Economic growth needs ‘tall poppies’

NOT too long ago, the South was written off as an anachronism, a cultural and economic wasteland spluttering its last sorry gasps as the rest of the country soared ever onwards.

But the South has forged on and it should come as no surprise when nationwide economic confidence surveys show the region to be in rude health and high spirits. As reported in the Otago Daily Times last week, levels of household economic confidence in Otago and Southland are among the highest in the country. This is good news. But it is news to be taken with a pinch of humility and a generous dash of circumspection.

The enormous marketing extravaganza that was The Lord of the Rings trilogy brought a surge of tourism to the South, while over the past 10 years population growth brought masses of people and money to our shores. Overseas calamities and terror fears, coupled with a steady government and a prosperous, safe and progressive society, made New Zealand an enviable destination for immigrants and expats.

Much of our region’s, and New Zealand’s, economic growth of the past 10 years has been driven by this population rise. But while a rising population stimulates an economy, it also causes growing pains and costs. And, of course, the only way to sustain economic growth dependant on a rising population is to ensure the population continues rising.

To many in New Zealand that is a good scenario — we are a sparsely populated country demanding everbetter infrastructure be shared across relatively few taxpayers. On the other hand, many New Zealanders like the country just as it is and would forgo some economic gains for population stability.

Either way, population growth is not something the South can bank on. International factors can and do impact population flows, impacts which are out of our control. Similar international factors could also conspire to harm our tourism industry.

Nor can the South continue to depend so heavily on primary industries. Horticulture, agriculture, forestry, fishing, mining and more are still, despite what some citydwellers believe, the economic backbone of the country and our region. But automation and computerisation are marching forward at bewildering speeds, threatening the number of jobs available in these industries.

At the same time people are, rightly or wrongly, complaining about the effect primary indust ries have on the land. A resilient economy is one not dependent on one sector alone — especially a sector staring down the barrel of such potential roadblocks.

The South must strive to maintain and increase its economic confidence. How that is done is not a mystery — it is through people that economies succeed. Land, rocks, cows and trees do not make money. It is the people who look at them, who see a demand, see a means of meeting that demand and who then work to do so in a profitable manner who make money.

It is entrepreneurs, business people, people with great ideas, with industrious attitudes who roll up their sleeves and insist they can succeed. It is the tall poppies among us. And that is a problem for New Zealand, and for the South, as we like to cut our tall poppies down.

We must not. As our region confronts evergrowing changes, we should demand our leaders — those in politics, education and industry — champion and encourage our people to be standouts, to be exceptional, to be the drivers of our economic success.

Rather than sitting on our laurels, we should see this moment of economic achievement as a chance to invest in our future economic security. To do so requires no spending, no infrastructure, no policy changes.

Instead it involves nurturing, encouraging and instilling confidence in our present and future entrepreneurs, business leaders and innovators, while suppressing our longheld instinct to chop tall poppies down to size. To do so would see an economic confidence worth true celebration.