Posts

, ,

Ireland’s Poverty Reduction

from-the-troubles-to-recession-to-rapid-growth-irelands-poverty-reductionIreland’s poverty reduction has been impressive, coming from the times of the political and religious troubles of 30 years ago. In 1987, at a poverty line of $5.50 a day, poverty in Ireland was at 3.7%, but in the 21st century, the poverty rate has never been above 1.5%. However, as with the U.S., the recession of 2008 greatly affected the Irish economy. Following the recession, the consistent poverty rate was still 2.5% higher in 2017 than it was in 2008. At the national poverty line, the World Bank suggested the poverty level was at 13.9% in 2019. To make matters worse, 25% of those living in poverty currently are children.

GDP

In 2021 Ireland’s GDP per capita growth rate was 16%. This measurement can be misleading. Despite Ireland having one of the highest GDP per capita in the world, it still faces the issue of poverty. The GDP per capita figure is distorted due to over 1,500 multinational corps being located here and the small population size. As GDP per capita is a measurement of average income across a whole population, extremely rich individuals or companies and small populations can easily distort it.

Despite this, the presence of these large pharmaceuticals and tech firms also have some benefits for Ireland. For example, Apple provides 6,000 jobs in Ireland alone. This proves to be a major contributor to the economy, which in turn provides the government with more funding.

The Irish government reinvests this back into public services. For example, during the pandemic homelessness decreased, dropping below 9,000 for the first time since 2017. On top of this, it is estimated that without Ireland’s welfare system a huge four in every ten of the population would be in poverty. If the country reduces child poverty, this could continue at an even greater rate, as Social Justice Ireland advocates for.

Impact of the Recession

The recession hit Ireland in 2008, resulting in a housing market crash similar to the U.S. This was followed by an economic depression in Ireland in 2009- with GNP decreasing by 12% in the first quarter of that year. The housing crisis also affected many other industries as the population lost confidence in the economy. Unemployment increased by almost 8% between 2008 and 2012.

However, Ireland appears to be crawling out of this “lost decade” of economic turmoil with reduced unemployment, homelessness and high levels of growth. But there are still lasting effects of poverty that Ireland still hasn’t addressed.

Social Justice Ireland outlines the serious problem of in-work poverty in Ireland. In-work poverty was at 6.2% in 2020 and has not shown any signs of decreasing over recent years. COVID-19 appears to have affected these lowest earners as well- with income tax receipts only decreasing by 1% in 2020. Social Justice Ireland believes the country needs to do more in achieving governmental targets, implement more policies to support the ‘working poor’ and provide more support for the poor such as greater enforcement of a wide living wage.

Focus Ireland

Focus Ireland is a prime example of the foundations that helped to foster Ireland’s development post-recession. The organization supports homeless people in Ireland. In 2020, it successfully helped 1,829 households stay out of homelessness or helped them to move to a secure home. Projects like this are helping to contribute to Ireland’s reducing level of homelessness.

Ireland’s poverty reduction is succeeding as it stands, but more help needs to be provided for a large number of working poor and children in poverty.

–Reuben Cochrane
Photo: Flickr

, , , ,

10 Facts About Living Conditions in Ireland

PA 10 Facts About Living Conditions in Ireland
In the past century, Ireland has transformed from a poor agricultural country into one of the best places to live in Europe. Industrialization and foreign investments have brought wealth to the country, which has been used to improve the lives of Irish citizens. These 10 facts about living conditions in Ireland are not without their pitfalls; however, they demonstrate what is possible when an economic boom is met with social conscientiousness.

10 Facts About Living Conditions in Ireland

  1. In the last five years, the living conditions in Ireland have improved faster than any other country worldwide. Between 2012 and 2017, the country rose 13 places on the U.N.’s Human Development Index and now is number 4 after Norway, Switzerland and Australia. This index ranks countries based on life expectancy, access to education and gross national income per capita.
  2. Ireland had the highest birth rate of the European Union (EU) member states in 2017, with 12.9 births per 1,000 people. The country also has one of the fastest growing populations in the EU, a rarity among developed nations. The population grew from 3.1 million in 1911 to 4.59 million by 2011, a 46 percent increase. However, this is still lower than the 8.4 million people estimated to have lived in Ireland prior to the Great Potato Famine of the 1840s.
  3. From 2001 to 2016, the teenage pregnancy rate fell 64 percent, a decrease of almost 2,000 teenage births. This is likely due to the Relationship and Sexuality Education (RSE) instituted in public schools in the 1990s. The 2016 survey, Growing Up in Ireland, found that 79 percent of sexually active 17 and 18-year-olds always used contraception.
  4. Ireland is closing the gap in gender inequality. In 2015, the country ranked eighth in the European Institute for Gender Equality’s index at 69.5 percent, which evaluated work, money, education, time, health and power. It has been rising steadily since 2005 and is currently ahead of the nearby United Kingdom. For example, in 2018, the Irish gender pay gap was 14 percent, which was ahead of Australia at 15.4 percent, the United States at 18 percent, the United Kingdom at 18.4 percent and Canada at 26 percent.
  5. The healthcare system in Ireland is on par with the European average. Both public and private health services are provided by the Irish Government’s Health Service Executive (HSE). About 72 percent of healthcare costs are covered by the government, and the remaining costs are paid for through voluntary healthcare payments or out of pocket. In 2013, 40 percent of people living in Ireland had a medical card that provides free healthcare, with the remaining amount being a subsided fee based on income level. Private (religious or community-based) healthcare is also available at a fraction of the cost of other developed countries.
  6. The cost of living in Ireland is high. Good and services cost 25 percent more than the EU average, with high price tags on essentials such as rent, transportation and child care. There are fewer government services for things like childcare and housing, so the Irish have to rely on private companies. The lack of competition from the government keeps the prices high.
  7. For a full-time worker, the average income is €45,611 per year, a number that has been steadily increasing since 2015. However, the Irish have less disposable income. The OCED average is $30,563, with Ireland averaging $25,439. High personal taxes and the high cost of living eat into these profits.
  8. The amount of public housing is unable to keep up with the population’s need. Almost one in five Irish families now live in a rented home, which is double what it was 10 years ago. This has caused a shortage of rental properties and a significant increase in the cost of rent. There were 1,709 families who had to utilize emergency accommodation services in October 2018, with 3,725 of them being children. The overwhelming number had lost their homes after rent increases priced them out. Nonprofits such as Focus Ireland work to provide services and temporary housing to those who cannot afford the costs of living.
  9. Life expectancy in Ireland is 83 for women and 80 for men, higher than the international life expectancy of 72. That is an increase from 2011 when life expectancy was 76.8 for men and 81.6 for women. The significant rise in healthcare, income and education has contributed to a longer life. Current concerns for life expectancy are obesity and alcoholism.
  10. Ireland ranks 14 out of 156 countries on the World Happiness Report, trailing behind Finland, Norway, Denmark and other Nordic nations. Meik Wiking, CEO of the Happiness Research Institute, says that the happiest countries “are good at converting wealth into well-being,” a skill the Irish have proven adept at. Ireland also has a strong sense of family and community. At least 96 percent of people surveyed by OECD believed that they had a reliable friend or family member on whom they could lean in times of need.

Ireland has made enormous leaps in development in the past century, enabling the country to improve its living conditions exponentially. The world happiness index has shown that people are willing to tolerate a high cost of living when the quality is above and beyond. However, there will have to be solutions developed for those who find the cost of living too far out of reach, or the current problems will only grow worse.

– Jackie Mead

Photo: Upsplash