ireland, the changing role of the national economic & social council - rory o'donnell
TRANSCRIPT
Ireland The Changing Role of the
National Economic & Social Council
Rory O’Donnell
www.nesc.ie
National Economic
Social Council NESCNESC
Late development
Industrial strategy
Social Partnership
Ireland is interesting because
Late development
Industrial strategy
Social Partnership
Ireland is interesting because
19thC de-industrialization & population collapse
Protection, 1922-1960, failed because of small, poor, peripheral, home market
Remarkable convergence 1987-2008
Late development
Industrial strategy
Social Partnership
Ireland is interesting because
Since 1960, industrial development with activist public agencies
focus on:•exports•inward investment•European integration•S&T and innovation
‘Networked Developmental State’
Late development
Industrial strategy
Social Partnership
Ireland is interesting becauseInherited sterling & UK industrial relations
From 1987 to 2008 used social partnership institutions & agreements to manage key macro, wage & supply-side issues
Crisis since 2008: unilateral government action & collapse of national partnership
NESCNESC
1. The role of an ESC reflects the national development challenges & is often shaped by crises in strategy & politics
2. The institutional design and organisation of the ESC matters
3. Traditional forms or 'representation' & 'participation', such as ESCs, face challenges
Three main propositions
NESCNESC
•Established 1973, without statutory basis
•Initial membership: employers, trade unions, farm organisations, academic experts & 5 govt departments (including Finance)
•Chaired by Secretary General of PM’s office
•Meets monthly, in plenary not working groups
•Serviced by small Secretariat (economists and social policy analysts – PhD & masters-level)
Basic description of NESC
NESCNESC
•Seeks consensus on analytical reports prepared by Secretariat or consultants, no voting
•Not involved in legislation or mediation
•Focus mostly on strategic issues and principles
•Widened to social NGOs in mid-1990s
•Widened to include environmental NGOs in 2011
Basic description of NESC continued
NESCNESC
1. Composition: employers & trade unions OR inclusion of social NGOs & others
2. Relationship to government: independent of government or close to government system
3. Focus and conduct of work: medium-term issues & principles OR immediate, concrete, issues; plenary OR working groups
4. Nature & goal of discussion: talk OR consultation with each other & government OR dialogue with goal of agreement or consensus
ESCs differ on several dimensions
NESCNESC
1. Composition: widened to include agriculture organisations, social NGOs & environmental NGOS
2. Relationship to government: close to government system because chaired by PMs department
3. Focus and conduct of work: traditionally medium-term issues & principles, not hard business of social partners with government
4. Nature & goal of discussion: evolved from consultation to search for agreed analysis & basis for agreements with government, and recently back to consultation
Ireland's NESC on these dimensions
Characterising Councils & Dialogue
Dialogue& consensus
Dialogue
Consultation
Talk
Govt&business
Govt, business,unions, ag. groups & academia
Govt., business,unions, agriculture, academia & social NGOs
Govt., business,unions, agriculture social NGOs, academia & environment
Characterising Councils & Dialogue
Dialogue& consensus
Ireland1986-96
Ireland1996-2008
DialogueIreland 1973-86
ConsultationIreland1963-73
Ireland2009-11
Ireland2011-13
Talk
Govt,business& unions
Govt, business,unions, agriculture & academia
Added social NGOs
Added environmental pillar
NESCNESC
1. 1973 to 1985:Prepare analysis of specific policy issues &
advise government
2. 1986-2008:Prepare agreed analysis to underpin three-
yearly social partnership agreements
3. 2009-2013:Prepare studies to assist government in crisis
management & explore basis for consensus
Three phases in the role of NESC
From initial growth to crisis
• Opening & activist policy started growth 1960s• Through FDI, trade, public investment, EU
but • Indigenous industry lost in free trade• Social need & expectations rose• Sterling context meant inflation/instability• Industrial relations conflict 1970s-80s• US Foreign Direct Investment fell in 1980s • Crisis prompted discussion in NESC 1986
Orthodox economic view 1979-86: fiscal and wage indiscipline undermined business
success
Decline of inward investment and
failure of indigenous business
Excessive spending, public borrowing and wage growth
NESC analysis yielded wider view 1980-86: problems of stabilization, distribution and
development are connected
Business damaged by fiscal and
labour problemsAlso reflect developmental challenge of a
regional economy
Fiscal crisis has a developmental
elementMacro pressures & debates also crowd
out supply-side issues
•Social Partnership System 1987 to
2008• A three-yearly NESC Strategy report on
economic and social situation & challenges
• Negotiations then conducted in PM's department
• Written 3 year partnership programme
• Mechanisms for monitoring & review – in PM's department, not NESC
• 8 Partnership programmes 1987 to 2008
• Remarkable economic & social progress
NESCNESC
1. articulated a shared understanding of key economic and social mechanisms
2. aligned partners to consistent and competitive actions: macroeconomic, distributional & supply-side.
3. provided framework for strategic government policy.
Role of negotiated partnership programmes 1987-2008
NESCNESC
•Joint observation of evidence, both pleasant and unpleasant
•Analysis that reframes a problem in a way that allows actors to see new possibilities for agreement and action
•Allowing a combination of bargaining, solidarity & deliberation
NESC's role & method in partnership period 1987-2008
NESCNESC
1. 1986: basis for agreement on fiscal correction & development
2. 1989: European integration3. 1990: analytical foundations for a
partnership approach to macroeconomic, distributional & structural policy
4. 1996: enterprise-level partnership5. 2005: The Developmental Welfare State6. 2006: immigration & labour standards
Examples of NESC's reframing analysis
Networked Developmental State & Developmental Welfare State
NDSThe long-term strength of the economy now depends on industrial &
effective social policy
DWSSocial policies must
share responsibility for economic
performance and participation
2000-2007: growth, politics & partnership yielded
• Opportunist tax cuts & pro-cyclical fiscal policy • Pressure for housing supply• Insufficient public sector reform: training,
education, health, childcare, welfare, housing, social services & transport
• Bargaining focus on labour standards• Wage growth ahead of EU rates• Unresolved issues glossed over by revenue &
spending increases
Segmentation in Ireland's Social Pacts
NESCNESC
1. To achieve deliberation & reports/advice that go beyond the lowest-common denominator & facilitate problem solving
2. To pitch the work at the right level: between high-level strategy/principles & the hard business that social partners do with government
3. To maintain relevance in the face of both 'new governance' and 'permanent austerity'
Three basic challenges for ESCs
NESCNESC
'New governance'• Governments engage stakeholders directly• Policy thinking closer to policy implementation• Economic, social & environmental issues
interact, needing inter-disciplinary analysis • Policy cause & effect more uncertain
'Permanent austerity'• Unilateral government action & Troika direction• More zero-sum & less win-win possibilities• Social partners focus on bi-lateral relation with
government • International instability & uncertainty
Challenge of maintaining ESC relevance
NESCNESC
1. O'Donnell, R., Damian Thomas and Maura Adshead (2011) 'Ireland: Two trajectories of Institutionalisation' in Avdagic, S. Martin Rhodes & Jelle Visser eds. Social Pacts in Europe: Emergence, Evolution and Institutionalisation, Oxford University Press,
2. Devlin, Robert & Graciela Moguillansky (2010) Alanzias Public-Privadas Para Una Vision Estrategica Desarrollo, Santiago: CEPAL & SEGIB
References