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How Governments Retrench In Crisis: The Case of Ireland

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  • Niamh Hardiman

    (UCD Geary Institute, School of Politics and International Relations, University College Dublin)

  • Muiris MacCarthaigh

    (School of Politics, International Studies and Philosophy, Queens University Belfast)

Abstract

The Irish experience of fiscal retrenchment under crisis conditions poses new questions of governance, the evolving answers to which are likely to involve importance changes in the state’s organizational profile and in its policy competences. The government is required to formulate and implement extremely tough choices, particularly since Ireland entered an EU-IMF loan programme in November 2010. Yet government does retain some policy discretion in the priorities it adopts in the composition of budget adjustment and in the distributive impact of cuts. This paper sets out to explore where the adjustments have been made through examination both of the composition of budgets and of the organizational configuration of state institutions, and it analyses how these outcomes can be accounted for. The paper draws upon a new official database setting out a detailed compositional analysis of Irish public spending between 2008 and 2012, and upon the Irish State Administration Database (http://isad.ie) through which the organizational aspects of the state's policy capacity can be analysed.

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File URL: http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201315.pdf
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Bibliographic Info

Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 201315.

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Length: 42 pages
Date of creation: 26 Sep 2013
Date of revision:
Handle: RePEc:ucd:wpaper:201315

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Related research

Keywords: Ireland; Retrenchment; Public Administration; fiscal politics; economic crisis;

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  1. Sebastian Dellepiane & Niamh Hardiman, 2012. "Fiscal Politics In Time: Pathways to Fiscal Consolidation, 1980-2012," Working Papers 201228, Geary Institute, University College Dublin.
  2. Alberto Alesina & Roberto Perotti, 1995. "The Political Economy of Budget Deficits," IMF Staff Papers, Palgrave Macmillan, vol. 42(1), pages 1-31, March.
  3. Martin Larch & Alessandro Turrini, 2008. "Received wisdom and beyond: Lessons from fiscal consolidation in the EU," European Economy - Economic Papers 320, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  4. Niamh Hardiman & Muiris MacCarthaigh, 2010. "Organising for Growth: Irish State Administration 1958-2008," The Economic and Social Review, Economic and Social Studies, vol. 41(3), pages 367-393.
  5. Kelly, Eilish & McGuinness, Seamus & O'Connell, Philip, 2009. "Benchmarking, Social Partnership and Higher Remuneration: Wage Settling Institutions and the Public-Private Sector Wage Gap in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 40(3), pages 339–370.
  6. Callan,Tim & Keane,Claire & Savage,Michael & Walsh,John R., 2012. "Distributional Impact of Tax, Welfare and Public Sector Pay Policies: 2009-2012," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2012(4-Winter ).
  7. Roberto Perotti, 2012. "The "Austerity Myth": Gain without Pain?," NBER Chapters, in: Fiscal Policy after the Financial Crisis, pages 307-354 National Bureau of Economic Research, Inc.
  8. Kenneth Benoit & Michael Laver, 2005. "Mapping the Irish Policy Space - Voter and Party Spaces in Preferential Elections," The Economic and Social Review, Economic and Social Studies, vol. 36(2), pages 83–108.
  9. Roberto Perotti, 2011. "The "Austerity myth": Gain Without Pain?," BIS Working Papers 362, Bank for International Settlements.
  10. Sebastian Dellepiane & Niamh Hardiman, 2011. "Governing the Irish Economy: A Triple Crisis," Working Papers 201103, Geary Institute, University College Dublin.
  11. Roberto Perotti, 2011. "The "Austerity Myth": Gain without Pain?," Working Papers 430, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  12. Barry, Frank, 2009. "Social Partnership, Competitiveness and Exit from Fiscal Crisis," The Economic and Social Review, Economic and Social Studies, vol. 40(1), pages 1-14.
  13. Perotti, Roberto, 1998. " The Political Economy of Fiscal Consolidations," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 367-94, March.
  14. Niamh Hardiman, 2006. "Politics and Social Partnership - Flexible Network Governance," The Economic and Social Review, Economic and Social Studies, vol. 37(3), pages 343–374.
  15. Sebastian Dellepiane & Niamh Hardiman, 2012. "The New Politics of Austerity: Fiscal Responses to the Economic Crisis in Ireland and Spain," Working Papers 201207, Geary Institute, University College Dublin.
  16. Perotti, Roberto, 2011. "The "Austerity Myth": Gain without Pain?," CEPR Discussion Papers 8658, C.E.P.R. Discussion Papers.
  17. Fabian Valencia & Luc Laeven, 2012. "Systemic Banking Crises Database: An Update," IMF Working Papers 12/163, International Monetary Fund.
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