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New Zealand's destination. (Letters).

Quadrant

| October 01, 2001 | Warby, Michael | COPYRIGHT 2001 Quadrant Magazine Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

SIR: While Bob Catley (July-August 2001) is correct to say that New Zealand used to have one of the highest per capita incomes in the world, his statement that "this started to change in the 1970s" is a little misleading. As late as 1950, New Zealand had one of the three highest per capita incomes in the developed world, according to the comparative national income figures compiled by Angus Maddison. By 1960, it was not in the top ten. By 1973, it was back in the top ten, but its ranking has slid rapidly since. The ratio of New Zealand's per capita income to the average of nineteen developed nations tells the story even clearer. In 1870, 1913 and 1950, its per capita income was 40 to 50 per cent higher than the average. By 1960, it was slightly under the average, in 1973 slightly over. It is now about 60 per cent of the average, according to OECD figures.

The problem has been its poor economic growth performance. New Zealand's rate of economic growth from 1870 to 1950 was around the average of the developed world. Since 1950, its rate of economic growth has been less than 40 per cent of the developed world average.

New Zealand's comparative economic performance ...

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Source: HighBeam Research, New Zealand's destination. (Letters).

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