Heading 1New Zealand is a great place to live. The economy is in good steady and the country is stable. However, a small, open economy at the far end of the world needs to be ahead of the game to create shared prosperity and opportunity for its people. There are grounds for much optimism. New Zealand has come through the Global Financial Crisis well, and is entering into a period of strong growth. The outlook, with rapidly-growing Asia on our doorstep, is bright. But policy changes are required to make sure New Zealanders’ living standard improve in a world of demographic and technological changes and ongoing globalization. SWOT Analysis is about identifying an organizations internal strengths and weaknesses and outdoor opportunity and threats.
Robust Institution and Independence.
ROBUST INSTITUTION AND INDEPENDENCE
This are the laying-rock of New Zealand’s economic accomplishment- upholding perfect institutions will support economic prosperity. New Zealand is one of the easiest place to do business in the World and has one of the least corrupt public services. These honors are a reflection of Robust institutions. The institution is used to the soft infrastructure of the economy: the laws and regulation, system of the government, the judiciary, the democratic system and the public service to name a few. Together they form the flexible structure of the economy, within which people work. New Zealand systems are among the World’s best, in terms of welfare and safety for unemployed, for low income earners and people who are unwell for as disabilities. Another strength of New Zealand is its independent streak in policy making. This has been particularly true of its foreign policy. For examples, New Zealand’s non-nuclear position, despite the risk with uncertainty with the United States (US), and its unwillingness to endorse the war in Iraq. New Zealand and the United States have solid economic and political linkages despite differences in foreign policy. For its few population in comparison to other states, New Zealand is also an important voice on various supra-national bodies, in the World Trade Organization (WTO) and United Nation (UN). It is active in the trade arena, committed to securing Free Trade Agreements to expand its area of markets and its economic engagement with the world. An improving fiscal position, low debts, good institutions give New Zealand a very strong competitive global position.
New Zealand is blessed with plentiful natural resources in terms of land and water with its climate. It is well match for comfortable lifestyle and a range of industries. The world is short of land and water, meaning New Zealand has a strong competitive advantage, in managing these natural resources, we need to balance economic imperative with sustainability. New Zealand’s Exclusive Economic Zone covers not just the country’s landmass, but also a large area of the surrounding water. It applies to surveying, cable laying, the installation of oil and all positive future assumption. The Quota Management System is another regulatory effort to manage water resources sustainably. New Zealand exports over $1.2 billion of seafood per year- sustainable fishing through good regulation is an integral part of managing a precious resource responsibly. Dairy, New Zealand’s largest export commodity, is also independent on plentiful of land and water. More and more land is being under dairy farming well, at the same time farming gets productive.
Small is agile and flexible. New Zealand with a few population of people around 0.6% of the global population, is a small economy. While lack of scale can be both have weakness and strength. New Zealand used its size to its advantage by being flexible in its policies and economy. The relatively policy making in New Zealand is due to domestic and international factors. Domestically, policy making can be agile because bureaucracies are smaller and the hierarchy is flatter, allowing better communication. Internationally, our actions tend to have limited effects and are less likely to draw attention. New Zealand also has relatively open immigration policies. We welcome skilled migrants and international students. While current immigration policies are generally working well, an ageing population might call for increased immigration to boost the shrinking labor force. This will a clear stance on the role of immigration policy in meeting broader population, social and economic objectives, and pro-active extenuation of risks. Economic policy, too, is adaptable, for example around product and labor market regulation. Various surveys and studies have shown New Zealand to be an easy place to do business (New Zealand currently ranks third in the World Bank ease of doing business index, behind Singapore and Hong Kong).
A changing world needs more capable people. New Zealand suffers from a lack of skills and capabilities. This visible in a number of arenas, including management, technical skills and policy making. Our markets are not deep enough to ensure smooth matching of needs and offerings. In large markets, both employers and employees have many options to choose from, but New Zealand sometimes suffers from a lack of scale. For example, an IT outfit in Auckland maybe world class, but may still find it hard to attract skilled engineers without an ecosystem of related and competing firms. Many New Zealand IT firms find it difficult to attract staff, despite New Zealand being a great place to live. What an IT engineer can access in terms of opportunities and income is very different between Auckland and the Silicon Valley. In what reason, New Zealand is short of scientists, engineers, and other technical professionals. Demand for these skills is increasing not just in New Zealand, but across the world.
Policy innovation is not keeping up with economic change. New Zealand has been held in recent decades as an example for many people consider to be continuous reform. In a fast-changing global economy, slow policy innovation can amount to inactivity. A recent example would be the New Zealand Green Party’s adoption of the Green Investment Bank concept from the UK, which is designed to increase investment in green energy technology. While there is in green energy technology. New Zealand already generates 84% of its electricity from renewable sources, and much of the recent expansion in energy capacity has been in the renewables segment.
New Zealand has aligned itself to several multifaceted institutions and processes. So far, this approach has served New Zealand well, resulting in strong representation in supra-national agencies like the WTO and UN. New Zealand remains committed to various multifaceted approaches to trade and to economic and environmental co-operation. Good policy that both meets global best practice and that is fit for purpose for New Zealand is essential for economic success. Slipping policy innovation is a weakness and an opportunity for improvement.
Large Open Spaces.
New Zealand has traditionally been thought of as a small country at the far end of the world. Geography describes the domination of distance. But that view is increasingly outdated. The rise of Asia means that the distance to markets is shrinking rapidly. Over the past few years, the distance travelled by New Zealand’s top 10 exports has halved. The McKinsey Global Institute has published a map of the world tracking the journey of the Centre of the global economy since AD. According to the McKinsey map, the Centre of the global economy has been economy has been shifting years by years. Another advantage of New Zealand’s geographical location is the protection afforded by isolation. New Zealand is relatively well insulated from biosecurity threats and has a fairly low exposure to health threats.
New Zealand’s income per capita was up among the top in the world in the 19th century. It was higher than the US, and broadly kept pace until the 20th century. Over the past years’ economic growth in other terms of the world has been faster. New Zealand now ranks 30th in income per capita behind Australia around a 30% gap. Global connection is difficult for New Zealand, because the physical location are sets up of the supply chain in the end, value is shared across phases. Good connection with diverse phases of supply chain, in terms of technology and investment, will increase the important. The New Zealand economy is rising, while in comparison with other states, are not, counting Australia. This time of economic out-performance shows an opportunity to invest in policies that influence the flow of foundation capital and improve international links.
LARGE OPEN SPACES.
Opportunities to expand Domestic Market. New Zealand struggles to grow its economy in terms of their small population and control location. Somehow, their little to be act in order to swap location, but however the population can rise over time. New Zealand has untouched natural resources for example oil, gas etc. with this is control by the Ministry of Business, Innovation & Employment (MBIE) which they recognize many opportunities concerning successful managing between economy is strictly importance to New Zealanders wellbeing.
Geographic hazards are low probability but can have a massive impact. New Zealand geology and geography show the events that may low in probability and somehow that may cause humungous damage. The main threat is from natural disasters, for example like earthquakes, tsunamis and so on. Many of New Zealanders are in low standard of living areas in terms of climate change and sea level rises.
Greying risks and widening gaps. Getting grown is a fact of life. High percentage of population is going to age in years. The baby-groomer generation a large unit is nearing retiring. We are also living longer and having few children with somehow deals with ageing for region earlier which might have led to moving away of young generation and regions enticing retirement. Health is a thorny issue. It is expensive, in society and somehow, we do not want pedestrians to be dispossessed in terms to economic limitations.
New Zealand is a small economy operating in a large world. There are congregation of links through trades, migration and capital. So, what happens in the global economy matters to New Zealand hence the purpose we have certain control of it. International threats are often recognized by high level risk and somehow does not accept export modification in goods we trade and the destination of trade to. Aotearoa is expressed to risk on focusing on global trade. Exports increase on diverse commodities in only a few countries. And somehow geographic segregation is condensed by the internet in which it connects New Zealand to the World with this means New Zealand is weak in cyber threats. This threat can harm any unit from any location anywhere in the world. For example, virus attacks on important standards and hacking personal data’s and spying. The average cost of data breach is about NZ$5 million and so on, according to one study. So, reducing cyber risk is a hard problem of cyber security breaches for any organization in the global economy.
Community benefits from Globalization of business.With the community of Charted Accountants New Zealand Future Inc