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Making New Zealand's economic growth more inclusive

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  • David Carey

    (OECD)

Abstract

New Zealand generally performs well in terms of economic and social inclusion. It has high employment rates, and education and health-care systems work well for most. However, some New Zealanders are stuck on low incomes and face material deprivation and multiple barriers to economic and social participation. The ranks of those falling behind increased in the wake of the economic reforms in the late 1980s and early 1990s, which succeeded in halting the decline in GDP per capita relative to the OECD average but contributed to large increases in income inequality and poverty that have only been partially reversed since then. These developments have been aggravated by the rising burden of housing costs on low-income households. Māori, Pasifika and low-income households have also experienced slower rates of improvement in many health and education results. NZ governments have made improving outcomes for disadvantaged groups a top priority in recent years. Reforms are being made to facilitate the transition of welfare beneficiaries into work, increase the supply of affordable and social housing and enhance health and education outcomes for disadvantaged groups. These reforms go in the right direction and, in many cases, would be more effective still if complemented by other reforms. Rendre la croissance économique plus inclusive en Nouvelle-Zélande Dans l’ensemble, la Nouvelle-Zélande obtient de bons résultats en matière d’intégration économique et sociale. Le taux d’emploi est élevé et, globalement, les systèmes d’éducation et de santé fonctionnent correctement. Cependant, la situation reste inchangée pour certains Néo-zélandais à faible revenu qui demeurent confrontés à des difficultés matérielles et à de nombreux obstacles à une pleine participation à la vie économique et sociale. Le nombre de foyers ayant perdu du terrain a augmenté à la suite des réformes économiques de la fin des années 80 et du début des années 90, qui ont certes permis d’arrêter le déclin du PIB par habitant par rapport à la moyenne de l’OCDE, mais au prix d’un creusement marqué des inégalités de revenu et d’une hausse de la pauvreté qui n’ont pas été entièrement corrigés depuis. Dans ce contexte, l’augmentation de la charge des coûts du logement pour les ménages à faible revenu a constitué un facteur aggravant. En outre, les ménages néo-zélandais défavorisés – les pauvres, les Maoris et les Insulaires du Pacifique – ont connu des progrès plus maigres à bien des égards en matière de santé et d’éducation. Ces dernières années, l’amélioration de la situation des groupes défavorisés figurait en tête des priorités des gouvernements néo-zélandais. Des réformes ont été menées à bien pour faciliter la transition vers le monde du travail des bénéficiaires de prestations sociales, pour accroître l’offre de logements sociaux abordables, pour améliorer les retombées positives, en matière de santé et d’éducation, pour les populations défavorisées. Ces réformes, qui vont dans la bonne direction, auraient bien souvent une efficacité plus grande si des réformes complémentaires venaient les compléter.

Suggested Citation

  • David Carey, 2015. "Making New Zealand's economic growth more inclusive," OECD Economics Department Working Papers 1256, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1256-en
    DOI: 10.1787/5jrw21ntclwc-en
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    Cited by:

    1. Elisabeth Christen & Sandra Bilek-Steindl & Christian Glocker & Harald Oberhofer, 2017. "Österreich 2025 – Österreichs Wettbewerbsposition und Exportpotentiale auf ausgewählten Zukunftsmärkten," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(1), pages 83-95, January.

    More about this item

    Keywords

    education; health outcomes; housing; income inequality; poverty;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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