. We hope to keep it going (in Japan)."
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