Macleans College: 2012 ANZ Massey Economics Challenge

Macleans College concluded that while the sale of state assets was not a perfect solution, it did offer the most suitable way of reducing the government’s debt in the short term. Judge Dr Philip Stevens, head of economic research at the Ministry of Business, Innovation and Employment, said: “This year’s presentation question shows you the kind of questions we have to deal with in economics – i.e. it’s very hard and there’s no simple answer. In economics we ask questions like: Why is Africa poor? Why is water, the most important thing we’ve got, worth less than diamonds? What services should be provided by the state? The questions are complicated, and the winning team used the economic tools at their disposal to weigh up the pros and cons, and then systematically arrive at their solution."