Month: March 2010

Australians worried about their productivity performance in international rankings may relax a little. There is not much in the German experience that they should wish to copy.

After 13 years of Mixed Member Proportional (MMP) representation, Prime Minister John Key has said it is time to ‘kick the tyres’ and see how much support the system enjoys. New Zealand will hold a referendum on the electoral system coinciding with the next election, which may well be a close contest. With this referendum looming, it is both desirable and necessary to revisit New Zealand’s electoral system, its peculiarities, and its history. Beyond that, this is also the time to consider alternatives to MMP.

MMP has, in some ways, proved to be the worst of all worlds. It was meant to provide consensual decision-making, prevent an outright parliamentary majority pulling away from the will of voters and, thus, make Parliament representative. It was also meant to provide different local and national representation, and the proportional element was supposed to increase diversity within Parliament.

The Europeans are ignoring both the opportunities and dangers of China at their peril. Closing their eyes to the Chinese awakening will not put the Chinese dragon back to sleep.

Considering all evidence, perhaps being a leftie is not such a clever idea after all. That is the conclusion of a number of sociological studies.

Abbott’s scheme, while meant to create a more family friendly society, will only enlarge the welfare state and increase taxes. But looking at Japan, Canada or Germany we can see that imposing bigger tax burdens and increasing the welfare state are not conducive to lifting either productivity or fertility.

The stakes for Britain could hardly be higher. A return to the pre-crisis times of ‘Cool Britannia’, let alone Elgar’s Land of Hope and Glory is nowhere in sight. And instead of only printing Adam Smith’s portrait on their bank notes, British policy-makers should rather have read the great master.

IN his masterpiece, The Road to Serfdom, Friedrich Hayek considered the follies of mistaken policies to conclude: “We shall not grow wiser before we learn that much that we have done was very foolish.” If only Kevin Rudd heeded this advice, his much-televised apologies for the government’s insulation fiasco and other policy blunders would be more credible.