Essay Plan

INTRO:

• Irish Free State not economically independent, relied on Britain.
• Cumann na nGaedheal inherited debt and economic ruin.
• Conservative policy, Free trade, Priority for agriculture, No industry, Restructuring national debt, Lower taxes.
• Fianna Fáil Nationalistic: Government involvement, Development of industry, Protectionism, Economic links with Britain broken, Self-sufficiency, Economic warfare.

BODY PARAGRAPHS:

1. Economic Policy
2. Agricultural (Cnag)
3. Ultimate Financial Agreement (Cnag) + Tariff Protection
4. Industry (Cnag) Shannon Scheme
5. Great Depression (Cnag)
6. Free Trade to Protectionism + Economic War (FF)
7. Economic Impact (FF)
8. Agricultural + Industrial + Social Policy (FF)
9. Censorship + rationing + neutrality
10. Southern wartime economy impact of WWII

CONCLUSION:

• Fianna Fáil protectionism vs Cnag free trade
• Economic crisis + Emergency (World War II) effects
• Lemass + Whitaker foreign investment, international trade "New Programme for Economic Expansion" (1960s)
• Assertion of sovereignty, eventual EU membership.

Sample Essay

The Cumann na nGaedheal and Fianna Fáil governments dealt with Ireland's socio-economic issues to varying degrees of success between 1923 and 1945. The Irish Free State was not economically independent from Britain and relied on its market, as England was the leading consumer of Irish exports. Cumann na nGaedheal inherited an economically ruined country after the Civil War and followed a conservative, free-trade policy. Fianna Fáil took over with a more nationalist approach, employing a policy of protectionism with a heavy emphasis on self-sufficiency. These differing governmental approaches significantly impacted Irish society and the economy.

When Cumann na nGaedheal entered Government, they laid out their economic policy. The Currency Act of 1927 valued the Irish Punt the same as the British Pound. Taxes were reduced to encourage investment, so there was little capital left for government expenditure—partition led to the loss of industry in the north, a massive blow to the Irish economy. The Free State had little to no industrial work, so the Government remained dependent on agriculture for economic activity.

Agriculture and farming were the priorities of economic policy instead of industrial development, and Patrick Hogan, the Minister of Agriculture, made this priority clear. Legislation like the Livestock Breeding Act of 1925 and the Agricultural Produce Act of 1930 improved the produce standard, and the new Land Commission provided financial assistance to farmers. Demand for food fell after World War I; the only thriving area seemed to be livestock farming. Ireland's economy depended on an unstable industry, which led Cumann na nGaedheal to pass further legislation.

A series of meetings took place in 1926. Britain dropped certain financial claims against the Irish, such as the Civil War weapons debt, which amounted to £7 million. Ireland still paid land annuities and RIC pensions, which cost the Free State £5 million per year. The Ultimate Financial Agreement of 1926 was not agreeable with Cumann na nGaedheal and was later fully rejected by Fianna Fáil. Trade relations between Britain and Ireland had a major effect on government running and daily life.

An important decision had to be made regarding the industry policy of protectionism. Pádraig Mac Loughlainn's cabinet was divided over free trade versus the protection of Irish goods, tariffs on imports, and expensive competitors. Protected industries, like shoes and soap, were decided by the 1923 Fiscal Inquiry Committee. Ultimately, free trade won out, and non-protectionism was implemented. Tariffs were only granted to those who asked for protection. By 1931, 61 companies were covered by the Tariff Commission. Cumann na nGaedheal believed free trade would benefit the Irish economy.

In 1922, the Irish industry suffered many problems, such as a lack of raw materials, economic depression due to increased competition, lack of tariff protection, and a lack of skilled labour. Efforts were made to improve training through legislation like the 1930 Vocational Education Act. The Shannon Scheme was also established to reduce coal imports, and from 1927, the ESB distributed electricity across the national grid. Electricity was a major success and was present in every town by 1939. Mergers of foreign and state investment occurred, and more semi-state bodies were established to promote economic prosperity and improve the standard of living.

The 1929 Wall Street Crash led to a global economic downturn, but it had a negligible impact on the Free State, as its industry was directed to the domestic market. However, the downturn led to a fall in exports after 1930, and more tariffs were placed on them, which hurt Irish businesses. Northern Ireland suffered from the downturn of industries such as shipbuilding and textiles; unemployment grew exponentially. When de Valera took over, Fianna Fáil worsened the economic war with Britain. Cumann na nGaedheal did not prioritise social policy, leading to low public expenditure and a lack of social welfare, lowering living standards.

Fianna Fáil was elected to Government in 1932, and de Valera promised to end the land annuity payments that Cosgrave had been paying. The party aimed to assert economic independence from Britain. De Valera withheld £1.5 million worth of payments, but the British increased taxes on Irish imports, which made up for the loss. The 1932 Emergency Imposition of Duties Act, which put customs on British imports, fuelled the economic war until the Anglo-Irish Agreement in 1938 settled financial and defence issues by lifting tariffs and returning Treaty Ports.

The economic war had a massive impact on the volume of agricultural exports, which halved and led to tariffs. Fianna Fáil strived for agricultural self-sufficiency, and farmers were given grants to produce wheat and sugar at a guaranteed minimum price. Many lives were affected as farm labourers lost their jobs, and overall living standards and wages fell. Britain's primary export market was the Free State, so de Valera believed Anglo-Irish relations were vital for economic recovery. This led to the Coal and Cattle Pact of 1935, which aided in the coal trade from Britain and cattle from Ireland. The economic war and how it was handled affected Ireland socially and economically.

Fianna Fáil believed that economic prosperity was heavily reliant on agriculture. Dr James Ryan, the Minister for Agriculture, emphasised that most family farms produced livestock, not tillage. Policies were implemented to encourage tillage farming, as it would promote self-sufficiency and provide employment. High prices for produce were offered, farmers were given subsidies and incentives, and maize imports were eliminated. Semi-state organisations like the Irish Sugar Company were established, and legislation like the Alcohol Act of 1934 promoted tillage growth, improving Ireland's socio-economic conditions.

Fianna Fáil's industrial strategy strived for self-sufficiency. Minister Seán Lemass created initiatives to reduce unemployment. Loans were given to Irish nationals to encourage new companies, boosting the industry. The Government established semi-state bodies such as Bord na Móna and Aer Lingus, and in 1933, the Industrial Credit Corporation was created to provide long-term capital. However, the Irish industry faced challenges overall as it had no international market, which was essential for growth. Fianna Fáil's social policy included unemployment benefits, healthcare, and housing, which led to jobs in the building industry.

The two significant economic policies differed massively, with Fianna Fáil being protectionist and Cumann na nGaedheal promoting free trade. Fianna Fáil led the country through the Emergency and the World Economic Crisis, which had major implications for politics and society. Lemass and T.K. Whitaker introduced the "New Programme for Economic Expansion" in the 1960s, which boosted foreign trade, helping Ireland become more socially and economically independent and establish itself as the fully sovereign EU state it still is today.