South Africa urgently needs a ‘social compact / dialogue’: are there any historical lessons to learn from Irish system of social compacts?

In the face of sluggish economic growth, debilitating triangle of unemployment, poverty and inequality the South African policy makers are at their wit’s end. Recognisably, most stake holders are evoking the need to forge a ‘Social Compact/ dialogue’ if South Africa will make significant strides in solving its problems. The latest contested policy framework, the National Development Plan (2012), also revoke the need for “A social compact to reduce poverty and inequality, and raise employment and investment.” Ireland provides some lessons for the needed social compacts in South Africa since it managed to pursue the route of policy negotiations when it was hit by an economic crisis in 1987. The Irish compacts were without problems and there is no consensus as to the real effects of the social compacts implemented in Ireland. This paper argues that Social compacts in South Africa are a possibility albert with huge challenges to be overcome before they can be achieved and the Irish case illuminates such challenges.