New Zealand's Remarkable Reforms
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New Zealand's economy has revived in the last few years, following ...one of the most remarkable economic liberalisations in modern times' since 1984. There is little public enthusiasm for reversing the reforms. once one of the most regulated OECD economies, New Zealand is now one of the least regulated. Unemployment has recently fallen sharply. The estimated sustainable growth rate of real GDP is now 3-3half per cent. The transformation of New Zealand - from a protectionist, regulated society with 'cradle-to-grave' welfare to an open, market-based economy operating under the rule of law - has...
New Zealand's economy has revived in the last few years, following ...one of the most remarkable economic liberalisations in modern times' since 1984. There is little public enthusiasm for reversing the reforms. once one of the most regulated OECD economies, New Zealand is now one of the least regulated. Unemployment has recently fallen sharply. The estimated sustainable growth rate of real GDP is now 3-3half per cent. The transformation of New Zealand - from a protectionist, regulated society with 'cradle-to-grave' welfare to an open, market-based economy operating under the rule of law - has a 'Hayekian flavour'. Under the guidance of Roger (now Sir Roger) Douglas, New Zealand adopted a 'big bang' approach to reform, though the pace of reform slackened from a time in the late 1980s. Micro-economic reforms included removal of controls on wages, prices, and foreign exchange and floating of the New Zealand dollar. Import quotas have been removed and tariffs reduced. Agricultural and industrial subsidies have virtually disappeared.
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