The politics of structural reform in Ireland: Dominant growth coalitions, domestic business elites, and internal devaluation

This paper broadens the scope of the Growth Model (GM) research agenda beyond the study of ‘core’ business elites by investigating the influence of (oft-neglected) non-core business actors and sectoral interests in determining growth strategies. To do so it looks at a crucial case in the GM debate: Ireland. Ireland’s robust recovery from the eurozone crisis has set it apart from the rest of the eurozone periphery. For GM scholarship, Ireland’s recovery has been driven by its long-established multinational/export sector, which is relatively indifferent to the effects of austerity and internal devaluation. Why, then, was internal devaluation a central plank of Ireland’s crisis response and Economic Adjustment Programme (EAP)? Drawing on 10 original interviews with Irish business elites and policy makers and documentary evidence, this paper shows that domestic, not multinational, business elites played a key role in framing conditionality related to competitiveness and labour market reform in the Irish EAP. This challenges the concept of ‘dominant growth coalitions’ and argues that an exclusive focus on ‘core’ business elites neglects the ability of other fractions of business power to determine growth strategies. Looking beyond ‘core’ business elites makes it possible to identify transformation behind more obvious patterns of continuity.