Think Big

The term Think Big (English: to think = think big = big ) means the in the 1980s carried out in New Zealand 's economic strategy. At that time it was in the now largely deregulated and privatized Pacific State to a Steered economy whose economy was largely determined by the state. The project, behind the Robert Muldoon, the then Prime Minister of New Zealand National Party stood, was called to the reduction of dependence on other countries as well as to solve the enormous economic problems of the country into life. The project envisaged the construction of oversized industrial facilities and infrastructural improvements.

History

In the late 1970s, the New Zealand economy suffered from several factors:

• The oil crisis of 1973,
• An extremely high inflation rate
• The disappearance of the main trading partner - the United Kingdom - after its accession to the European Community.

1978 prices for its oil, OPEC increased again and a year later the Islamic Revolution in Iran took place and this country promoted at this time no more oil. 1979 should come to the second oil crisis.

The combination of inflation and economic stagnation - in the 1970s established for this phenomenon is the portmanteau " stagflation " - made ​​the time to create most of the major industrial countries. The inflation problems also hung together with the failure of a system largely fixed exchange rates ( " Bretton Woods System " ), which was / 45 established in 1944. The system had failed mainly due to the United States, who lived beyond their means (see also Vietnam War, the arms race, the Apollo program ).

In 1978, Bill Birch Energy Minister of New Zealand. He saw the extensive reserves of natural gas around the Taranaki as an opportunity for the ailing economy. After 1979 another oil crisis began, forbade you the sale of gasoline on holidays and introduced the Carless Days. In this case, any private motorists had to give one day a week on driving. Offenses against this prohibition are subject to high fines.

The high oil prices had a negative impact on the already existing trade deficit, since oil imports account for a large part of the total imports of the country. The realization of various think - big- projects had to reduce as targets, the strong dependence on imports (especially in the oil sector), to stimulate the economy and to come closer to a balanced foreign trade balance.

The projects

The core of the Think Big strategy consisted of three main projects: These included firstly, the expansion of the oil refinery at Marsden Point near Whangarei, also the establishment of the Mobil group associated factory for the production of synthetic gasoline, as well as a factory for the production of methanol for the Export. It was natural gas converted to methanol from a field in the Tasman Sea and further processed from below to gasoline. As oil prices but fell shortly afterwards, the last stage of this conversion was inefficient and soon finished it. The Clutha River built on the Clyde dam was then built in order to supply the nearby aluminum smelter with enough energy can and today is the largest hydroelectric power plant in the country.

The individual projects are:

• The methanol factory in Waitara to New Plymouth
• The ammonia / urea oil field in Kapuni in New Plymouth
• A plant for the production of synthetic gasoline in Motunui in New Plymouth
• The expansion of the New Zealand Steel steel plant at Glenbrook Pukekohe
• The electrification of the North Iceland Main Trunk line between Hamilton and Palmerston North
• The expansion of the aluminum smelter at Tiwai Point near Bluff
• And the Clyde Dam on the Clutha River

Follow the Think Big era

To date there is no conclusive study as to whether the Think Big policy was for the New Zealand economy of benefits or whether they only increased the national debt. The opinions are very divided. While these projects in terms of the environment certainly were bad, problems with New Zealand's balance of payments in the late 1980s would have been a lot higher without these projects. Even today some of these factories generate high profits, which speaks for their productivity.