Notes on the Front

If a graph can chart a thousand words, how many does two graphs chart? The math is not that simple – especially when you’re comparing Ireland’s comparative standing in both social justice and financial wealth.

In this first graph – from the Bertlelsmann Stiftung foundation – brings together OECD and related data to rank countries in terms of social justice. The data encompasses poverty avoidance, access to education (in particular, pre-primary), labour market participation, social cohesion, equality and environmental / intergenerational justice.  These findings were reported in the Irish Times but there’s nothing like a chart to visualise our place among other OECD countries.

We rank 27th out of 31 in the Foundation’s rankings. We are bottom-dwelling – even below the US which is noted for high-inequality. Within the EU-15 we rank 14th, behind poorer countries like Portugal, Italy and Spain.

You might conclude from that we are a rather poor country – unable to afford the necessary economic programmes to ensure social equity. But you’d be wrong.

In the second chart, from the Allianz Global Wealth Report 2010, which charts financial wealth or property (all non-housing/land property such as cash, shares and equity, pension pots, bonds, etc.)? This draws on official data – for Ireland, CSO data is used – and this graph ranks financial wealth per capita.

We can see that Ireland is hardly a ‘poor’ country. In fact, it is one of the financially wealthiest.

Ireland ranks 9th out of 31 OECD countries – well above average. In the EU-15 we rank 5th.

Of course, this doesn’t mean we all share in it. Financial wealth is highly concentrated. As a rule of thumb, the top 1 to 2 percent of the population own a third of all financial wealth.

If this ratio holds in Ireland, the top 2,000 to 4,000 households own approximately €100 billion in financial property.

So Ireland ranks high when it comes to financial wealth for the top households, but at the bottom for social and economic programmes for low to average income earners. Is this a result of some type of economic determinism?  Or is it a political choice?

Two graphs for two Irelands.