Economic Growth in Ireland from Social Partnerships

Social partnerships have been in existence from as early as the 1980s but have been mostly implemented when financial trouble arises. Research shows that social partnership came about in Ireland when they were in an economic predicament. This can be clearly demonstrated when Eileen Connolly (2007) states that:

For nearly 20 years the Irish State has engaged in a process if social concentration that has produced tri-annual agreements between the social partners and the government. Beginning in 1987 as a response to economic crisis, Irish ‘social partnership’ has received international attention because it has been closely associated with the spectacular success of the Irish economy. The economic success of Ireland’s development model, had, by the end of the 1990s, produced virtually full employment and budget surpluses. (p.3).

Ireland was able to transform from one of the poorest countries in Europe to one of the richest in fifteen (15) years. The country’s economic transformation was done in the time of the institutionalization of social partnership which was done through three-year collective agreements (Baccaro & Simoni, p.1). The economic success of Ireland can be attributed to implementation of social partnerships which laid the foundation for economic growth.

Connolly (2007) also noted that Social partnership has immensely impacted on the success of Ireland’s achievement by creating a “stable context for economic growth; it builds consensus for difficult policy decisions avoiding social and industrial strife; and it provided a predicable policy environment for business and FDI.” Ireland was able to capitalize on the other various aspects that fostered and encouraged growth including “the availability of EU funds; increasi...

... middle of paper ...

...r, technology and process) and introducing concepts of performance based compensation both in the public and private sector. The success of such a regime will then lead to increased competitiveness and sustained economic growth. (p.43)

“The current Government of Barbados which governs the Public Sector acknowledges that, at the advent the social partnership, it played a significant role to refocus and re-invigorate the Barbados economy.” (Springer, 2010, p., 42).

“The private sector organizations agree that the Social Compact played an important role in the initial stages of its establishment” (Springer, 2010, p. 42)

In both the private and public sectors in Barbados there were many opportunities for investments in the which resulted in the creation of many jobs for the people in the country and was a way for raining capital to further fund these endeavours.