Chapter 1:
The Challenges
1.1. - This national agreement, the Partnership 2000, for Inclusion, Employment and Competitiveness, represents a strategic approach to lead the Irish economy and society into the 21st Century.
1.2 - The key objectives of the strategy are the continued development of an efficient modern conomy capable of high and sustainable economic and employment growth and operating within the constraints of international competitiveness, ensuring that Irish society becomes more inclusive, that long-term unemployment is substantially reduced, and that the benefits of growth are more equally distributed. The strategy provides a framework within which specific issues or programmes will be developed, in the normal way.
1.3 - In accordance with previous agreements, discussions on this Partnership were conducted within the framework of the National Economic and Social Council Report, Strategy into the 21st Century and the views expressed in the National Economic and Social Forum Report, Post PCW Negotiations — A New Deal?
1.4 - Submissions, responding to both these reports, were formally presented in the Opening Discussions for a new agreement at Dublin Castle, October 23rd 1996, by nineteen organisations. These were Irish Business and Employers Confederation (IBEC), Irish Congress of Trade Unions (ICTU), Construction Industry Federation (CIF), Irish Farmers Association (IFA), Irish Creamery Milk Suppliers Association (ICMSA), Irish Co-Operative Organisation Society Ltd. (ICOS), Macra na Feirme, Irish National Organisation of the Unemployed (INOU), Congress Centres for the Unemployed, The Community Platform [ Fn 1: The Community Platform was set up by the Community Workers Co-operative, the Irish National Organisation of the Unemployed, the National Womens' Council of Ireland, Irish Rural Link, Irish Traveller Movement, Focus on Children, Gay and Lesbian Equality Network, One Parent Exchange Network, Conference of Religious of Ireland, Forum of People with Disabilities, Pavee Point, Community Action Network, European Anti-Poverty Network and Irish Commission for Prisoners Overseas as a mechanism to organise the participation of this sector in the Partnership.] , Conference of Religious of Ireland (CORI), National Womens' Council of Ireland (NWCI), National Youth Council of Ireland (NYCI), Society of Saint Vincent de Paul, Protestant Aid, Small Firms Association (SFA), Irish Exporters Association (IEA), Irish Tourist Industry Confederation (ITIC) and Chamber of Commerce of Ireland (CCI).
1.5 - On the basis of the NESC and NESF reports and the wide and comprehensive discussions on this Partnership the three essential economic and social challenges facing the economy and society can be summarised as:
1.6 - These challenges emerge from the context in which the Irish economy and society finds itself at the end of 1996. A detailed review of the Irish economy and society since 1960, together with the changing global environment, clearly indicates three points: firstly, that problems can arise as much in periods of strong economic growth as in periods of recession; secondly, that economic growth does not ensure that all members of society benefit equally or even at all; and thirdly, that the rapidly changing external environment requires a thorough examination of the way economic activity is organised at both the level of the firm and of the state, and of its impact on families and individuals.
Managing Growth
1.7 - This Partnership has been formulated against a background of rapid economic growth. The challenge is to maintain a shared understanding of the mechanisms and relationships in the Irish economy and society so that the resultant co-ordinated economic response from the various economic actors that served well in a time of crisis, will continue in a time of prosperity. Such a strategic response is essential if short-term opportunism, with its attendant negative impact on competitiveness, is to be avoided.
1.8 - The key responses of this Partnership to the challenge of managing rapid growth are:
Reducing Social Disparities
1.9 - The essential challenge of this Partnership is to address the growing problem of inequality, of which long-term unemployment is a major cause. While the majority of the population have benefited from the economic growth and related social progress of the last three decades, many continue to experience increasing marginalisation.
1.10 - This challenge of greater social inclusion can only be met through a strengthening of economic capacity and the adoption of a coherent inclusion strategy — outlined in Chapter 4. This strategy is specifically targeted at those experiencing inequality and social exclusion and, within its framework, a number of key priorities are identified.
1.11 - Facing the challenges of the 21st Century also requires a new focus on equality, which implies the adoption of a strategic approach — outlined in Chapter 7 — for the full integration of women and of people with disabilities. Travellers and other groups experiencing discrimination. It includes the promotion of greater equality of access, participation and outcomes for all marginalised groups in our society.
Responding to the Changing Environment
1.12 - The Irish economy operates in a rapidly changing environment in which continuous technological and organisational innovation are imperative, rather than merely desirable, both within and between firms in the Private Sector, within the Public Sector and in the role of Government itself. The necessity for positive flexibility and rapid responses to change are underscored by the size and openness of this economy.
1.13 - Institutional developments, including preparation for the third and final stage of EMU, enlargement of the EU, World Trade Organisation negotiations on a new trade round and the review of EU Structural and Cohesion funding, re-inforce the challenge of a competitive global environment.
1.14 - Competitiveness is determined by relative performance on pay, taxes and public expenditure but also, and equally, by other factors such as productivity, innovation, education and training and the cost and quality of services provided by the State and state sponsored bodies. Improvements in social solidarity and increased social inclusion make an important contribution to sustaining competitiveness and society's overall efficiency and cohesion.
1.15 - The third major challenge that this Partnership faces is to make competitiveness and social solidarity self-sustaining. The challenge of global competition and the information society requires continuous innovation, flexible working methods, highly skilled workers and life long learning.
1.16 - Action to meet the challenge of global competition and a rapidly changing environment will be pursued through the modernisation of the economy, outlined in particular in Chapter 6 — Action to Promote Enterprise and Jobs, Chapter 7 — Action on Small Business and Chapter 8 — Action to Develop Agriculture, Food and Forestry, to make it more competitive by way of the development:
