In an unsustainable, unfair society, even those with higher incomes are not necessarily better off, writes Fr Seán Healy
Irish society is faced with great opportunities, challenges and choices at this time. Much has been achieved. The economy, employment and the public finances are in a very healthy state. Ireland is among the wealthier countries in the world and living standards have risen dramatically.
However, Ireland has many outstanding problems that need to be addressed. Among these are a lack of fairness and a lack of wellbeing.
Poverty persists for large numbers of people. Some who are benefiting from recent economic growth find this hard to understand.
The poverty line for a single person in the Republic of Ireland is €199.43 a week in 2005. While this amount is very basic, the lowest social welfare rate for a single person is only €148.80 in 2005. The most recent study from the CSO shows that 22.7 per cent of the population are at risk of poverty - the highest level for any country in the EU.
The composition of those in poverty has changed. Today 60 per cent of those at risk of poverty live in households headed by a person who is outside the labour force (they are elderly, ill, have a disability or are in caring roles). Another 25 per cent are employed but receive low pay. Only 7.3 per cent live in households headed by a person who is unemployed. So, more jobs are not a panacea for the current poverty problem. Solutions include increasing social welfare rates (to address the poverty of those outside the labour force) and making tax credits refundable (to address the risk of poverty of those who have a job).
A range of other issues highlights the lack of fairness: a lack of adequate provision in areas such as social housing, education, healthcare and public transport. These issues must be addressed if we are to be a fair society.
There are also major questions concerning the wellbeing of Irish people generally. Successive governments have sought to promote wellbeing through increasing economic growth. This approach is based on the belief that increasing national and individual incomes will provide people with more choices in their lives. This in turn is seen as the best way of ensuring people's wellbeing.
Ireland has been doing well. More people have jobs, better education, health, homes, cars and holidays. We should be happier as our income grows. But indicators of wellbeing, ranging from depression to crime, are suggesting that the practice is not delivering on its promise.
In the UK, economic output has almost doubled in the last 30 years but life satisfaction has remained flat. In reality while increased income is important, it does not lead directly or inevitably to greater wellbeing.
More and more people commute long distances to work, spend longer hours on the job, are burdened with large debts, have less time for themselves, their families and their communities and feel less secure about their future in a highly competitive and rapidly changing environment. This situation is not socially sustainable.
If these issues are to be addressed we need action focused on supporting wellbeing. In a recent publication the New Economics Foundation in the UK identified eight inter-related areas where action could be taken to promote wellbeing. They are:
• measure what matters - produce a set of national wellbeing accounts;
• create a wellbeing economy: employment, meaningful work and environmental taxation;
• reclaim our time through improving our work-life balance;
• create a flourishing education system;
• refocus the health system to promote complete health;
• invest in early years and parenting;
• discourage materialism and promote authentic advertising;
• and strengthen civil society, social wellbeing and active citizenship.
The scale of the challenge ahead can be encapsulated in the projected growth in Ireland's population. Our population of 4 million is projected to reach 5.5 million by 2030 - just 25 years away. That growth of 1.5 million will mean that:
• the proportion of foreign-born persons could exceed 1 million by 2030 compared with 400,000 at the time of the 2002 census;
• the labour force will be at 2.6 million in 2030 compared with 2 million at present;
• the number of private households is likely to be 2 million compared with 1,280,000 in 2002;
• of these, the number of one-person households will be about 500,000 compared to 270,000 now.
As Ireland negotiates this new reality it faces a number of challenges, two of which stand out:
- many people's wellbeing has not improved, despite increased incomes;
- and many people have benefited little from the economic growth of recent years and are at risk of poverty and exclusion.
Sustainable pathways are required to secure fairness and wellbeing for all in a land that now has more than sufficient resources to secure both.
Fr Seán Healy is director of the CORI Justice Commission