Ireland, once deemed the "Economic Superstar of Europe" is the latest country in need of a international bailout. This bailout is surprising since Ireland had recently been considered a world economic leader as late as 2007. Similar to the US, Ireland's economy was spurred on by real estate and development growth. This growth turned out to be unsustainable and now the "loose" lending practices are coming under further scrutiny by the governement.
The other economic factor that led to Ireland's demise is that of "Supply Side Economics". The basic principle of supply side economics is that by removing, decreasing, or controlling barriers such as taxes, regulations, and monetary policy, increases incentives for individuals and businesses. When those individuals and businesses have an incentive for business, benefits will trickle back down to the people and the government. Case in point, some large American corporations went to Ireland due to their relatively lower corporate tax rate of 12.5%.
Ireland's tax cuts and tax rates were very attractive in the short run and benefited the country for many years in many different ways. Now the country is experiencing budget deficits and debt issues that it doesn't look like it will be able to recover from. I believe supply side economics can be a very wise strategy for stagnant or flat growth economies in the short run. If used as a long-term solution, the country will have to deal with debt and deficits that will surely come.