The national agreement should ensure that all the fruits of our economic growth are distributed fairly

Comment on the new national agreement understandably tends to focus on the allocations for pay increases, tax cuts, social inclusion…

Comment on the new national agreement understandably tends to focus on the allocations for pay increases, tax cuts, social inclusion packages and the like. These are central to any agreement of this kind. However, it is important to note some deeper issues and policy developments, contained in the agreement.

Among these I identify: strengthening the democratic process; the development of a rights-based approach; the issue of fair shares; and the challenge of sustainability.

Strengthening the democratic process

The new national agreement, Programme for Prosperity and Fairness, marks a major step forward in the development of governance and the strengthening of the democratic process. In developing this programme, a problem-solving approach has been followed by the social partners.

READ MORE

Solutions were sought to many of the major problems facing Irish society. These problems range from concern about maintaining the positive aspects of Ireland's economic growth to questions concerning how best to ensure that the fruits of this economic growth are distributed fairly.

The Government and the various pillars bring different perspectives to this process. For the most part, the problems being addressed need consensus to find resolutions, and such consensus is forged within this social partnership process.

When the process can forge a consensus, it is of benefit to everyone and not just to one or other party to the process. In fact, the development of social partnership in this way supports the democratic process.

A rights-based approach

This national agreement endorses the rights-based approach outlined in the NESC strategy document "Opportunities, Challenges and Capacities for Choice". NESC stated: "Citizenship rights encompass not only the core civil and political rights and obligations but also social, economic and cultural rights and obligations which are embedded in our political culture and which underpin equality of opportunity and policies on access to education, employment, health, housing and social services."

In taking this approach, the agreement is following a growing international trend that recognises citizenship is about more than the right to vote and to hold a passport: it is also about having social, economic and cultural rights, rights that have been badly neglected as emphasis was placed on building up the economy. At EU and UN level, failure to promote some of these rights is now being addressed. At a national level, Ireland now has the potential to underpin the development of these rights. We have the resources. This national agreement seeks to ensure that these resources are distributed in a way that promotes the development of social, economic and cultural rights.

A question of fair shares

Underpinning this new agreement is a growing recognition that the distribution of available resources must be seen to be fair. As a result, the allocation for social inclusion measures within the agreement was dramatically increased and a fairer balance between the various elements of the agreement was developed.

This thrust is highlighted in the section on macroeconomic policy. It points out that the central forecast on which the agreement is built sees GNP growth averaging 5.6 per cent per annum. It also recognises that growth may well exceed this forecast. If growth exceeds the central forecast then the additional national resources will be spent in a balanced way "to accelerate progress towards the priority objectives of the programme, including social inclusion". This is the first time such a clause has been inserted in a national agreement, and it is most welcome.

A question of sustainability

Ensuring that developments are sustainable, socially, economically and environmentally, was a major concern during the negotiations. The World Commission on Environment and Development has described sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".

Central to any model of development that seeks to promote sustainability is the question of what constitutes progress. Traditionally, the discussion about progress tends to focus on the economic dimension while neglecting the social, cultural and environmental dimensions.

The Programme for Prosperity and Fairness addresses these issues. The text states: "There is a need to ensure that the achievement of improvement in living standards in the shorter term is consistent with the long-term sustainability of economic and social progress, including protection of the environment."

To ensure this approach is followed in the future, NESC will consider the development of a framework to bring into operation national progress indicators to measure economic, social and environmental development. This will encompass the availability and use of new forms of data sources.

This is a very welcome development. For the first time a concerted effort will be made to agree a set of national progress indicators, which will include the value of unpaid work, the cost of environmental damage, the cost of resource consumption and a variety of other important measures that help to give a more rounded picture.

Father Sean Healy is director of the Justice Office of the Conference of Religious of Ireland