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The Economic Lessons for Canada from Ireland’s Success Story

May 21, 2014 0 Comment

Canada has a possibility to emulate the long term productivity augmenting practices to help encourage high employment by taking into account country-specific wage setting institutions and financial systems (Fortin, 2000). If Canada can avoid premature financial tightening and adopt guidelines that will keep labor costs low, the country will be able to sustain the lowest possible unemployment rate (Fortin, 2000). The plan is to keep labor costs low and to foster high rates of saving and investment (Fortin, 2000).

An astonishing fact of the Irish real GDP is that the growth in Irish productivity has been very fast for the whole period of 1976-2000, averaging 3.3 percent a year. This progress and sustained growth during this post-war period is very unusual with only Korea surpassing Ireland’s numbers (Fortin,2000). Irish numbers are now challenging United States productivity while exceeding Canada’s retaining an employment rate of 93 percent.

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