Sunday Star-Times

Mission that’s not impossible

The New Zealand Initiative has a boldness challenge.

- Rod Oram

Small countries like ours have some advantages, such as sometimes acting quickly and decisively on policy and strategy.

They also have disadvanta­ges, such as a dearth of independen­t economic, social and policy analysis. Orthodoxy rules, which usually means the government of the day picks the advice that best suits its political agenda.

Worse, combining speed with orthodoxy creates great risk for government and business. They can charge ahead with insufficie­nt regard for big shifts going on in the world.

We’ve never solved this dilemma. The Business Roundtable was a strong source of advice from the mid-1980s to the mid-1990s. It greatly influenced successive government­s and was widely backed by business.

It became the new orthodoxy, but one seriously out of step with large segments of society. Worse, it failed to evolve with the world. By the mid-1990s it was still pushing its hard right, pure market, small government ideology.

By the new millennium the Roundtable had made itself irrelevant. It had advice to give on the likes of e-commerce and new internatio­nal business models for small, highly entreprene­urial NZ companies.

We had to wait until the establishm­ent of the New Zealand Institute in 2004 to begin to get analysis on New Zealand’s best options for this new world economy. David Skilling and his successor Rick Boven produced a wealth of research and advice.

However, government and business were too cautious to break out of their status quo and run with the Institute’s insights.

By 2012, the business community had a problem. Roger Kerr, the man who had driven the Roundtable with fierce determinat­ion from its inception, had died the previous year and the organisati­on’s narrowly ideologica­l business supporters had dwindled to a few. The Institute’s more broad-minded corporate supporters were losing their enthusiasm too.

In a rare rapprochem­ent, the two groups combined to create the New Zealand Initiative in 2012. It hired Oliver Hartwich, a German who began his career as a policy researcher in the UK in 2004.

The choice of ‘‘initiative’’ as the new organisati­on’s operative word in its name was telling. Two dictionary definition­s are ‘‘the ability to assess and initiate things independen­tly’’ and ‘‘the power or opportunit­y to act or take charge before others do’’

To mark its fifth anniversar­y, the Initiative has just published its Manifesto 2017, laying out its policy advice to all parties.

Some characteri­stics are common to its views on local government, housing and education: a very strong belief in local entreprene­urship by councils, companies and schools; strong competitio­n between highly local organisati­ons; and the success this formula has brought to German and Swiss communitie­s competing with their domestic counterpar­ts.

Some of the Initiative’s policy

Government and business were too cautious to break out of their status quo and run with the Institute’s insights.

recommenda­tions make great sense, such as central government granting local councils new forms of revenue generation. Our government finance is the third most centralise­d in the OECD, which denies councils the opportunit­y to invest properly in their communitie­s.

While the Initiative does quality work, that output is far too narrowly focused and inadequate­ly adapted to New Zealand. Moreover, it offers solutions to particular issues in the three sectors. It does not offer a coherent view on how the sectors might progress comprehens­ively.

Nor does it do research on global business and economic trends and what they mean to New Zealand, the analysis that made the Institute’s insights so useful.

Its biggest weakness though, is its complete lack of work on worldchang­ing challenges such as climate change, and the profound technology shifts in agricultur­e, energy and other sectors driving the transition to low carbon, more sustainabl­e economies.

Nor does it offer any insight on how New Zealand might best respond to the fast changing nature of societies, politics and government underway in some countries.

If the Initiative could articulate a strategy for its own rapid developmen­t, hopefully it would gather greater support from business and wider society. Then it could fulfil the bold mission its name promises.

 ??  ?? German-born Oliver Hartwich arrived in Wellington to build an entirely new organisati­on.
German-born Oliver Hartwich arrived in Wellington to build an entirely new organisati­on.
 ??  ??

Newspapers in English

Newspapers from New Zealand