The Economy after 1984

Abstract

The ultimate success or otherwise of the reform programme must be judged on the basis of economic performance. The reform programme undoubtedly involved very considerable short-term costs. Whether these should be attributed solely to the reform programme is another matter. The strong upturn in the economy since mid-1991, however, is an indication that the reform programme has had a positive impact. There is now a widespread belief, both domestically and overseas, that the basis has been laid for a sustained period of strong economic growth. It remains to be seen whether such hopes will be fulfilled. Nevertheless it is possible to draw some lessons from New Zealand’s experience. These are of more than just academic interest, not only to New Zealanders, but to policy makers in many other countries besides.