In its recently released Building Innovation progress report, the government rightly recognises that innovation is critical for improving New Zealand’s global competitiveness. Unfortunately, innovation remains the country’s weakest area, according to the Global Competitiveness Report 2012–13 released this week by the World Economic Forum (WEF). Read more
When the government announced recently that it intended to lift exports from 30% to 40% of GDP by 2025, it was difficult not to roll your eyes. It was just another in a long series of targets whose utility was not explained, is unlikely to be reached, and doesn’t address underlying economic issues. Read more
I am in Prague attending the general meeting of the Mont Pelerin Society, a network of distinguished liberal academics and intellectuals. One of the best speeches at the conference, however, was delivered by a businessman with no academic affiliation – and contained an implicit warning to countries like New Zealand. Read more
Founded in 1947 by distinguished economists such as Friedrich Hayek, Milton Friedman and Ludwig von Mises, the Mont Pelerin Society has long been a forum for critics of big government, defenders of the free market and believers in individual liberty. As the society’s general meeting in currently being held in Prague (hosted by Vaclav Klaus, the fiercely euro sceptical Czech president), it was clear that the euro crisis would be a dominant theme during the week-long conference. Read more
There is a great myth that New Zealand is open for business and is a very easy place for anyone to invest. Little could be further from the truth – according to the OECD, New Zealand is actually performing very poorly compared to other countries in the race to attract overseas capital. Read more
US Secretary of State Hillary Clinton jets into Rarotonga today to attend the Post-Forum Dialogue of the 43rd Pacific Islands Forum. The leaders of the 15 countries attending the forum – including Prime Minister John Key and Australian Prime Minister Julia Gillard – have been discussing a number of environmental, security and economic issues, with a particular focus on renewable energy, development assistance, and climate change. Read more
Last week, I attended an annual public policy conference organised by the Australian think tank The Centre for Independent Studies on topics that ranged from foreign affairs to global economics. However, one of the sessions – traditionally reserved for the latest developments in science and engineering – was most humbling, particularly for the economists attending. Read more
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Have you ever heard of Alexander Dobrindt? He must be a member of Superheroes Anonymous because the provincial politician has just taken on the "most powerful woman in the world”, Angela Merkel. Read more
Regulation is a means to an end, not an end in itself. Some regulation is necessary as it can either set out the rules of the game in society or attempt to influence people to make better choices. Read more
Population growth is always an issue of intense debate, bouncing between a nation’s acceptance (and need) for migrants and an anti-foreigner sentiment. New Zealand and Australia are both typical and similar in this regard – both have relatively low populations for their size. Read more
New Zealand’s leaky building saga has shaken public confidence in both the building industry and the regulatory competence of government. The growth of the Certified Builders Association of New Zealand (CBANZ) is an example of a market response to the problem. Read more
After three years of the euro crisis, and despite numerous summits, various acronymed bailouts, and countless solemn pledges to save Europe’s common currency, we are nowhere closer to a solution than at the outset. The euro’s troubles have every chance of joining poverty in Sub-Saharan Africa, violence in the Middle East and North Korea’s nuclear program as a standard feature of the world in which we live: unpleasant, dangerous and yet seemingly unalterable. Read more
Economics students generally learn how to deal with recessions in their first semester. To cushion the economy in a downturn and speed up the recovery, students are taught to cut interest rates and provide fiscal stimulus. Read more
Global food security is an increasing challenge. A growing middle class in developing countries are demanding more protein. Read more