Gloom about social cost of boom not justified - ESRI

The economic boom of the past decade has transformed Ireland and delivered far more social gains than losses, major new research…

The economic boom of the past decade has transformed Ireland and delivered far more social gains than losses, major new research by the Economic and Social Research Institute has concluded, Carl O'Brien, Social Affairs Correspondent, reports.

•It says the "gloomy view" of the social consequences of prosperity - such as greater social inequality, looser community ties and a rise in materialism - is not supported by evidence.

Instead, it says the social impact of economic progress has been broadly positive, resulting in a decline in poverty rates, increased social mobility and improvements in the health of the nation.

Growth in real incomes and living standards have been dramatic, with even those at the bottom of the income ladder better off than they used to be, the report finds.

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It also points to a high level of satisfaction and social integration in suburban neighbourhoods, in contrast to negative depictions of the suburbs as soulless and lacking amenities.

The research is contained in a book, Best Of Times? The Social Impact of the Celtic Tiger, which brings together the work of social researchers from the ESRI, as well as NUI Maynooth and UCD.

Overall, it acknowledges that significant social problems persist, with social exclusion still too common and significant failings in our transport system and public services.

However, it concludes that these negatives are easily outweighed by positives such as the abundance of jobs and the decline in unemployment.

The editors of the book, Prof Tony Fahey, Dr Helen Russell and Prof Christopher T. Whelan, suggest the pessimistic view regarding the social consequences of the economic boom may be due to anecdotes and exaggeration substituting for hard facts.

"It is not true that the rich are getting richer and the poor are getting poorer," they said. "It is more accurate to say that the gap between the top and bottom of the social ladder has failed to narrow. It helps that the entire ladder has been raised onto higher ground."

At the launch of the book yesterday evening, Taoiseach Bertie Ahern said the partnership process had played a key role in helping to achieve these positive results.

"All sectors of society have benefited from consistent and balanced policies which seek to manage change through consensus rather than confrontation. Not only have we built a successful economy, but there has been a widely-shared social dividend," he said.

Among they key conclusions contained in Best Of Times? The Social Impact of the Celtic Tiger are that:

• Social mobility has increased as more people from modest backgrounds ascend into white-collar occupations.

• Poverty and deprivation rates have declined, although income inequality remains wide.

• The stresses of too much work and of juggling job and family life are less socially damaging than the stresses of too little work.

• Social support networks and attachments to communities remain strong. The image of masses of people lost and isolated in anonymous housing estates is belied by how settled and at home people feel in the new suburbs.

• People are marrying and having children at a higher rate than 15 years ago.

• National morale is among the highest in Europe.

The research cautions, however, that challenges remain in the future. It notes that poorer social integration and multiculturalism may yet give rise to social strains.

The Taoiseach also said yesterday that social problems which have emerged more recently may be byproducts of our economic success.

He said key challenges faced the social partners in providing affordable housing solutions, helping people combine work and caring duties, and ensuring newcomers can integrate fully.