section_path: History/Partition/Independence
section_name: Independence
paragraph_text: Independence
  
  During its first decade, the newly formed Irish Free State was governed by the victors of the civil war. When de Valera achieved power, he took advantage of the Statute of Westminster and political circumstances to build upon inroads to greater sovereignty made by the previous government. The oath was abolished and in 1937 a new constitution was adopted. This completed a process of gradual separation from the British Empire that governments had pursued since independence. However, it was not until 1949 that the state was declared, officially, to be the Republic of Ireland.
  
  The state was neutral during World War II, but offered clandestine assistance to the Allies, particularly in the potential defence of Northern Ireland. Despite their country's neutrality, approximately 50,000 volunteers from independent Ireland joined the British forces during the war, four being awarded Victoria Crosses.
  
  The German intelligence was also active in Ireland. Its operations ended in September 1941 when police made arrests based on surveillance carried out on the key diplomatic legations in Dublin. To the authorities, counterintelligence was a fundamental line of defence. With a regular army of only slightly over seven thousand men at the start of the war, and with limited supplies of modern weapons, the state would have had great difficulty in defending itself from invasion from either side in the conflict.
  
  Large-scale emigration marked most of the post-WWII period (particularly during the 1950s and 1980s), but beginning in 1987 the economy improved, and the 1990s saw the beginning of substantial economic growth. This period of growth became known as the Celtic Tiger. The Republic's real GDP grew by an average of 9.6% per annum between 1995 and 1999, in which year the Republic joined the euro. In 2000, it was the sixth-richest country in the world in terms of GDP per capita. Historian R. F. Foster argues the cause was a combination of a new sense of initiative and the entry of American corporations. He concludes the chief factors were low taxation, pro-business regulatory policies, and a young, tech-savvy workforce. For many multinationals, the decision to do business in Ireland was made easier still by generous incentives from the Industrial Development Authority. In addition European Union membership was helpful, giving the country lucrative access to markets that it had previously reached only through the United Kingdom, and pumping huge subsidies and investment capital into the Irish economy.
  
  Modernisation brought secularisation in its wake. The traditionally high levels of religiosity have sharply declined. Foster points to three factors: First, Irish feminism, largely imported from America with liberal stances on contraception, abortion and divorce, undermined the authority of bishops and priests. Second, the mishandling of the paedophile scandals humiliated the Church, whose bishops seemed less concerned with the victims and more concerned with covering up for errant priests. Third, prosperity brought hedonism and materialism that undercut the ideals of saintly poverty.
  
  The post-2008 Irish economic downturn dramatically ended this period of boom. GDP fell by 3% in 2008 and by 7.1% in 2009, the worst year since records began (although earnings by foreign-owned businesses continued to grow). The state has since experienced deep recession, with unemployment, which doubled during 2009, remaining above 14% in 2012.