Social partnerships have existed since the 1980s, but have mainly been implemented when financial difficulties occur. Research shows that social partnership was born in Ireland when the country was in a difficult economic situation. This can be clearly demonstrated when Eileen Connolly (2007) states that: For almost 20 years the Irish State has been engaged in a process of social concentration which has produced three-year agreements between the social partners and the Government. Since 1987, as a response to the economic crisis, the Irish “social partnership” has received international attention because it has been closely associated with the spectacular success of the Irish economy. The economic success of the Irish development model had, by the end of the 1990s, produced practically full employment and budget surpluses. (p.3). Ireland has managed to transform itself from one of the poorest countries in Europe to one of the richest in fifteen (15) years. The economic transformation of the country occurred at the moment of the institutionalization of the social partnership through three-year collective agreements (Baccaro & Simoni, p.1). Ireland's economic success can be attributed to the implementation of social partnerships which laid the foundation for economic growth. Connolly (2007) further noted that social partnership has had a huge impact on Ireland's successful outcomes by creating a “stable context for economic growth; creates consensus for difficult political decisions while avoiding social and industrial conflicts; and provided a predictable policy environment for business and foreign direct investment.” Ireland was able to take advantage of the other various aspects that supported and encouraged growth, including “the availability of EU funds; growing...... middle of paper ......r, technology and process) and introducing performance-based compensation concepts in both the public and private sectors. The success of such a regime will therefore lead to greater competitiveness and sustained economic growth. (p.43) “The current Barbadian government governing the public sector recognizes that, with the advent of social partnership, it has played a significant role in reorienting and reinvigorating the Barbados economy.” (Springer, 2010, p., 42).“Private sector organizations agree that the Social Compact played an important role in the initial stages of its establishment” (Springer, 2010, p. 42)Both in the private sector and in the public one in Barbados there were many investment opportunities which led to the creation of many jobs for the country's population and it was a way to raise capital to further finance these efforts.