Friday, 11 June 2010

Can New Zealand match Australia?

The poor old New Zealanders work among the longest hours in the OECD but have relatively low pay.
To address this, they naturally compare themselves witrh their nearest neighbours and matching Australian levels of productivity has become a kind of holy grail.

Australia has the advantage, however, of vast mineral wealth.

New Zealand, therefore, has to think and act smarter - taking advantage of its own advantages. Perhaps prime amongst these is New Zealand's smaller size.  This should give it the flexibility it needs to to transform the economy, using their own impressive natural and human resources.

Of course, only time will tell whether they can pull this off.

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