Paul Killerby

Killerby, P. and Smith, J. (2001) "From competition to cohesion: The changing focus of economic development in New Zealand", Australasian Journal of Regional Science Vol 7, No. 3, pp 333-352.

Abstract

Governmental power in New Zealand has historically been highly centralised, and regional economic development has not been a high priority. Post-1984 neo-liberal reforms resulted in a major reorganisation of regional and sub-regional institutions in the absence of an over-riding regional development framework. Over the same period, economic performance in rural areas has been relatively poor. The result is a fragmented regional governance environment coupled with significant socio-economic disparities. Since 1999, central government has committed itself to a regional development programme involving modest levels of intervention, through a partnership approach with local government, community trusts, Maori organisations and the business community. This paper describes the transition from central government's traditionally top-down approach to governance and economic policy, through its post-1984 policies of decentralisation and non-intervention, to its recent bottom-up approach to regional development. In so doing, it highlights an intermittent focus on regional development planning in response to changing political imperatives. The paper argues that central government's new Regional Partnership Programme has significant potential for raising New Zealand's long-term rate of economic growth, based on the fostering of local commitment to development activities and initiatives. Implications are discussed in the context of international evidence on the link between social capital and economic performance.

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