Social Partnership in Ireland

1
Social Partnership in Ireland

• NEWGOV Policy Learning and Experimentation,
• London, March 2006
• Rory ODonnell,
• Director, NESC
• www.nesc.ie

2
Overview

• The analytical basis of partnership
• Who initiated partnership?
• Was there learning?
• Was there an EU role?
• Interpreting the EU role?
• In search of a role in EMU?
• Employment, inclusion and OMC

3
Consistent policy framework

• 1. Macroeconomic
• Low inflation
• Growth of demand
• 2. Distributional
• Ensure competitivess
• Handle distributional conflict
• Fair
• 3. Structural adjustment/supply-side policy
• For success in changing environment

4
Policy content for Ireland

• 1. Macroeconomic policy
• EMS to EMU
• public finance correction
• 2. Distribution
• centralised wage, welfare, tax
• 3. Structural change
• training, technology, social ...

5
Within a consistent framework

• Most effective policies are supply-side
• National policies must produce flexibility
• Successful supply-side policies depend on level
  of social cohesion and co-operation

6
Dual evolution of partnership

• Content
• From macro
• to
• supply-side policies

• Method
• high-level bargaining to multi-level problem
  solving

7
Dimensions of partnership

• Bargaining and deal making.
• Solidarity, inclusiveness and participation.
• Deliberation, interaction, problem-solving and
  shared understanding

8
Who initiated social partnership?

• Economic, social, political crisis
• Analysis in NESC
• Agreed NESC Strategy report
• Negotiated 3 year programme
• 6 programmes since 1987

9
Was there learning?

• Conscious search for models of business
  development, macroeconomic policy, social
  consensus, industrial relations and social policy
• Initially part of ideological deadlock
• EU impact combined market conformity and gains
  from coordination
• Partnership associated with move to pragmatic
  learning
• Change in parts has changed the whole

10
Was there an EU role?

• EU context
• trade and CAP
• Profound EU role via
• EMS
• Internal market
• Structural Funds
• EES

11
Interpreting the EU role

• Both externally and internally from sovereignty
  to partnership
• EU altered political economy of dominant European
  models
• EU drawn to experimental policy approaches
• EU has to rely on networked problem solving
• EU a new model of internationalisation
• Distinguish cause and context

12
In search of a role in EMU?

• Limited direct role for Irish partnership
• Effective EU macro policy needed
• Greater concern with supply side
• EU reform programmes
• Networked sectors
• Services directive and labour market
• Migration

13
Employment, inclusion and OMC

• Ireland anticipated much of EES and OMC
• OMC secondary to partnership and SF
• Some direct learning Preventative Strategy
• Must look beyond employment creation and
  unemployment reduction
• Which raises deep questions
• Has partnership retained its learning and
  problem solving capacity?
• Does Ireland have a social system to match its
  economic ambitions?
• Major review of welfare state

14
Discussion