Social Partnership in Ireland

1. National Economic Social Council NESC Social Partnership in Ireland NEWGOV Policy Learning and Experimentation, London, March 2006 Rory O’Donnell, Director, NESC www.nesc.ie

2. NESC 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. NESC 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. NESC 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. NESC 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. Content From macro to supply-side policies Method high-level bargaining to multi-level problem solving Dual evolution of partnership

7. NESC Dimensions of partnership • Bargaining and deal making. • Solidarity, inclusiveness and participation. • Deliberation, interaction, problem-solving and shared understanding

8. NESC Who initiated social partnership? • Economic, social, political crisis • Analysis in NESC • Agreed NESC Strategy report • Negotiated 3 year programme • 6 programmes since 1987

9. NESC 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? NESC • EU context: • trade and CAP • Profound EU role via: • EMS • Internal market • Structural Funds • EES

11. NESC 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 ofinternationalisation • Distinguish ‘cause’ and ‘context’

12. NESC 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. NESC 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. NESC Discussion