Two Neighbouring States: Northern Ireland and the Republic of Ireland - Essay Example

The economy of Ireland has transformed in recent years from agrarian to technology-based service industries. Moreover, the trade and investments in the country have made it one of the wealthiest countries in the European Union. Similarly, the economic growth of this country of the period from1995 to 2000 has brought them the name ‘Celtic Tigers’. On the other hand, the economy of Northern Ireland is the smallest in the subordinate states of U K. However, just like the Republic of Ireland, Northern Ireland also attracts many by its green surroundings and so tourism contributes heavily to the economy of the nation.

Northern Ireland is a very deep-rooted industrialized country and one can notice that industrialization flourished here even before it took its root at the Republic of Ireland. The nation had such industries as shipbuilding, textiles, and rope manufacturing. However, recently many heavy industries were replaced by services as in the case of The Republic of Ireland. But it is amazing that Northern Ireland has greater GDP than that of the neighboring states like East England and Wales. Tourism plays a vital role in bringing up the economy of Northern Ireland.

Around 70% of economic output and covering 78% of employees fall in the service industry. It is also worthwhile to consider how the recent economic recession has adversely affected the economy of both states. While there was a considerable increase in the rate of unemployment in Ireland, the economic recession caused great damage to the property market, such as construction, building products, and conveyance in Northern Ireland. With regard to currency, Euro is in use in the Republic of Ireland whereas British Pound Sterling is used in Northern Ireland.

To conclude, the major difference between the Republic of Ireland and Northern Ireland occurs in their political scenario. Northern Ireland has been a land dispute ever since the invasion of the Normans. The Republic of Ireland is an independent nation whereas in Northern Ireland the political unrest among Loyalists, who support Britain, and Nationalists, who support the Republic of Ireland put the economy into various troubles. However, in spite of these internal struggles, Northern Ireland has acquired economic stability and financial prosperity through a wide range of modernized services.

Even though, the recession has adversely affected the economic growth of both the nations, the economic growth of Northern Ireland was put down to a substantially lower level to The Republic of Ireland. To conclude, one can predict that the Republic of Ireland would become one of the powerful economic giants in the European Union whereas tourism and the service sector would be deciding the future economic destiny of Northern Ireland.