Section 2: The Ministry's Strategy for Growth
The Ministry advises the Government on its strategy for economic development and transformation. We work to ensure New Zealand is one of the best places in the world to do business, to create the conditions to lift productivity and prosperity, and to make New Zealand business successful on the world stage.
This section summarises the five strategic priorities the Ministry has identified to most effectively support the Government's economic goals, focusing on:
- Leadership
- International Linkages
- Innovation
- Regulatory Environment
- Infrastructure
The Ministry's Strategic Priorities
The Government's goal is a dynamic and internationally competitive economy that increases the prosperity of all New Zealanders. To support that goal, the Ministry works to ensure that
the business environment promotes productivity growth.
The Ministry undertakes a diverse range of activities to pursue this outcome. We need to prioritise our effort by focusing expertise and resources on activities likely to impact most positively on the business environment and sustainable growth. On the basis of the evidence and judgements summarised in Section 1, we have derived five strategic priorities.
Within each strategic priority, we have identified a set of key issues that need to be addressed to achieve the Government's economic goals. Our strategic priorities are outlined briefly below and described in more detail in Section 3.
Within each strategic priority, we have identified a set of key issues that need to be addressed to achieve the Government's economic goals.
We intend to review our choice of strategic priorities every three years, to ensure we remain focused on the things that matter most. Within each strategic priority, we review our understanding of the key issues more frequently, to make sure we are addressing the most significant issues as they emerge. External consultative groups assist us to identify key issues for each strategic priority. These groups comprise leading businesspeople, academics and local community representatives.
Ministry of Economic Development Strategic Priorities
Leadership
Leading a whole-of-government approach to economic development
Achieving a step-change improvement in New Zealand's sustainable rate of growth depends on getting many aspects of economic strategy right - a supportive business environment, labour market and educational outcomes, effective research and development policy, and so on.
Our role is to lead the development of the Government's economic transformation agenda and to work in partnership with the key economic players to achieve it. This sectoral leadership role is about focusing on the key points of leverage for transforming the New Zealand economy and achieving greater alignment and consistency of effort both within government and between government, the private sector and other economic agents.
International Linkages
Improving the international linkages that allow firms to benefit from trade, knowledge transfer and investment
Being well connected with the rest of the world is key to New Zealand's growth prospects. Trading internationally not only gives firms access to larger markets, it also leads to productivity improvements as businesses discover and embrace new technologies, markets and production methods to compete with foreign firms. This is particularly important for New Zealand, because the domestic market is small and a long way from major global markets.
The Ministry will work on policies to ensure New Zealand firms are well placed to take advantage of international opportunities. In particular, we will emphasise a deeper economic relationship with China across a broad front of business and regulatory activity. We will focus on creating a Single Economic Market with Australia, and on aligning Australia and New Zealand's economic development policies to strengthen the trans-Tasman economy as a whole. We will work with other agencies to co-ordinate New Zealand's regulatory environment more closely with those of our major trading partners, and to promote stronger business networks.
Innovation
Fostering entrepreneurship and innovation in New Zealand firms
An improved rate of growth relies on the performance of businesses and individual entrepreneurs. Business success requires entrepreneurs continually to seek out opportunities and to develop, produce and market innovative products that consumers want. The performance of New Zealand businesses is variable, and relatively few evolve into world-class firms.
This strategic priority focuses on improving the conditions that spur innovation in firms - such as increasing the linkages between the private sector and the public science system, and ICT capability within firms. It also focuses on the suite of facilitative policies that seek to improve the ability of firms to identify opportunities and translate them into commercial success.
Regulatory Environment
Strengthening the growth focus in the regulatory environment for business
One of the most important ways government influences the business environment is through regulation affecting businesses. This includes regulation that sets standards for goods and services, provides incentives for innovation, encourages competition in markets, and provides assurance to consumers and investors.
The Ministry will focus on promoting improvements in the quality of regulations that shape the business environment, to minimise the compliance burden and provide as much certainty and flexibility as possible. We will also work to ensure that regulations designed to achieve non-economic outcomes do not unnecessarily detract from achieving the Government's economic objective of increasing sustained economic growth.
Infrastructure
Improving the quality and reliability of key infrastructure services
Effective infrastructure - such as energy, transport, communications and water distribution - is crucial to New Zealand's productive capacity and growth prospects. Key areas of infrastructure have lacked investment in the past. Shortages in supply have major economic and social effects, which can be exacerbated by our challenging geography and widely-dispersed population.
The Ministry will focus on improving the functioning of the New Zealand energy system and enhancing our connectivity through an effective telecommunications environment. More widely, we will work to create an environment that encourages and enables timely and well-targeted investment in infrastructure.
Figure 2: The Ministry of Economic Development's Strategy for Growth
Long Description of "Figure 2: The Ministry of Economic Development's Strategy for Growth"
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