Rogernomics

The term Rogernomics refers to the policy of the former New Zealand Finance Minister Roger Douglas of the Labour Party. It was based on the concept of Reaganomics, which goes back to the U.S. President Ronald Reagan.

Trigger of reforms

New Zealand is an export- dependent nation with a relatively small domestic market extremely vulnerable to fluctuations in world trade. The difficult international situation in the 1970s put the economy too much. Since the entry of Britain into the European Economic Community ( EEC) in 1973 for the first time New Zealand was suffering under rising unemployment, you had to be based on new trading partners and new markets. As a result of Britain's accession, the exports of New Zealand were limited in the EEC, also foreign demand broke through the first oil crisis and the major commodity imports became more expensive. In addition to the emerging economic problems the state budget loaded high subsidies for agricultural products. Together with the fixed exchange rate of the New Zealand dollar attended these economic problems of an impending bankruptcy of New Zealand.

Goals & Follow

The globalization of world trade presented New Zealand with new challenges. As a forward -looking measure put you in the hope of modernizing the New Zealand economy and the state on the basis of a largely free market economy. The retreat of the state from economic management, towards a more liberal system, and the curtailment of the welfare state should provide high savings and restore the economic competitiveness of New Zealand. As a result, the Labour government cut taxes, privatized state-owned enterprises (such as 1987, the state-run postal company, New Zealand Post Office ), reduced government spending in the social sector and emphasized subsidies and tariffs.