NEW ZEALAND

At rank 4, New Zealand clearly outperforms neighboring Australia in all relevant categories (-1 rank relative to SGI 2009).

As an established democracy featuring a strong and globally integrated economy, New Zealand upholds high standards of social inclusion and equity.

More sustainable strategies need to be developed in environmental policy. Shortcomings have also been identified in research and innovation policies.

The National-led minority government was succeeded by a Labor-led minority government in November 2008. To the surprise of many, the transition was dominated by continuity rather than adversarial politics.

Ranked 4th, the quality of New Zealand’s democracy remains strong and exemplary.

The country is at the forefront of civil and political rights protection. Cases of discrimination are rare, but a disproportionate share of Maori among prisoners call equal treatment into question.

The media are largely free. However, Australian companies dominate the New Zealand’s media market.

Legal certainty is ensured by a mix of conventions, statute law and common law. Independent institutions ensure that New Zealand is one of the least corrupt countries in the world.

Despite its remoteness, New Zealand is a globally well-integrated economy with a constantly high rating for its economic policy (rank 3).

Successful free-market reforms in the 1980s and 1990s continue to support the economy’s health, although productivity gains have not met expectations.

The employment rate is comparatively high, and the effects of the global crisis were less severe than in most other OECD countries. However, unemployment among women and the Maori population is significantly above average.

Fiscal policy remains sustainable even though the financial crisis ended 14 years of surplus. The new National government cut taxes so as to increase competitiveness.

At rank 2, New Zealand’s social affairs rating reflects an equitable society responding to new challenges.

The country’s generally high-quality health care system is confronted by rising expectations and cost pressures.

Gender equality is quite high. Labor market participation by women is substantial, and gender differences in earned incomes have become relatively narrow. Generous family spending has encouraged high birth rates.

The pension system faces demographic challenges. One of the latest and most popular innovations in this area is KiwiSaver, a publicly subsidized, voluntary private pension program.

Integration of migrants is very successful, but more needs to be done for the education of Maori and Pacific Island populations.

Thanks to its remote geopolitical situation and moderate involvement in controversial overseas military operations, New Zealand is unlikely to become a target of transnational terrorism. Strategic defense arrangements with Australia and NATO are in place. Beyond that, New Zealand needs to develop even stronger links with its neighbors in the Pacific region.

The National-led government increased expenditures for police, criminal justice and prison services in order to reverse the trend of soaring numbers of reported criminal offenses.

With a mixed but generally positive record on resource sustainability, New Zealand remains at rank 7.

Environmental policy has yet to adopt a wholly sustainable line. Severe problems with water management persist. On the positive side, an emissions trading scheme was implemented, with an eye to the country’s particular vulnerability to the consequences of climate change.

Research and innovation policies are marked by significant weaknesses. Incentives for enterprise investment in R&D are regarded as insufficient. The outgoing and new governments each made efforts to remedy these shortcomings, however.

Impressive PISA results notwithstanding, indicators of participation in secondary and tertiary education are relatively low. That said, student numbers have risen considerably in recent years.

At position 5, New Zealand continues to demonstrate above-average management performance.

The government has improved its steering capability by declaring contracts between ministers and chief executives mandatory, seeking more expert advice, and streamlining the RIA process.

Policies continue to be implemented effectively, even though minority coalitions persist.

The leadership has proven adaptable to new situations both domestically and internationally. But radical reforms are difficult to achieve due to the minority status of government.

Accountability toward committees, citizens and civil society is high. The oversight functions of parliament and the media are also relatively strong.

Gaining several places to fall at rank 3, New Zealand is near the OECD’s top in terms of effective steering capability.

New public management techniques require contracts to be negotiated between ministers and departmental chief executives. The importance of scholarly advice has increased.

The prime minister’s 14-member policy advisory group focuses on important bills, necessitating substantial interagency coordination on other issues.

In late 2009, the new National government ordered that detailed RIAs must be performed for any policy activity that may lead to draft legislation.

Consultation with interest groups and citizens is traditionally robust. Coherent communication has been somewhat difficult in recent minority coalition governments.

At rank 3, New Zealand’s policy implementation capacity remains among the OECD’s best, despite slight declines relative to the SGI 2009.

Minority coalition governments have been relatively successful in implementing their agenda. The National Party-led coalition started its term with a “100-day action plan,” which was implemented on time.

New Zealand has a strong tradition of collective cabinet responsibility. All contracts between the cabinet and line ministries and ministers and departmental chief executives must be grounded in broader government policy.

New Zealand is a highly centralized country. Local governments raise only about 5% of total tax revenues. However, local autonomy in setting tax rates and bases is greater than in any other OECD country.

At rank 4, New Zealand continues to hold a position near the OECD’s top in terms of institutional learning.

In previous years, the country has drastically restructured the public sector and reformed policy-making. Today’s multiparty system and minority coalition governments make radical reform much more difficult to achieve.

Despite its isolated geopolitical position, the country participates proactively in many international organizations, as well as in the international coordination of policies concerning the Antarctic Region, disarmament and proliferation, environmental protection, and human rights.

Following the change to a mixed-member proportional representation system in the 1990s, institutional arrangements have been regularly and effectively monitored.

At rank 7, executive accountability in New Zealand is comparatively high by OECD standards.

According to opinion polls, 69% of citizens feel they have a good or very good understanding of political issues. However, interest in politics has declined.

Select committees have the right to request government documents, and can summon ministers or experts.

Not all media organizations produce high-quality information, but TV One and Radio New Zealand provide excellent analysis of government decisions.

The two major parties, Labor and National, regularly produce detailed election programs with coherent policy proposals. There are few well-organized and well-staffed interest groups, but societal consultation has a long tradition.