The roots of many problems facing Ireland's economy today can be traced to the first two decades following its independence. Opening previously unexplored areas of Irish history, this is the first comprehensive study of industrial development and attitudes coward industrialization during a pivotal period, from the founding of the Irish Free State to the Anglo-Irish Trade Treaty. As one of the first postcolonial states of the 20th century, Ireland experienced strong tensions between the independence movement and the considerable institutional and economic inertia from the past. Daly explores these tensions and how Irish nationalism, Catholicism, and British political traditions influenced economic development. She thus sheds light on the evolution of economic and social attitudes in the newly independent state. Drawing on a wide array of primary sources not yet generally accessible, Daly examines such topics as Irish economic thinking before independence; the conservative policies of W. T. Cosgrave's government in the first five years after independence; the growing division between the two major political parties over economic policy; Fianna Fail's controversial attempts to develop an independent - and nationalistic - economic policy; the largely unsuccessful attempt to develop native industries; the development of financial institutions; the political and social implications of economic change; the Anglo-Irish Trade Agreement of 1938; and comparisons with other economically emerging nations.