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    Asymmetric.

    Asymmetric Engagement: The Community and Voluntary Pillar in Irish Social Partnership. Joe Larragy Manchester University Press   Book review by Niall Crowley. Asymmetric Engagement’ by Joe Larragy has a title that would send you to sleep and a cover that is devoid of design, but is actually a good read, telling the story of four community organisations and their engagement in social partnership. Larragy sets out evidence from the experience of the Irish National Organisation of the Unemployed (INOU), the Community Workers Cooperative (CWC), CORI (now Social Justice Ireland), and the National Women’s Council of Ireland (NWCI) to assess their engagement in social partnership over the last two decades. The increasingly accepted polemic on the Left is that this participation achieved little and merely resulted in incorporation by the state. The book gently and rather academically suggests that these claims “derive largely from aprioristic paradigms”. However you want to put it, it is amazing what a little bit of research can do. Larragy, a lecturer in social policy in NUI Maynooth, is the first to generate the evidence and analyse the record. Asymmetric warfare describes patterns of conflict between small mobile groups of guerillas and the standing army of the state. Asymmetric engagement is used by Larragy to “describe patterns of engagement between small, mobile organisations and the political establishment and state bureaucracy on the civil front”. It is useful in placing power and power imbalances at the centre of the analysis of social partnership. Community organisations are identified as being too small for symmetric engagement or bargaining, since they lack power. Larragy emphasises their policy entrepreneurship in terms of the knowledge they hold, the innovation they offer, and their tactical flexibility. Social partnership offered a channel to give expression to these strengths. The influence of these organisations in social partnership is identified as fluctuating with shifts in the position and perspective of the electorate. “When a policy question becomes a major one for the electorate, the profile of small principled campaigning organisations can be heightened”. Headway was made in the early days of involvement in social partnership due to a leftward shift in the electorate. The campaigns of these organisations had a contribution to make in shaping the perspective of the electorate. Larragy identifies this campaigning work as another relevant characteristic of these organisations. The analysis suggests that it “was difficult for independent campaigning organisations not to engage with social partnership once established”. It provided an opportunity to extend the range of tools deployed by these organisations in seeking societal change. The INOU, Larragy points out, “had pursued the protest route but this ultimately led them to engage in social partnership”. The CWC is identified as ambivalent to social partnership but keen to make use of the opportunities afforded. Social partnership did mark a shift from lobbying and protest to negotiation and engagement, but this was a decision based on an understanding of where progress could be made. Noteworthy gains were made, even if the scope of such gains was inevitably limited. The INOU was able to pursue “a raft of very significant policy positions” on unemployment. CORI “had some remarkable success” in their approach to income maintenance. The NWCI secured progress on childcare, gender equality and, to a lesser extent, welfare reform. The CWC was a “force to lever resources for innovative projects” and focused on the alienation of marginalised communities from local government. The book has lessons for today, a low point in the fortunes of the sector. A community and voluntary pillar for social partnership could not have been conceived outside of the circumstances of the mid 1990s, a period of economic crisis when the information about political corruption, that led to a number of wide-ranging tribunals, was surfacing.  These circumstances generated a crisis of legitimacy for the political elite. It would be useful to study how the current crisis of legitimacy resulted in coercion of, rather than engagement with, the sector but it appears the sector cannot call on public or political support as it did in the past. The challenge is to rediscover these attributes outside of social partnership and to rebuild public support through campaigning. • History of Social Partnership 1988-1990    Programme for National Recovery 1991-1993    Programme for Economic and Social Progress 1993    Establishment of National Economic and Social Forum that included a ‘Third Strand’ of community organisations 1994-1996    Programme for Competitiveness and Work 1997    Community and Voluntary Pillar formed and admitted into social partnership 1997-1999    Partnership 2000 1998    Inclusion of Community and Voluntary Pillar in the National Economic and Social Council 2000-2002    Programme for Prosperity and Fairness 2003-2005    Sustaining Progress 2003    Some members of Community and Voluntary Pillar refuse to sign the agreement and leave social partnership 2006-2007    Towards 2016 2006    Community and Voluntary Pillar members who had left social partnership readmitted 2010    Closure of National Economic and Social Forum

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    Predistribute and redistribute.

    By Mary Murphy. The OECD groups Ireland with other English-speaking countries as having relatively high levels of income inequality. TASC has shown that since 1975, while incomes in Ireland doubled overall, incomes tripled for the top 10%, and increased by a multiple of five for the top 1%. While there were reversals for those on high incomes at the onset of the economic crisis, it is clear that since 2011 these have been reversed and income inequality is again rising. Recent work by the OECD shows a significant increase in the share of income going to the top 1% in Ireland. Claiming Our Future is developing campaigns to take on this issue. When it comes to addressing income inequality we can look to predistribution and redistribution. Predistribution involves reducing the share of income that people at the top end of the earnings spectrum derive from the market (wages, shares, bonuses, dividends, rent and  profit). Redistribution involves taxes and income transfers to redirect income from those on higher incomes to those on lower incomes. Predistribution could be achieved by regulating or in some way influencing the maximum a person can be paid. This type of intervention can be done at the bottom of the earning spectrum through minimum wages and living wages. It can also be done at the top end of the earning spectrum to determine maximum wages. Pay-ratio strategies are one example of predistribution. These ratios seek to cap the gap between the highest and lowest wages in any firm. These ideas are not new. More than 100 years ago JP Morgan, the powerful US business financier, argued that executives should earn no more than twenty times the pay of the lowest paid company employee. US President Franklin D Roosevelt championed the idea of pay ratios, as did George Orwell and JK Galbraith. Direct wage ratios of as low as 3:1 have been implemented, most famously in the Mondragon cooperative network in the Basque region of Spain, and perhaps less famously by Medecins Sans Frontieres. These ideas are gaining purchase.  A 2013 Swiss Referendum for a 12:1 pay ratio was defeated. However, it garnered the support of 35% of the electorate. A Toronto-based Canadian ‘wage mark’ campaign for an 8:1 ratio is gaining popular support. Maximum wages have been the subject of public discussion in Ireland. During the crisis various pay caps were introduced in both the public sector (civil servants and hospital consultants) and the private sector (banking salary caps and pay scales in charity organisations).   A more progressive approach 1.    Increase the corporate tax rate or adopt a minimum effective corporate tax rate. 2.    Increase the corporate tax base by removing exemptions and avoidance incentives. 3.    Adopt a tax on financial transactions as is currently proposed and agreed by a group of EU Member States. 4.    Apply a further and higher FTT on speculative financial transactions. Taxing high incomes is central to a redistributive approach to income equality. Tax avoidance and evasion strategies limit national wealth taxation strategies and serve to widen the gap between top earners and lower earners. 5.    Increase the tax rate on higher earnings above specific pay ratio (apply a ten times rule). 6.    Increase effective tax rates by reducing and capping income tax reliefs and exemptions that disproportionately benefit top earners. 7.    Increase Capital Gains Taxes. 8.    Increase Capital Acquisition Taxes. 9.    Tax consumer advertising activity and profits 10.    Reduce VAT while increasing consumption taxes on luxury goods (especially those with negative ecological impacts).     In the UK 20 years ago the typical chief executive of a FTSE 100 company earned some 25 times the pay of the average worker. Today the ratio is close to 120 times. We do not know the typical Irish pay ratio but data from the Survey of Income and Living Conditions show that, compared to other EU countries, Ireland has very high levels of market inequality. Claiming Our Future has commissioned research to establish the wage ratios in different sectors of the Irish economy to build awareness about levels of income inequality in Irish firms. We plan to campaign for legislation that would require firms to publicly report their pay ratios as a pre-condition for eligibility to compete for Government contracts. The rising inequality of recent times is the product of a cultural and political shift. We used to operate within a series of implicit ‘social norms` about what was acceptable behaviour. These worked to impose a kind of natural cutoff. We now defer too easily to wealth and power.  Transparency and public awareness about pay ratios in Irish firms would be a powerful tool to reactivate a ‘shame gene` that once worked to prevent excessive abuse by the economically powerful. Looking to redistribution, various campaigns have called for a progressive income tax on income above ten times the minimum wage. This Ten Times Rule still allows plenty of room for market incentives but restrains winner-take-all markets where the winners get extraordinary largesse. This is not because of the value these people contribute but simply because of the power they exert in the market. The OECD argues that the rich have got richer partly because of a dramatic reduction in the higher marginal-income-tax rates and reduced wealth or capital gains taxes. The mainstream Irish taxation discourse is still focused on a ‘low tax and limited public services’ model perpetuated in Michael Noonan’s anodyne Budget 2015. The counter argument is for not only maintaining but also increasing tax revenues in order to invest in social services. Multipliers from public investments work better than tax cuts as a stimulus to economic growth and are a longer-term investment in a more sustainable recovery. Higher taxes on excessively high incomes and wealth can also promote greater income equality. Research by Tasc, NERI and Social Justice Ireland stresses the regressive nature of the income-tax-reduction options now being proposed for the next two budgets. Lower-income households see no benefits from a wider standard band or a reduction in the

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