Frank Greenall: Why is NZ going down the gurgler?

Frank Greenall

WHAT happened? A few generations ago New Zealand was at or near the top of most socio-economic charts that defined standards of living -- we were the All Blacks of Quality of Life (QoL), and it didn't get much better than that.

Well, not only has that happy state of affairs long gone, but -- appallingly -- we now have the grubby distinction of being part of the leading pack in many aspects of the race to the bottom: youth unemployment and suicide rates; house price/income ratios; relative child poverty; income disparity; certain child disease rates and environmental despoliation, to name just some.

Given our huge reservoir of rich natural resources, it was not surprising that we once led QoL stats. So what saw us tipped off the top and headed for the bottom in several crucial metrics relative to many other nations?

Comparable in size, population, education, and access to natural resources, let's look to the Scandinavian countries for a clearer idea of where we could -- and should -- now be. Even without factoring in North Sea oil benefits, how is it that NZ is now eating their dust in QoL terms?

Crucially, the Viking countries have not allowed themselves to get hung up on fatuous, largely meaningless, ideological terms like "socialism" and "capitalism". They have developed a politic of intelligent pragmatism that's prepared to run with whatever achieves best broad-brush results. It's basically founded on a flexible co-operative model whose main criterion is: "Does it improve our overall QoL?" The Danes call the model Flexicurity.

This model largely stemmed from a commitment to a well-regulated stock market, full employment, responsible unions, free and universal higher education, health and retirement care and affordable, efficient public transport and housing -- the combined effect of which produces a buoyant, efficient workforce and economy. If that's socialism, it's pretty hard to argue with.

Yet hang on -- Norway and Denmark, for example, also have higher entrepreneurial, business start-up, and patenting rates than the United States. The chief economist for the US Small Business Administration's Office of Advocacy was asked why.

He replied that the three main sources of concern for Americans are education, retirement and medical costs -- realities that mitigate against risk-taking, but are no longer major issues Nordic issues. Additionally, the United States' younger, more risk-inclined demographic is now often held back by student debt.

Another, perhaps surprising, finding in the Nordics has been that freedom of opportunity -- as expressed by innovation and social mobility -- has been in direct proportion to socio-economic equality. The more equality, the more upward mobility.

This also translates to improved gender equality. As far back as 1986, Norway had a cabinet which was as near as gender equal, and now also legally requires a 40 per cent female component in boards of directors. Two-thirds of students in the (free) universities and colleges are also women.

These are but a few of many modern Nordic social advances that place them firmly in the top echelon of progressive, prosperous QoL nations. In the Save the Children 2015 rankings for "the best place to be a mother", the Nordic countries filled all top five rankings. New Zealand was 17th, Britain 24th and the United States (supposedly "richest" of all) 33rd.

With our election imminent, it may be apposite to examine some more Nordic initiatives and, next week, reflect on why our own politicians seem loath to reference them. Despite their hiccups (notably Iceland's banking blow-out), maybe they comprise a too-painful reminder of our lost potential.

Sadly, another iconic Ball recently slipped through our hands -- cartoonist, former Junior All Black, and New Zealand great Murray Ball.

Some years back, when asked why he'd retired Footrot Flats, Murray replied that the collaborative, inclusive, New Zealand lifestyle that helped inspire his characters and situations had ceased to exist. They'd withered under the ravages of faux-liberal Rogernomics -- ironically introduced by Labour.

RIP Murray, Wal, Dog and the gang.