The establishment of the Irish Free State gave rise to the first serious attempt since the 1890s to industrialise the south of Ireland, but always with scant resources. Farming became orientated around pasture rather than tillage, with the increased processing of products and the export business. The country was gradually electrified and new state-owned factories were encouraged, such as the Irish Sugar Company in Carlow.
Frank Barry and Mary F. Daly have argued that :
Ireland was a largely agrarian economy, trading almost exclusively with the UK, at the time of the Great Depression. Beef and dairy products comprised the bulk of exports, and Ireland fared well relative to many other commodity producers, particularly in the early years of the depression.[7][8][9][10]
During the late 1930s the Fianna Fáil government began a disastrous dispute with Britain over the payment of land annuities, called The Economic War. The Irish state refused to continue paying land annuities, Britain put tariffs on Irish beef, and the Free State retaliated by imposing tariffs on British consumer goods; this "economic war" was resolved in 1938.
From 1932 Éamon de Valera abandoned free trade, pursued a protectionist policy and sought self-sufficiency, but the country was not wealthy enough to make this a success. This led to the state taking control of private interests in the name of the public interest - nationalisation and monopoly creation similar to that in vogue at the time in many countries. Many of the industries which were brought under government control at the time remain under 'semi-state' control today - others were sold in the 1980s and 1990s whilst others simply were downsized or closed when the economic reality became apparent.
The establishment of the Irish Free State gave rise to the first serious attempt since the 1890s to industrialise the south of Ireland, but always with scant resources. Farming became orientated around pasture rather than tillage, with the increased processing of products and the export business. The country was gradually electrified and new state-owned factories were encouraged, such as the Irish Sugar Company in Carlow.Frank Barry and Mary F. Daly have argued that :Ireland was a largely agrarian economy, trading almost exclusively with the UK, at the time of the Great Depression. Beef and dairy products comprised the bulk of exports, and Ireland fared well relative to many other commodity producers, particularly in the early years of the depression.[7][8][9][10]During the late 1930s the Fianna Fáil government began a disastrous dispute with Britain over the payment of land annuities, called The Economic War. The Irish state refused to continue paying land annuities, Britain put tariffs on Irish beef, and the Free State retaliated by imposing tariffs on British consumer goods; this "economic war" was resolved in 1938.From 1932 Éamon de Valera abandoned free trade, pursued a protectionist policy and sought self-sufficiency, but the country was not wealthy enough to make this a success. This led to the state taking control of private interests in the name of the public interest - nationalisation and monopoly creation similar to that in vogue at the time in many countries. Many of the industries which were brought under government control at the time remain under 'semi-state' control today - others were sold in the 1980s and 1990s whilst others simply were downsized or closed when the economic reality became apparent.
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