Poverty: Ireland is winning the war

Sydney
17 August 2003

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Poverty: Ireland is winning the war

By Johanna Bennett

Ireland, which has an economic growth rate of more than 10 per cent, has become a world leader in policies to combat poverty, as well as a new economic powerhouse.

Its attack on poverty is spearheaded by the appropriately named Combat Poverty Agency. Its aim is to ‘poverty proof’ Ireland.

Ireland’s phenomenal growth rate has been crucial. This peaked in 2001 with an 11.5 per cent growth in gross domestic product.

It saw unemployment drop from 15.9 per cent in 1993 to just 4.3 per cent in 2000 and ‘consistent poverty’ drop from 15 per cent in 1994 to 5.2 per cent in 2001. (Consistent poverty is Ireland’s measure of general poverty and includes those who have less than 70 per cent of the median income, about A$340 per week per adult).

At the same time the child poverty rate has also fallen - from 24 per cent to six per cent.

Helen Johnston, director of the Combat Poverty Agency, has been in Australia to tell the St Vincent de Paul Society how her agency

has helped cut Ireland’s general poverty rate and its appallingly high child poverty rate.

Vinnies is anxious to see whether the Irish experience is relevant to Australia, which, like Ireland, has a high level of poverty despite having experienced great economic growth in the past decade.

The UN’s 2003 Human Development Report says Ireland experienced the best economic performance out of 17 selected OECD countries between 1990 and 2001.

Australia came fourth.

Ireland came 16th when it came to poverty levels; Australia scarcely did better at 14th.

Ms Johnston made it clear that Ireland could not have reduced general poverty from 15 to 5.2 per cent of the population if it had not experienced phenomenal growth.

But the work of her agency has also played a part. This started six years ago when a national anti-poverty plan was put in place.

It is still in its early stages, but it has already scored a couple of goals by putting the aim of eradicating poverty at the heart of every government department - they must report on the ‘poverty effect’ of all new policies. And it has also secured the support of both sides of Irish politics and survived a change of government.

Successful ‘poverty proofing’ initiatives so far include a 150 per cent increase (over three years) in universal, non-means tested child benefits, a minimum wage and an increase in social welfare payments above the level of inflation.

This will help address the problem of the working poor - a problem Australia has too.

Early school leaving, which is linked to poor employment prospects, has been cut from 31 per cent of students to 15 per cent.

Work is also under way to secure more family support help and equality initiatives; and there is a move towards ensuring those on a minimum wage pay no tax.

Ms Johnston says that although economic growth has done much to lift Ireland out of poverty “a rising tide does not lift all boats”. The need to address poverty issues remains, particularly child poverty.

But, the anti-poverty strategy has helped make a difference by raising social and political awareness of poverty and the need to address it through ‘poverty proofing’.