The challenge of securing durable reductions in child poverty in New Zealand

This article examines the causes of child poverty in New Zealand and how child poverty rates might be reduced.New Zealand has tolerated significant levels of relative child poverty for more than two decades. For a country which once prided itself on being comparatively egalitarian and, more particularly, on being a great place to bring up children, this is surprising. It is also concerning. Child poverty imposes many long-term costs. This is especially the case, according to the available evidence, when poverty occurs during early childhood and when it is severe and/or persistent. These costs afflict not only the children directly exposed to poverty (e.g. in the form of lower educational achievement, reduced lifetime earnings and poorer health outcomes), but also society as a whole. The wider social and economic costs include increased health care costs, lower productivity growth and higher rates of criminal offending. In short, the empirical evidence suggests that substantial rates of child poverty reduce a nation’s prosperity. Hence, on economic grounds alone there is a case for seeking lower child poverty rates. Other considerations, such as the pursuit of fair opportunities for all children, make such a goal even more compelling

The role and importance of long-term fiscal planning

There is reason to hope that long-term fiscal planning can still be effective in New Zealand.IntroductionMany countries now require the regular publication of longterm fiscal projections, looking at the potential long-term costs of government spending programmes. In New Zealand, section 26N of the Public Finance Act 1989 (as amended in 2004) requires the Treasury to publish a Statement on the Long-Term Fiscal Position at least every four years. Under the act, such statements must look out at least 40 years. Their contents are the responsibility of the secretary to the Treasury (rather than the minister of finance), and the Treasury is required to use ‘its best professional judgments’ in assessing the fiscal outlook and potential risks.It is also obliged under the act to ensure that ‘all significant assumptions underlying any projections’ are included in the statement. Aside from these parameters, the act is silent on the matters to be covered, giving the Treasury considerable flexibility over the process employed to produce such documents, including the nature and extent of any consultation with external experts, the wider policy community and interested stakeholders. Since the requirement for such statements was introduced in 2004 the Treasury has published three reports. The most recent of these – Affording Our Future – was released in July 2013. Against this backdrop, this article considers:the nature of long-term fiscal planning; why long-term fiscal planning is important; why a legislative requirement for such planning is desirable; whether long-term fiscal planning actually achieves its goals; some of the uncertainties involved in long-term fiscal planning; and the potential for long-term planning in areas beyond fiscal ones

Alleviating poverty: issues and options

New Zealand was among the first countries in the world to implement a relatively comprehensive welfare state. But almost 80 years after the passage of the Social Security Act in 1938, serious social problems persist, not least significant levels of poverty – especially child poverty – and income inequality. In recent years, such problems have attracted growing public concern, as reflected in opinion polls and political debate

Global climate change policies: from Bali to Copenhagen and beyond

In early December 2007, the island of Bali in Indonesia hosted the 13th Conference of the Parties (COP13) to the United National Framework Convention on Climate Change and the 3rd Conference of the Parties serving as a Meeting of the Parties (COP/MOP3) to the Kyoto Protocol. Attended by almost 11,000 participants and observers from across the globe, Bali marked the climax of a period of unparalleled international climate change summitry (Chasek, 2007). The decisions taken at COP13 have been variously hailed as a ‘major breakthrough’ (Egenhofer, 2007) and as an utter failure – ‘the mother of all no-deals’, to quote Sunita Narain (2008) and ‘even worse than the Kyoto Protocol’ according to George Monbiot (2007

Redesigning the Welfare State: rethinking the indexation of cash and non-cash assistance

Since the beginnings of the welfare state, Aotearoa New Zealand has lacked a principled, comprehensive and consistent system for indexing social assistance to movements in consumer prices and/or wages. This deficiency applies not only to cash transfers but also to in-kind benefits. The absence of a robust and durable indexation regime is no accident. It reflects, among other things, an unwillingness of governments to determine an acceptable minimum standard of living for citizens and then protect, if not enhance, this standard over time. No doubt, the fiscal implications of a more consistent approach to indexation have loomed large in the political calculus. Yet if the current and future governments are to meet ambitious child poverty reduction targets and ensure greater distributional fairness, a new framework for indexation is essential. This article discusses the nature and purpose of indexation, the principles and other considerations that should inform the design of an indexation regime, the policy options available, and how a durable and defensible policy framework might be secured

The state, wage-fixing and labour market reform: some international perspectives

This article explores three main issues. First, it examines the changes which have occurred in the nature and scope of state intervention in pay fixing within the OECD during the past two decades. Second, it outlines the strategies which have been adopted recently by many western govern1nents to enhance wage flexibility and im.prove the operation of labour markets. Third, it critically assesses the merits of the Calmfors-Driffill thesis concerning the relationship between wage bargaining systems and macroeconomic performance. It is argued that there are good theoretical reasons as well as some strong empirical evidence to support the Calmfors-Driffill thesis, but that bargaining structures are only one of a multitude of factors which influence economic outcomes

Transforming the Economy: why a‘green recovery’ from Covid-19 is vital

The global ecological crisis poses much greater risks to humanity than Covid-19. At the same time, the pandemic provides a unique opportunity for governments to pursue a ‘greener’ and more sustainable future, for example through large-scale investments in clean energy sources, energy efficiency, waste reduction technologies, climateresilient infrastructure, regenerative agriculture and biodiversity protection. Yet, despite the urging of leading economists, ecologists and investors, measures to enhance ecological sustainability have not been prioritised in most governmental fiscal and regulatory responses to the pandemic. This article briefly summarises the nature of the current ecological crisis and, with particular reference to New Zealand, the policy measures required for an effective response. Fundamentally, a step change is needed from the current linear economy (based on finite energy sources and other non-renewable natural resources) to a more circular economy (based on renewable energy sources, the minimisation of waste and the efficient use of natural resources)

Living Within Biophysical Limits: green growth versus degrowth

Since the early 1970s there has been vigorous debate over whether global economic growth can continue more or less indefinitely on afinite planet. Central to the most recent version of this debate are the claims and counterclaims of those advocating ‘green growth’ and those advocating ‘degrowth’. This article outlines and briefly assesses the main areas of agreement and disagreement between these contending schools of thought. It is argued that humanity must live within real, non-negotiable biophysical constraints. Failure to make the required transformation of the global economy soon will ultimately undermine social progress. But what level and form of global economic activity is ultimatel

Anticipatory governance: how well is New Zealand safeguarding the future?

Good governance has many attributes. Among these are anticipating tomorrow’s problems, protecting the longterm public interest, and endeavouring to ‘future-proof’ the state (Boston et al., 2014). Sound anticipatory governance, in other words, is a critical ingredient. It is fundamental to advancing better government. But what exactly does it mean? Here are some suggestions

Experiments with Geometric Non-Linear Coupling for Analytical Validation

This study was focused on obtaining accurate experimental data for the validation of the geometrically exact beam theory from a series of experiments in which high quality surface shape and deflection data was collected. Many previous experiments have experienced issues with data collection or test articles which the researchers were unable to overcome. The test program was performed in two stages: qualification and joined-wing. The qualification stage validated the experimental procedures on simple 72 in long aluminum beams with 8 in x 0.5 in cross-sections. The joined-wing stage was the primary experiment focused on obtaining quality data for use in validation and each joined-wing had an overall length of 57 in. The fore wing was designed with a chord of 8 in and a thickness of 0.5 in; the aft wing was designed with a chord of 6 in and a thickness of 0.5 in. These dimensions were chosen so the joined-wing produced a non-linear bend-twist couple before permanent deformation. The bend-twist couple in a solid cross-section aluminum joined-wing was successfully captured with surface shape, deflection points, and strain data