New Zealand In My Eyes

Posted: January 27th, 2012 | Author: | Filed under: Business, Thinking Out Loud, Web/Tech | Tags: , , , , , , , , | 8 Comments »

I love New Zealand.

I’ve lived here for about half my life. I was born in Washington DC, but moved before I can remember (and I’m not entitled to US citizenship). Since then, I’ve also lived in the Cook Islands, the Philippines, and Spain. I’m lucky in that I’ve seen enough of the world to know what makes New Zealand so great, and also what holds us back.

Whenever I’m overseas, I’ve always felt as though I’m a representative of the entire country. At the schools I’ve been to in other countries, I’ve always been the sole New Zealander (and these have been big schools). Everyone has known me as “the Kiwi”, and I’ve always been proud when called that.

Growing up as a representative of New Zealand – and being lucky enough to know what that means – has given me a truly huge respect for this country. Most of what people say is correct. We are a bloody inventive bunch. We’ve got values and a heart. We are friendly and happy. We have a stable and uncorrupt government, no matter who’s in power and what anyone says. And we’re lucky enough to have an abundance of the colours blue and green – some of the best and most beautiful natural resources in the world.

Going forward, it is of utmost importance to me that New Zealand not only remain relevant in the world, but emerges as a clear leader in the world.

It should be clear to everyone by now that the world is in a rough spot at the moment. Both Europe and America – long the leaders of the world – are clearly on unsustainable courses. Power is shifting. New leaders will emerge over the next decade. China is clearly one, but there is room for others.

I’m writing this post right now because: 1. New Zealand is heading in entirely the wrong direction and will decline in power and wealth over the next decades, and 2. I want New Zealand to be a wealthy world leader.

There are people far more experienced than me talking about these things. Sir Paul Callaghan explains why we’re going to become poorer and more irrelevant on our current course. Derek Handley shows us an alternative path, and inspires us to take action. Andy Hamilton tells us about the role of smart enterprises in a brighter New Zealand future.

New Zealand currently has two key sources of value that give us our place in the world: tourism and dairy. Let’s examine these going forward, drawing on the insights and statistics of Sir Paul Callaghan.

New Zealand has 1.3 million FTE (full-time equivalents, essentially the number of jobs available). We also have a per capita GDP of approximately $40,000. In order to maintain our current GDP of approx. $125billion, we need a GDP of $120,000 per job. Tourism in New Zealand produces around $80,000 per job. That’s two-thirds of the per-job GDP we need to sustain our current GDP, which means the more tourism we export, the poorer we become. We are immediately doomed if we at all try to increase tourism, which is what a large majority of people currently seem intent on doing.

Dairy, in contrast, produces $350,000 per job. Sir Paul Callaghan says it succinctly – “Without dairy, we would be desperately poor”. However, dairy is finite in capacity. We only have so much land to farm on, and we’re not too far off its capacity.

I’ll repeat: the current course that New Zealand is on will not allow us to even sustain our current GDP, let alone grow.

Countries like Singapore and Hong Kong didn’t grow through their natural resources (they don’t have any). And remember, thirty years ago New Zealand was providing aid to Singapore. Now they both have GDPs twice as large as ours. New Zealand will never become relevant in the world, as Singapore and Hong Kong are, if we continue to focus on growth through our natural resources.

Throughout New Zealand’s history, our key weakness has been our physical distance from the rest of the world. It costs huge amounts and takes a long time to export to other countries. It takes ages to travel anywhere. We’ve actually done remarkably well exporting dairy and tourism, considering this.

In the twenty-first century, New Zealand’s physical distance from the rest of the world became a competitive advantage. Well, it would have, if we’d pursued other sources of growth.

The Internet. You’ve heard it before. It breaks down physical barriers. That’s what it does best. No longer do we write physical letters, or need to travel across the world to see people. No longer do books and newspapers need to be printed and sent here. No longer is New Zealand restricted to growth through bringing people to the country or sending goods out.

The Internet is the biggest opportunity New Zealand has ever had, and ever will have. It allows us to achieve growth and sell products at absolutely no additional cost to what it costs other countries to produce. We can reach the rest of the world in milliseconds, compared to the previous days. Furthermore, our physical distance from the rest of the world becomes a competitive advantage to us because the smartest people in the world will want to come and live and work in a beautiful, pristine island.

And here New Zealand is building a national cycling track to encourage tourism, destroying areas of forestry to turn it into farming land, and then selling great chunks of our land to the Chinese.

The stars are aligned for us. Global power is shifting at the same time that the Internet gives us another path to growth. I refuse to let my country miss the biggest opportunity it will ever have. I refuse to let New Zealand become poor and irrelevant, when it could become a rich world leader.

This post marks my commitment to doing whatever I possibly can to create a rich and powerful New Zealand. This will be a core tenet of my life.

Watch Sir Paul Callaghan and Derek Handley’s talks. Follow Derek’s advice on what you can do right now. Think about the New Zealand that you want and how we might get there.

To finish, I’ll quote Derek, as he says it best:

“As we continue through the twenty-first century, New Zealand can choose to be an idle bystander, or it can choose to be a shaper of this century. The former path is a path to failure and irrelevance as a country – and those failures as a collective will cast a long black shadow over the Land of the Long White Cloud for many, many years to come”.