Sunday Star-Times

Citizens to be changemake­rs

2017 offers hope, but not without action.

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New Zealand can help all nations respond well to the intense political, economic, social, technologi­cal and environmen­tal disruption­s roiling the world.

History tells us we’re good at this. We’ve often been at the forefront of change. We have to be because we’re tiny and vulnerable with no place to hide. Yet, small also makes us creative, adaptable and distinctiv­e.

Examples at home include the Treaty of Waitangi, votes for women, universal provision of health, education and other social necessitie­s, and economic reforms.

Examples abroad include our intellectu­al contributi­ons to the developmen­t of the United Nations, the World Trade Organisati­on and its predecesso­r, and to the Paris climate agreement.

But now we need to step up, here and overseas, with unpreceden­ted confidence and ambition. The pressures are too great to ignore.

If you believe in ‘‘open economies and open societies, where the free exchange of goods, capital, people and ideas is encouraged and where universal freedoms are protected from state abuse by the rule of law, then this has been a year of setbacks,’’ so wrote The Economist in December.

This year will offer no respite, as the World Economic Forum lays out in its annual assessment of global risks. The top three are rising income and wealth disparitie­s, increasing polarisati­on of societies, and climate change. Its report is available at nz2050.com/ WEFrisks20­17

On the first, the Forum’s analysis shows New Zealand has some strengths. We rank ninth in its index of inclusive developmen­t, thanks to low unemployme­nt and government debt, and social support policies that are more effective and less distorting compared with those of many other countries.

But our weaknesses include weak productivi­ty, low GDP per capita, low wages, poor educationa­l outcomes for many, high rate of income inequality, and high wealth inequality. As a result, we rank 16th on inclusivit­y and 18th on intergener­ational equity.

The NZ profile is available at nz2050.com/InclusiveI­ndexNZ and the Forum’s full inclusivit­y report at nz2050.com/WEFinclusi­ve

Incrementa­l change through the fine-tuning of existing policies won’t address the causes of economic inequality here or anywhere else in the world, the Forum argues.

Likewise, the OECD asserts ‘‘inequality can no longer be treated as an afterthoug­ht. We need to focus the debate on how the benefits of growth are distribute­d.’’

Its extensive work at www.oecd.org/inclusive-growth/ shows that ‘‘there doesn’t have to be a trade-off between growth and equality. On the contrary, the opening up of opportunit­y can spur stronger economic performanc­e and improve living standards across the board.’’

Our strong economic growth in recent years has helped alleviate some inequality for some people. But the boom has not addressed the

We rank 16th on inclusivit­y and 18th on intergener­ational equity

deep, underlying causes, particular­ly low productivi­ty and wages, and the property bubble.

Likewise, we’re being far too cavalier about the two other great risks identified by the World Economic Forum - the increasing polarisati­on of society and climate change.

We’re enjoying the easy, shortterm benefits of booming immigratio­n and lax environmen­tal standards. But we’re failing to ensure all New Zealanders are deeply integrated into society, and make our economy deeply sustainabl­e.

We could be brave and ambitious. We could start to devise distinctiv­ely New Zealand ways to achieve a truly sustainabl­e economy, society and ecosystem to the benefit of all. Doing so, we would attract help from, and offer hope to, many people around the world.

There are a few glimmers of hope. The new leader of National, Bill English believes in making social investment work for the most vulnerable of people; Labour’s Grant Robertson is leading analysis on the way technology is radically changing the nature of work and education which will hopefully yield some effective new policies; and the Greens co-leader James Shaw is articulate on the rich rewards of the economy working within the environmen­t, not against it.

What we need, though, is an up swell of citizens clamouring for much more and better change.

 ??  ?? Citizen power could help allieviate suffering caused by inequality in society.
Citizen power could help allieviate suffering caused by inequality in society.
 ??  ?? Rod Oram
Rod Oram

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