Month: December 2014

Stock markets used to be more buoyant just before Christmas, but that effect has been in decline in most capital markets – except for New Zealand.

In late 2009, Greece started the eurozone crisis. Five years later, the country’s problems are still large enough to trigger the next big eurozone disaster.

New Zealand’s future prosperity depends on the degree to which public opinion will support productivity-enhancing reforms and on the quality of political leadership in building constituencies for reform and implementing acceptable reforms. The same can be said about Australia, where reforms are much more urgent now.

New Zealand proves that reforms, even in mature democracies, are still possible. They should be possible in Australia as well where they are much needed. For any political leaders wishing to embark on a process of economic reform, whether in Australia or in Europe, a look at New Zealand may well be inspirational.

Do today’s politicians have the courage to make hard choices? Or has the furious pace of modern politics put an end to the age of reform? While Australia has been avoiding difficult decisions, the New Zealanders have been silently forging ahead.

Ultimately, Australia’s future prosperity depends on Abbott’s succeeding in just that. The adoption of the New Zealand method of quiet, incremental radicalism may be Australia’s best hope of rediscovering the art of reform.