Download Ireland`s Celtic Tiger: The Social Impact of Economic Growth

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Rostow's stages of growth wikipedia, lookup

Transcript
Ireland’s Celtic Tiger:
The Social Impact of Economic
Growth
Peadar Kirby
Professor of International Politics
and Public Policy
University of Limerick
Introduction
 2007 election: people voted for ‘wealth over
health’
• draws attention to social deficits
 Main ‘puzzle’ of Irish ‘boom’
• success in growth, employment, exports
• failures in poverty, inequality, health provision
 Uncovers ambiguous nature of Ireland’s
adaptation to globalisation
• salutary lessons for other latercomers
Social impacts
 Three principal forms:
 Inequality
 Multiple and reinforcing
 State helps produce it
 Social provision
 Decline in state spending as % of GDP/GNP: outlier in
EU
 ‘Anorexic welfare state’ (Boyle, 2005)
 Social breakdown
 Violence, drugs, suicide
 Erosion of sense of belonging
Accidental or structural?
 Nature of the Irish ‘model’:
•
•
•
•
•
Based on attracting high levels of FDI
IDA as ‘hunter and gatherer’
Low corporation tax as key mechanism
Contribution of education
EU structural funds
 A low-tax model supplemented by EU social
investment
• Regressive nature of structure of taxation
• Vulnerabilities of tax base
Nature and role of the state
 An activist state
• But a fragmented one
 For long industrial policy left to IDA
• Captured by MNC interests
 In 1980s new spaces emerged for policy
innovation
• Helped by EU funding
• Innovation smothered by neo-liberal tax cutting
from mid 1990s
What kind of state?
 A developmental network state or a
competition state?
 Uneven nature of state capacity
• Success in winning FDI contrasts with relatively
weak state of indigenous industry
• Very successful macroeconomic management
contrasts with poor state of health services
• Institution of social partnership hides highly elitist
nature of policy making
• Central logic informing state actions is economic
competitiveness
International comparisons
 No attention by Irish analysts to question of
size
• Neo-classical economists regularly compare
Ireland to US!
 How does size constrain? How manoeuvre?
• Benefit of comparative studies with other small
states
• Study of Ireland and Costa Rica (Paus, 2005)
Facing the challenges ahead
 Ireland’s long-term development problems
camouflaged rather then resolved
 Economic dependence:
• Vulnerabilities of Irish model: failure to embed
success in indigenous economy
 Social inequality:
• Legacy of deepening social polarisation: failure
to foster a more egalitarian society
 Role of the state:
• Capacity developed but too fragmented: failure to
balance regime of accumulation with strong
regime of distribution
Conclusions
 Ireland is a major success case if all we
observe are growth indicators
•
•
But economic growth is not an end but a means to a better
society
This requires a strong regime of distribution, usually fostered
through an activist civil society
 Ireland has squandered much of its
opportunity for development
•
•
Now faces need to develop capacity amid cutting costs
It is a warning of the social costs of economic success in
this era of globalisation