Summit scaled - now the hard part

By Rod Oram

Chairing Apec and hosting the summit were a doddle. Now comes the really hard work: building on the Apec foundations New Zealand has laid this past year in politics and business.

Actually, in fairness to New Zealanders in business and government who have driven Apec this year, successfully chairing and hosting was hard, highwire work. But reaping the rewards will be an even bigger test.

First, politics. Since Britain turned to Europe back in the 1970s, New Zealand has been trying to develop an Asian identity. We've been diffident about the task in contrast to the Australians. In their ambitious style, they grabbed a godfather role towards a number of their Asian near-neighbours. Self-interest in security and economics has been a key motive for Australians.

In Apec, we've shown a different face: the well-intentioned facilitator. Yes, we push our ideas on open economies believing we will win trade and investment. But these are unselfish goals. Other economies will benefit too.

By helping Apec make progress on those issues over the past week, we've enhanced our reputation as a capable country. Because of East Timor, the kudos goes beyond Apec to international relations.

As a result, New Zealand can expect to be asked to play a bigger role across the region. Saying yes will win us friends and influence but will cost effort and money for the political, bureaucratic and military work involved. We must say yes or we'll become an irrelevant little country on the outer edge of the region.

Second, economics. New Zealand once led the world in radical reform. The result is one of the most open and more efficient economies. That was a painful achievement for which we have yet to get full benefit. In particular, we should have attracted much more foreign investment in new ventures and taken more credit for what we've done, building our self-confidence in the process.

Many other countries are following our lead on reform. Some are catching up or even surpassing us in remaking their economies. We need to respond in three ways: prevent reversals of reforms in areas such as in employment law and accident compensation; push through more reforms in areas such as roading and education; and begin to put muscle on the bones of the economic system we've built.

Trade and investment will help develop our economy - not trade in raw commodities or foreign portfolio investment via the stock market in existing businesses but high value exports and investment of money and expertise in new ventures.

Thanks to Apec, New Zealand has scored this week its first "ping" on the radar screens of some potentially very helpful new foreign investors and traders. But as with radar, we'll have to keep refreshing the image until we land their business.