Sustainable Economic Strategies

Abstract

This document seeks to objectively compile available literature and report emerging issues considering aspects of sustainable economic development. In conducting this exercise it has become evident that both sustainable development and globalisation are topics whose meaning and impact have yet to be widely understood and endorsed within New Zealand. Every effort has been made to capture the nature of the current debate surrounding these issues, and in general the content of the various viewpoints has been presented verbatim with referencing, using internet references where available. Quite deliberately the author has attempted to avoid emphasising a single viewpoint, while taking care to compile a coherent report addressing the topic at hand. Definitions of economic growth and sustainable economic development are first considered, including comments on environmental and indigenous culture implications and the notion of triple bottom line reporting. This is followed by a brief account of New Zealand’s past economic performance. Details of New Zealand’s decline in prosperity with respect to its OECD contemporaries are considered, and the influence of the economic reforms of the late 1980’s and early 1990’s is discussed. Next the policies initiated by the current Labour-Alliance government are considered. These policies were designed to close the gap between the prosperous and less prosperous members of New Zealand’s society, emphasising the need for social cohesion and policies that provide benefits to all. The current absence of a national vision is discussed, and a proposed vision for New Zealand’s future is presented, embracing both social and economic considerations, and taking into account Governments stated vision. It is suggested that in the absence of an existing vision and consensus on the parameters that New Zealanders deem most appropriate to quantify their comparative prosperity, it is premature to present prescribed performance goals. Nevertheless, candidate outcomes for a vision of New Zealand are presented. As prelude to the debate, issues surrounding personal perspectives on the relative priority afforded to the economy, the environment, and societal factors are revisited. Recognising the intimate relationship between the knowledge society and global trade in the internet era, the growing debate surrounding emerging aspects of globalisation are reviewed. Finally, a suite of candidate strategies for sustainable economic development is formulated. It is emphasised that the validity of these strategies is less important than their success in provoking thought and dialogue on issues currently facing New Zealand, and how as a nation we will retain or elevate our relative level of prosperity. The central pillar of the strategy set is the development of a balanced scorecard for the nation, capturing the dimensions of growth economy, talent nation, knowledge society, cohesive community and healthy environment. For each dimension a readily quantifiable performance parameter and recommended performance target are provided. Extending from this scorecard, a strategy for public policy transformation to create a knowledge economy is presented. It is proposed that the key imperatives are for Government to reduce the bureaucracy, transform the business environment, and assemble a national economic development agency. In support of this public policy transformation, it is recognised that New Zealand businesses must transform themselves in order to effectively participate in the knowledge economy. Imperatives for change include the need to celebrate business success, better develop and exploit a national brand, focus on growth-oriented talent management, participate in solving New Zealand’s structural problems, change the product/service mix, lift the focus on innovation, make greater use of niche markets, economic development zones, and cluster, and participate in new capital formation.