New Zealand  

Workers in New Zealand command plentiful resources in the workplace, as measured by the capital stock per worker indicator, which quantifies facilities such as offices and machinery. Unemployment and inflation rates are low at 4% and 2%, respectively. Domestic savings run near the international average at 21%, and New Zealand’s interest margin of two percentage points is low, indicating that the banking sector operates at a high level of efficiency. While the country is demonstrably stable and productive, its export performance has been less than optimal, as indicated by the low ratio of export revenues to the cost of imports. Also, the country’s raw material reliance is moderately severe, ranking the country 75th in the world. Foreign direct investment is very low at 2% of GDP, illustrating one of the drawbacks of self sufficiency and independence.

With few bureaucratic hoops to jump through to start a new business, New Zealanders are free to pursue entrepreneurial opportunities. Around 65,000 new businesses were registered in 2007, placing New Zealand in the top 20 on this variable. The communications infrastructure is strong with good internet bandwidth and a high ratio of 588 secure servers per one million people. Just over half of the population owns a computer, ranking New Zealand near the global average on this measure. ICT and high-tech exports are low, and expenditure on R&D makes up just 1.2% of GDP, indicating that the country may not be investing sufficiently in innovation. While New Zealand has been slow to leverage its entrepreneurial freedom in high-tech industries, royalty receipts constitute a relatively high percentage of GDP, demonstrating that businesses are able to commercialise their intellectual property.

New Zealand is a constitutional monarchy with a parliamentary democracy, where citizens enjoy high levels of personal autonomy. The political system is characterised by strong checks and balances, with open competition among rival parties. The electoral process is characterised by free and fair elections, and the judiciary is highly independent, with New Zealand scoring as high as possible on this measure. New Zealand’s political institutions are stable: 130 years have passed since the last change in the political system.

Education is free and compulsory between the ages of 6 and 16, and a robust 99% of school age children attend primary school. New Zealanders get a strong start, with average class sizes of 16, and educational expenditure of $7,598 per student is efficiently allocated. Enrolment remains high through secondary school, the second highest rank on this variable. Compared to secondary enrolment rates, tertiary enrolment rates drop to 80%, ranking the country only eighth, internationally. There is a high ratio of female to male enrolment, indicating equality of access. On average, New Zealand workers have attended secondary school for a little over five years, and tertiary level education for four and a half years, suggesting high levels of human capital. Entry to university is open, meaning that all students who meet course requirements win a place.

The government provides subsidised primary healthcare, and while free treatment is available in public hospitals the ratios of 22 doctors and 62 hospital beds per 10,000 people ranks New Zealand 38th and 20th, respectively, on these measures. Infant mortality is very low, with five deaths per 1,000 births. The incidence of malnourishment is among the lowest worldwide at 3%, and health-adjusted life expectancy is very high at 71. New Zealand obtains the highest possible score in provision of sanitation facilities and waste disposal and 89% of those surveyed are satisfied with water quality.* Most New Zealanders see themselves as healthy, with just 18% of respondents reporting non-age-related issues that interfere with daily life, but nearly a quarter report being in regular pain, an average proportion internationally.* But just 62% of respondents reported feeling well rested, which suggests that many individuals either do not get enough sleep or are experiencing significant sources of stress in their day to day lives.*

Assault is infrequent in New Zealand; just 2% of respondents reported having been a victim of such a crime in 2008.* Reported theft of property and money is about one in five, which is average when compared internationally.* Perceptions of personal safety are also about average, with 63% of respondents saying they would feel safe walking alone at night.* The government does not engage in practices such as torture or political imprisonment, and human flight from dangerous or degrading conditions is negligible. Indicators register some group grievances, but they are not a widespread or systemic problem, and there are no challenges related to refugees or internally displaced persons.

New Zealand is well governed with universal application of the rule of law. Economic and commercial activities are well regulated, and the country ranks internationally among the top 10 for governmental effectiveness. Good governance is rewarded with broadly positive public perceptions of how the country is run. Political, military, and business institutions inspire high levels of confidence in citizens, and New Zealanders believe their local government and businesses to be largely free from corruption.* Political legitimacy is high, with 71% of respondents indicating that they are confident in the honesty of elections.* With 58% of respondents indicating their approval of the judiciary and court system, confidence in New Zealand’s judiciary is ‘about average’ when compared with other countries.*

New Zealanders enjoy excellent freedom of movement, religion, and speech. Tolerance for ethnic minorities is extremely high, with 91% of respondents believing that New Zealand is a good place for such minorities.* The same number of respondents also felt their country was a good place for immigrants.* The majority of New Zealanders – 91% – reported satisfaction with the freedom of choice in their daily lives.*

More than nine out of 10 New Zealanders believe they can rely on friends and family. There are also high levels of social capital in the community: the country has the second highest volunteering rate, with 44% having donated their time in 2008.* Membership of groups is a good indicator of an engaged, interdependent society and New Zealanders also score strongly here; 39% give their time to arts organisations, 43% regularly attend a religious organisation or institution, and 56% are members of a sports organisation.* Social trust is high, with 51% believing that others can be trusted and 67% of respondents saying they have helped a stranger in the previous month.* By international standards, New Zealand is not a religious country, ranking 71st on this variable.*

* Data taken from the Gallup World Poll

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