Social Science Utopia - New Zealand
Greetings from Auckland! We are sitting at the airport, waiting to board the long flight home.
New Zealand is an amazing country. While we have been here, our posts have focused mostly on the natural beauty, adventure sports, and cute things that the kids have said and done.
As we have reflected on our time in New Zealand, it seems that the truly most amazing things about New Zealand are its socioeconomy, its highly functional political system, and its civil society.
When social scientists dream utopian dreams at night, they must dream of New Zealand.
At a high level, this is a country where basically everything works, everyone gets along, and there are no huge problems or policy challenges confronting society. Compare this with Turkey, India, South Africa or even the U.S.
New Zealand is only moderately rich (roughly #35 in per capita GDP rankings), but the population lives very well (#20 in Human Development Index). More important, New Zealand ranked #1 on a global “Life Satisfaction Index.”
Income and wealth are relatively equally distributed: no one is very poor, and if anyone is very rich, they keep it well hidden.
Macroeconomists start talking about equations with the simplifying statement: “Assume a small, open economy.” They are describing New Zealand, which liberated its economy radically in the early 1990s. The government abolished all of the trade barriers and subsidies, privatized the state-owned companies, and deregulated everything they could. The economy has done reasonably well: stable, diversified, and growing over the long term.
Race relations here seem less fraught than in any other country we visiited. The British and the Maori signed the Treaty of Waitangi in 1840, more or less ending hostilities between indigenous and invader. There were challenges to the peace, particularly in the first 20 years. Now Maoris are slightly poorer and slightly more likely to be in trouble with the law, but only slightly. Maoris control fishing quotas, which is valuable and sustainable. Maori culture seems central to New Zealand culture, and there is pride in the shared heritage.
The New Zealand legal system is eminently sensible. There is no tort law, but there is an Accident Compensation Fund and a good set of regulatory safeguards against malpractice, negligence, etc. The state has long recognized same-sex partnerships. In criminal law, the emphasis is on restorative justice, and community involvement. India tells me that the juvenile justice and prison systems are considered world leaders. The crime rate is extremely low.
Political and economic debate is remarkably civil. When the mayors of two cities stopped speaking to each other, it was literally front-page news. The practical, no-drama style of the people seems well represented in the political process.
A couple of small, but telling examples of the deep-rooted practicality:
* The currency notes are made of plastic rather than paper. Lasts a long time, very difficult to counterfeit
* By convention, all retail transactions paid in cash are rounded to the nearest five cents. Pennies and two-penny pieces are rarely used.
* The post offices are great: extremely efficient, staffed with friendly and competent people, open long hours. The boxes we shipped surface mail from Wanaka got to Nashville in two weeks.
* Postage stamps are available in all kinds of retail shops, and many places print their own souvenir stamps. I really liked our Shotover JetBoat postage stamps.
New Zealanders seem to sublimate their more base human instincts into acts of incredible bravery, strength, and endurance. The calm Kiwi jumping out of an airplane, or rowing around Antarctica, or climbing mountains without oxygen seems to be the norm rather than the exception. The women, in particular, exude a steely special-forces resolve and calm.
This blog post reads very “gee whiz” and naive. I’m sure there must be some societal problems, and that horrible things have happened in New Zealand’s history. The economy has actually been pretty lousy for the last year.
New Zealand’s natural endowments of no animal predators (and no snakes), geographic isolation, fertile land and waters, near-perfect weather, and a small, homogenous, English-speaking population are all very helpful. Also, not having a lot of cultural legacy systems (eg, a more-than-nominal monarchy, a feudal system, deeply entrenched religious institutions, powerful military without civilian leadership) have helped New Zealand avoid the traps of many other countries. In all, these characteristics have made it easier for New Zealand and its policy makers to be virtuous.
Easy or not, they have been virtuous. This is an amazing place. It’s insanely beautiful too.












