New Zealand Reforms Economy, but Electorate Shows Discontent

By Catherine Foster, writer of The Christian Science Monitor | The Christian Science Monitor, November 1, 1993 | Go to article overview

New Zealand Reforms Economy, but Electorate Shows Discontent


Catherine Foster, writer of The Christian Science Monitor, The Christian Science Monitor


IN the last nine years, New Zealand has undergone a social experiment that has been watched closely around the world.

This small country has been transformed from one of the most regulated and protected economies to one of the least. Its one-time double-digit inflation rate has been brought to under 2 percent, the lowest in the Organization for Economic Cooperation and Development. And the economy is expected to grow at 2.9 percent in 1993-94, better than the United States, Japan, and Europe.

But while the New Zealand economy has made a remarkable turnaround, voters here have signaled that they do not care for the way it was done.

In the general election Nov. 6, voters gave the ruling National Party the most seats but no clear majority. Two new minor parties have been given greater powers. And the true tally will not be known for 10 days when 200,000 special votes will be counted.

In the wake of political uncertainty, the share market initially lost 6 percent of its market capitalization, one of the steepest falls since the 1987 crash. The New Zealand dollar weakened against the US dollar. Bond yields jumped between .05 and 1 percent.

A newly elected Labour government began the changes in 1984, floating the dollar, relaxing investment rules, shrinking tariffs, and selling state-owned assets. Tax rates dropped from 66 percent to 33 percent; a 10 percent goods-and-services tax was instituted and later increased to 12.5 percent. The Reserve Bank was given statutory independence and a contract to keep inflation under 2 percent or face sanctions.

Labour's sudden and radical changes proved politically disastrous. The unemployment rate shot up to 10.5 percent. When a bruised and angry electorate dumped the Labour party in 1990, the more conservative Nationals went even further, introducing enterprise bargaining, cutting welfare benefits, and instituting user fees for formerly free hospitals and universities. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

New Zealand Reforms Economy, but Electorate Shows Discontent
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.