The "Celtic Tiger" economy has made a huge contribution to social progress but has been associated with widening inequalities and increased pressures on families and communities, a new report said today.
The National Economic and Social Council (NESC) today presented its discussion document The Developmental Welfare State, which it described as a comprehensive framework for the development of social policies in Ireland.
It was received by Taoiseach Bertie Ahern at a conference in the Royal Hospital, Kilmainham, in Dublin this morning.
The authors of the report argue that good economic performance and improved social protection are neither intrinsically opposed nor automatically linked.
Many policy changes, including the strong increase in social spending, suggest that Ireland's hybrid system of social protection is performing well, according to the report.
But other social deficits - including long-term dependence on social assistance, educational disadvantage, poverty in old age, limited childcare and care for the elderly, and severe barriers to people with a disability- are not adequately addressed, the report says.
It adds that a key challenge for Ireland is to devise a social welfare system that not only addresses social risks, needs and inequalities more adequately, but also connects with our dynamic economy.
The report calls for a more pro-active approach to integrate social welfare, access to services, and training and education programmes, so that employment with progression prospects becomes a genuine option for those with low skills.
Mr Ahern welcomed the NESC report and said it showed that we have reached a stage in our national development where our future economic performance needs a greater concentration on social policies.
"This is a challenge the Government wholeheartedly accepts," he said. "We must bring the same determination to Ireland's social policies as we successfully brought to bear on improving our economy over the last two decades."
Mr Ahern said Ireland did not have the high unemployment or large elderly populations of some of our EU neighbours, but he acknowledged that "we do face serious social challenges".
The Taoiseach said delivering improved social services required a response from all the social partners. He said today's study provides "a rich and balanced analysis" of what is unhelpfully termed "the problem of welfare dependency".
He said: "In my experience, people do not make potentially life-determining choices - for example becoming a lone parent - in order to live the rest of their lives on means-tested social assistance. I do recognise, however, the difficulties they may have in leaving it once they have been reliant upon it for a long time."