Policy coherence for development is achieved when policies across a range of domestic policy areas support, or at the very least do not undermine, the attainment of overseas development objectives. This article introduces the topic of policy coherence and analyses the coherence of Ireland’s policy on inward and outward foreign direct investment with Ireland’s overseas development objectives. We recommend that Ireland consider a pilot tax sparing arrangement with Irish Aid partner countries, take further steps to facilitate outward investment in developing countries and significantly improve the legislation governing the behaviour of Irish citizens in the area of bribery and corruption.

In relation to Ireland’s low rate of corporation tax, we find that Ireland does not compete with Irish Aid partner countries for international investment. Nevertheless, we recommend that within the context of any future renegotiation of EU corporation tax policies, Ireland should work to ensure that the position of developing countries is taken into consideration