IRELAND

At rank 14, Ireland’s status performance has clearly decreased (SGI 2009: rank 10).

As a consequence there is a contrast between the generally upbeat summary provided in 2007 and the much more somber assessment that is called for in 2010.

Over the period in review, Ireland’s economic situation deteriorated dramatically. The dimension of the current economic crisis is still frightening. A bail-out was necessary in November.

One of the few positive achievements during this period was the successful campaign on the second referendum on the Lisbon Treaty.

Ireland has a democracy of high quality (rank 8).

The electoral process is fair and does not overtly discriminate against parties or groups. Public and private media are wholly independent of government, and for a country of just four million people, the variety of print, radio and TV media in Ireland is striking.

Expert ratings for civil rights protection are among the highest in the OECD. By and large, government and administrative units act in accordance with known rules.

The political system came under severe strain during the review period. Although the transition to new leadership following Prime Minister Bertie Ahern’s resignation in April 2008 was smooth, the new government was doomed to falter in the wake of the economic and financial crisis.

During the review period, Ireland suffered its worst economic setback in more than 60 years. In all economic criteria, Ireland suffered huge losses relative to the SGI 2009.

Poor policy decisions and the weak management of problems have aggravated the Irish crisis. Chief among these was the failure of the Irish financial regulatory system to take corrective action to the credit-fueled property boom.

Plummeting confidence in the Irish economy has been stemmed somewhat by the introduction of austerity measures.

Ireland ranks 15th in the SGI’s social affairs category.

During the country’s boom years, the benefits of economic growth were not spread evenly. Growth in social expenditure has lifted many in Ireland out of poverty, but the steep rise in unemployment bought this trend to an end.

Health care is a subject of considerable controversy. Despite widespread criticism, politicians point to progress manifest in a rationalization of care and improved services.

Women are underrepresented in politics and business leadership positions. Recent reforms have offered new support for two-career families.

Traditional a country of emigrants, Ireland’s boom years transformed it into a high net recipient of immigration. However, recession drove a return to net emigration after 2008.

External security is not a major issue in Irish policy-making or political debates. Military spending is low relative to GDP (less than 0.5%) and minimal in absolute amounts. Ireland cultivates close relationships with the UK and the USA in particular. Ireland’s armed forces have in recent years been active in UN deployments.

Since security threats posed by groups such as the IRA have dissipated, concerns regarding internal security issues have faded. Nonetheless, there have been violent incidents in Northern Ireland in 2009 and 2010. The rise of organized crime and “gangland” activities related to the drugs trade is currently the biggest single threat to internal security.

At rank 21, Ireland’s record on resource sustainability has worsened somewhat relative to the SGI 2009.

The country has implemented a wide range of measures aimed at protecting and preserving the environment. In 2007, a national environmental program was designed to comply with EU goals in this area.

Support for R&D and innovation figures prominently from a rhetorical perspective. However, the most striking success of Irish industrial policy has been in the attraction of foreign-owned firms in various high-tech sectors to Ireland.

Confidence in the merits of the educational system faltered as the boom turned into bust, unemployment levels soared and the inflow of foreign investment stalled. The costs of high dropout rates during the growth years are now becoming evident.

At rank 17, Ireland’s management performance has plunged in relative comparison (-5 ranks relative to SGI 2009).

Prior to the global economic crisis, the government adopted a program based on optimistic economic projections that became irrelevant almost overnight in the post-crisis period.

Since 2008, political decision-making has been dominated by short-term crisis management. This has left little room for even medium-term strategic planning.

The government recruited advisers from academia to assist in the crisis. These advisers have had significant influence on policy.

With economic crisis undermining its longstanding model of consensual decision-making, Ireland’s rating on steering capability fell five places relative to the SGI 2009, to rank 14.

Since 2008, government activity has been dominated by short-term crisis management instead of long-term strategic planning. Academics, especially economists, feel they have been neglected during the crisis.

The prime minister’s office oversees the work of the line departments, but considerable energy is devoted to turf wars and bureaucratic infighting.

The country’s model of amicable societal consultation has not weathered crisis well. The government continues to consult with economic and social actors on a wide range of issues, but the process has become very unstable, and the benefits of such outreach are now considerably less evident.

At rank 28, Ireland’s policy implementation capacity has fallen substantially (-10 ranks) as compared to the SGI 2009.

The government’s ability to realize the goals contained in its 2007-2012 policy program was badly undermined by the onset of financial crisis.

The coalition parties have different agendas and priorities. The allocation of ministries between these parties has a significant influence on the coherence of policies in various areas.

Subnational units of government have little autonomy, and depend strongly on grants from the central government. The weaknesses in this system were evident during the extreme weather events of the winter of 2009, which highlighted flaws in infrastructure maintenance.

Holding steady at rank 12, Ireland’s institutional learning capacity falls into the OECD’s upper middle range.

The country has adapted institutions at all levels of government to allow effective functioning within the European context. Ireland prides itself on its enthusiastic participation in international reform initiatives, especially with regard to social progress, human rights and environmental protection.

By contrast, organizational reform capacity is undermined by the lack of regular, systematic monitoring of institutional governing arrangements. The government has not significantly enhanced its strategic capacity through any reorganization of institutional arrangements in recent years.

At rank 14, executive accountability in Ireland remains near the OECD’s middle ranks, despite a particular weakening in the role of interest associations.

The level of debate among citizens on the important issues of the day is fairly high.

The parliament’s ability to play an oversight role has declined somewhat, despite improvement in the efficiency of committees, particularly in terms of their right to summon experts and request government documents.

Newspaper quality and circulation are low by OECD standards, but the main TV and radio stations produce daily high-quality information programs. The main political parties produce detailed electoral programs. The main interest associations have clear lobbying roles, and try to influence policy to the benefit of their members.