Social Policy and Macroeconomics : The Irish Experience

The remarkable performance of the Irish economy in recent years has attracted much attention. Within a 10-year period the economy went from an 18 percent unemployment rate to nearly full employment, while the ratio of debt to GDP fell from 120 perc...

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Bibliographic Details
Main Author:	McCarthy, F. Desmond
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	SOCIAL POLICY MACROECONOMICS ECONOMIC ANALYSIS FOREIGN DIRECT INVESTMENTS TRADE LIBERALIZATION UNEMPLOYMENT LEVELS CUSTOMS UNIONS FREE TRADE EUROPEAN UNION FINANCIAL FLOWS SOCIAL PARTICIPATION FISCAL POLICY EXCHANGE RATES LABOR POLICY SOCIAL WELFARE HEALTH EXPENDITURES EDUCATIONAL FINANCING ACCOUNTABILITY AGRICULTURAL EMPLOYMENT AGRICULTURE ANNUAL GROWTH RATE AUTHORITY BROAD CONSENSUS BUDGET DEFICIT CENTRAL BANK CITIZENS CITIZENSHIP CLIMATE COMPETITIVE ADVANTAGE COMPETITIVENESS CONSUMERS DEBT DEVELOPING COUNTRIES DEVELOPMENT PROCESS DIRECT IMPACT DOMESTIC COMPANIES ECONOMIC CONDITIONS ECONOMIC DATA ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SITUATION ECONOMIC SURVEYS ECONOMISTS EMIGRATION ETHICS EXCHANGE RATE EXPENDITURES EXPORTS EXTERNAL DEBT EXTERNALITIES FISCAL FISCAL CRISIS FISCAL DEFICIT FISCAL SITUATION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FULL EMPLOYMENT GDP GNP GOVERNMENT DEPARTMENTS GOVERNMENT POLICY GROWTH RATE HEALTH CARE HEALTH INSURANCE HOSPITALS HOUSING HUMAN RESOURCES IMMIGRATION INCOME INCOME MEASURES INDUSTRIALIZATION INFLATION INSTITUTIONAL FRAMEWORK INSURANCE INTEREST RATES INTERNATIONAL MARKET INTERVENTION LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LEVELS OF GOVERNMENT LIVING STANDARDS LOCAL GOVERNMENTS LONG TERM LONG-TERM UNEMPLOYMENT MEMBER STATES MONETARY POLICY MONOPOLIES MOTHERS OIL OPPORTUNITY COST OVERVALUATION PARTNERSHIP POLICY CHANGE POLICY INITIATIVES POLICY MAKERS POLICY RESEARCH POLITICAL PARTIES POVERTY ALLEVIATION POVERTY LEVELS POVERTY LINE POVERTY LINES PRIMARY SCHOOL PRIORITY AREAS PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC FINANCES PUBLIC FUNDS PUBLIC SECTOR PUBLIC SPENDING PURCHASING POWER REAL TERMS RELATIVE POVERTY REPRESENTATIVES RETIREMENT SERVICE SECTOR SOCIAL ASSISTANCE SOCIAL EXCLUSION SOCIAL EXPENDITURES SOCIAL INCLUSION SOCIAL INFRASTRUCTURE SOCIAL INSURANCE SOCIAL PACT SOCIAL PROTECTION SOCIAL SECURITY SOVEREIGNTY STATISTICS OFFICE STRUCTURAL CHANGE STRUCTURAL REFORM SURPLUS LABOR TAX CUTS TAX RATE TAX RATES TAX REGIME TAXATION TOTAL REVENUE TRANSPORT INFRASTRUCTURE UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE WALKING WELFARE SYSTEM WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2001/12/1660274/social-policy-macroeconomics-irish-experience http://hdl.handle.net/10986/19417

Description
Summary:	The remarkable performance of the Irish economy in recent years has attracted much attention. Within a 10-year period the economy went from an 18 percent unemployment rate to nearly full employment, while the ratio of debt to GDP fell from 120 percent to less than 50 percent. Inevitably, this success was also accompanied by problems, as infrastructure came under increasing stress, environmental difficulties became more evident, and a changing social structure resulted in some groups becoming increasingly marginalized. What worked and what did not? In particular, are there lessons that may be relevant for other countries facing similar difficulties, especially in Asia and Latin America? McCarthy focuses on three features of Ireland's economic achievements. Two of these features are external: the opening to Europe and the role of foreign direct investment. The third and perhaps most "exportable" feature is domestic: the role of a social pact. This pact was initially between employers, trade unions, and the government. Subsequent pacts were extended to include a variety of other groups. McCarthy discusses the far-reaching impact of this series of pacts on health, poverty, employment, education, and social welfare. Ireland now faces a number of challenges, including the slowdown in the global economy, a fall in resource transfers from the European Union, and the potential effects of the entry into the EU of Hungary and Poland.

Social Policy and Macroeconomics : The Irish Experience

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