On The Platform Radio show last week, I unleashed on the topic of the lack of integrity and nepotism and corruption in New Zealand. It works differently here from other countries. For example, one of my mates from Argentina who founded the field of the "economics of corruption" described how wage setting by unions frequently works there: the union boss negotiates with the company boss behind closed doors. In exchange for taking a reduced wage demand, the company boss gives a suitcase of cash to the union boss. Simple as that. In NZ, it turns out we are way more sophisticated. Here it works differently: you do a favour for someone, like help them get promoted, help them onto a Board, help them into a big government position, regardless of personal merit. Then you wait - maybe even years, for them to return the favour. Its, "You scratch my back - I scratch yours". And its rampant. Its also hard - next to impossible - to prosecute. Its difficult to ever prove that a favour was done - especially a long time ago - that is now being repaid. And the repayment does not come in the form of a suitcase of cash - but it can often be worth a lot more in NZ.
Awhile ago I was told by one of the highest officials in Wellington that should this Blog keep doing articles critiquing NZ's rulers, there'd be no Board jobs; no high up appointments, for me. This Blog article - all true - though not flattering to Finance Minister Willis - run in the Herald - finished me off, they said. Forget being on the Reserve Bank Board, or big advisory committee. They go to people who suck up. Who cares whether one's work in monetary economics was discussed & cited as being influential by America's last Treasury Secretary Janet Yellen, as well as former Chairs of the US Federal Reserve? It's irrelevant in NZ. But its not just government jobs, its corporate jobs. Our boards are full of mates, of people there because favours are being returned, who know each other from way back.
I don't personally care; already have a decent job, and am not bitter about it, since I value free speech more than government attempts to silence critics with threats to shut them out. But for all you budding writers and students who want a good career in NZ, here is some advice. Go write things like Fran O'Sullivan (who I know a bit) in today's Herald - since then you will get invited everywhere and put onto everything. I mean, Fran, this is just such a great line: "At a recent event held under the Chatham House rule, business leaders were treated to an inside view on how influential Wellington players view the PM. It's fair to say there has been a revolution at the heart of Government. Luxon has been focused on the cost of living, fiscal issues and now economic growth. As one player related, they had not seen before a Government with such energy and drive and a clear sense of mission.
Gosh, a revolution? I must have slept through it. You'd never know NZ has become one of the world's most expensive countries to live in due to rampant monopoly power; a GDP growth rate ranking us 181st out of 190 nations; that we're in one of the deepest recessions since the early 1990s when its hard to find a single other country in recession - aside from those in civil war; and NZ has a cash fiscal deficit that's one of the largest recorded over past decades, with no plan to address the structural deficits due to an ageing population. Not to mention how the Coalition got the country to spend its energy last year debating the Treaty but all for no purpose - because the PM vetoed ACT's bill - yet has no proposal of his own. That non-resolved-debate has been a zero productivity one. And lets not forgot that despite Luxon being Minister for National Security & Intelligence, he told journalists that he had no clue what was going on between Rarotonga & China. Everyone else does: its game, set and match to China. Checkmate. You were outsmarted, Chris. Maybe I really am dumb - should have always taken my mother's advice, "If its not nice, don't say it".
