NEW ZEALAND

New Zealand's democratic institutions are strong. Elections are fair and inclusive, civil rights well-protected, and corruption very rare.

The national print media's small ownership base may subtly constrain the range of opinions expressed. This may affect citizens' access to information.

Sound economic policies have reduced unemployment and enhanced competitiveness.

However, New Zealand's small size and geographical isolation create unavoidable disincentives to investment.

A shortage of skilled and professional labor is growing worse.

The tax system is simple and transparent, bolstering the country's competitive position and generating sufficient revenue. Budgetary policies are sustainable.

New Zealand's recent social policy reforms have focused on children with families, and on pushing unemployed individuals back to work.

Socioeconomic disparities do exist, but do not dominate society. Health care has undergone substantial change in recent years, but problems with efficiency and equity remain.

The tax-based pension system prevents senior citizen poverty. The government has created a fund to help defray future retirees' pensions.

New Zealand's geopolitical situation makes it an unlikely target for terrorist or other external threats.

The country is an active partner in international strategic defense arrangements and actively works toward peaceful development of the Pacific Islands region.

Integration initiatives are widely considered to be successful, especially for European and highly qualified immigrants.

New Zealand's environmental performance is mixed, and its economic growth hampered by geographic hurdles.

Some pollutants have been reduced, but agricultural runoff, water quality and conservation remain problematic.

Relatively little R&D takes place, partly due to the small number of large, international firms.

High-quality education cuts across social barriers.

New Zealand's government has no central strategic planning unit. However, the Department of the Prime Minister and Cabinet provides high-quality impartial advice and coordinates government activity.

All policy proposals that result in government bills or statutory regulations must be accompanied by a regulatory impact statement.

The country has a strong tradition of broad consultation with interest groups and individuals. Strict cabinet rules keep government communication consistent.

New Zealand's national government is well situated to achieve its own policy objectives, with 84.4 percent of government-sponsored bills adopted by parliament during the review period.

Little veto power exists, since the parliament is unicameral, governor-generals have never used their power to reject bills and there is no constitutional court able to declare bills unconstitutional.

New Zealand is not part of any supranational governance structures such as the European Union, and therefore has no immediate requirement to respond to developments from such organizations.

The country actively pushes for trade liberalization on all levels and is regarded as a role model for political and economic reforms among OECD countries.

Governments in New Zealand have proved to be open to and capable of self-monitoring and institutional reform.

Recent reforms have focused less on structural changes than on performance-impeding issues such as organizational culture.

Citizens are relatively well-informed on policy issues, although even publicly owned TV stations offer little in-depth policy analysis.

Parliamentary committees have strong executive oversight powers. The Office of the Ombudsmen is one of the world's oldest.

Government traditionally consults with societal groups, but their positions are not automatically reflected in policies.