Focus on economy in Tiger years criticised

IRELAND’S DOMINANT development model was deeply flawed because of its focus on economic growth as the key to progress while avoiding…

IRELAND’S DOMINANT development model was deeply flawed because of its focus on economic growth as the key to progress while avoiding crucial questions of values and ethics, according to Social Justice Ireland (SJI).

In a collection of essays, Beyond Gross Domestic Product: What Is Progress and How Should it be Measured?, SJI directors Fr Seán Healy and Sr Brigid Reynolds argue that failure to address important questions meant the excesses of the Celtic Tiger years were encouraged and potential social gains dissipated.

“Ireland’s people are left with a serious debt problem, a major fiscal problem, a bank system into which they are pouring billions to rescue people who took totally unjustified risks and/or acted illegally while accumulating great wealth for themselves.

“Ireland’s social services are under serious pressure, there are serious questions about getting value for money and the public sector is in need of reform.

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“Ireland’s international reputation leaves a great deal to be desired following its failure to act in a prudent manner with a focus on the common good. Most of this could have been avoided if Ireland’s development model was focused on the common good, on building a better future for the people of the country, rather than focusing, principally, on generating economic growth.”

The book is based on papers delivered at a conference in Dublin last November 17th. In the introductory chapter, Prof PJ Drudy of Trinity College Dublin writes that traditional indicators such as gross national product and gross domestic product were problematic when used as the main measure or indicator of progress.

GDP “cannot reflect the complexities involved in development because it reveals little or nothing about a range of social, cultural, environmental as well as strictly economic factors that can enhance or debilitate the quality of life.

“Higher levels of production, consumption, or investment do not necessarily indicate higher levels of development and well-being across the population.”

Prof Drudy argues that “we must turn instead to this more appropriate goal of human development by using a much more comprehensive set of variables which place emphasis on sustainability, freedoms, capabilities and empowerment within a human rights based framework.

“Indeed, we need to turn away for good from the obsession with economic growth and the philosophy of the market to focus instead on a philosophy and a set of values and ethics which facilitates and nurtures human development. To achieve this, new more appropriate national and international structures must also be put in place.”

Social Justice Ireland is the successor of Cori Justice. The book was published with assistance from AIB Investment Managers.