Until the mid 1980's. Ireland did not have enough competitive products it could sell and was rapidly going backwards. Its most talented graduates were leaving the country in droves. The government, togethrr with trade ubions, business, primary producers and others got together and cut corporate tax in order to attract business. In addition they made university education practically free, encouraging the development of a highly educated workforce.

Today, 90% of the world's top pharmaceuticals companies have operations in Ireland, as do 80% of the leading medical device companies and 70% of the software designers. Last year Ireland received more foreign direct investment from the US than China did.

Ireland created a tax incentive for knowledge-based industries to be located in there. This created a demand for educated people. By providing free education, they met this supply issue.

Australia appears to be heading in the opposite direction.

From an article in BRW, August 4-10, 2005 by Gerry van Wyngen.