Closing the Gap – why we seem destined to fail Print
Thursday, 04 February 2010 11:57

First published in the National Business Review

Everyone has their theory as to why New Zealand incomes lag behind those of Australia, or indeed why there is no possibility of closing the gap. Some claim that there is no need to worry about the gap because money is not that important – an opinion normally voiced by those with plenty of money.

One popular “explanation” is that we do not invest enough in Research and Development – and the Government should fix it.

However, if this claim is true, it probably has less to do with the specifics of Government decision making, than the anti-technology culture that increasingly pervades our society.

Further, this anti-technology culture is embedded in a broader culture that is anti-growth and development, and even hostile to our democracy, freedom and Western Civilization itself. These beliefs underpin the success of the movie Avatar – a technological marvel spreading the message that white westerners are brutal, greedy and insensitive beasts who, in search of profit, use their nasty technology to rape the environment and destroy primitive but spiritual cultures.

Mike Moore’s latest book “Saving Globalization – why Globalization and Democracy offer the best Hope for Progress, Peace and Development” provides a useful antidote to these bleak messages of self-hatred.

Moore’s message is what we used to expect from New Zealanders – a combination of enthusiasm, practicality, experience-based wisdom, common sense, and scant regard for rigid ideology or dogma.

So far, however, no one in New Zealand has reviewed this book. On the other hand the China Daily's weekly supplement, “China Business Weekly”, of the 14th December 2009, has filled the gap. But then the Chinese are committed to economic growth and development, rather than to stagnation and self-doubt. They can even say ‘capitalism” without a sneer, as in:

‘The author analyses capitalism from the period of the Greeks to the Geeks, and offers a new approach to the creation of a new international architecture that would promote equity and fairness. “Saving Globalization” celebrates the achievements of global trade, and argues that a global future should be faced not feared.

This book is a thought-provoking read for students of the global economy.’

Given New Zealand’s dependence on global trade, and given the endorsement of the book by so many of the key players in the international forums that will dictate our future, you might think the book would be, if not welcomed, at least debated, by all those who claim to care for our nation’s future.

You would be wrong.

So why is such an important book being ignored?

First, Mike Moore occupies the no-man’s land between the Party trenches. Neither left or right want to acknowledge his existence, let alone his ideas, but wiser heads in Government will surely prevail.

Second, the content is clear, readable and entertaining. Any New Zealand author, from Sarah-Kate Lynch to Bob Jones knows that is totally unacceptable to the literati.

Third, Moore is an unfashionable optimist:

Far from being pessimistic about the state of the world, I am always recklessly, even dangerously optimistic. In most areas of human existence things have improved. Life expectancy is up, literacy is up, and human rights have improved dramatically in most places.

Fourth, he describes his latest work as “a small book about big ideas”. New Zealanders are generally reluctant to talk about big ideas – ideas about freedom, the rule of law, our constitution, and productivity. They much prefer gossip. Teresa Gutting’s forthcoming book on the inside story of Telecom will be reviewed by every paper, magazine and blog in the country if she avoids the big ideas and focuses on the personal.

I once asked a New Zealand author why so few New Zealand books had a decent index. He explained that potential purchasers would pick up the latest book and if their name was not in the index they would promptly put it down again. On this test, the index to Saving Globalization guarantees few New Zealand sales.

But what will most deeply offend both our literati and our glitterati is Mike Moore’s open advocacy of Western Civilization – from Greeks to Geeks – and the demonstrable merits of democracy, market-led economies, secure property rights, the rule of law, and of course, free trade.

Maybe to challenge Moore’s plain language, Jane Kelsey, the Anti Free-Trader has just received a Government grant of $336,000 to study “Confronting the Contradictions of New Zealand’s Embedded Neo-liberalism in a Post-Neoliberal Era”. Whatever that may mean – but hey, that’s where the money is.

Moore invites further rejection when he says:

My book warns against those who appease the fickle Gods of opinion polls and refuse to stand up for the values and virtues that have given us such wealth, prosperity and freedoms. We must stand with certain moral clarity for these progressive principles or we will surely falter, stall, go stale and fall. I kick all shins equally and I apologise in advance, if I’ve missed anyone out.

The Deep Greens routinely promote the mantra “Technology has caused our problems and therefore technology cannot solve them.” But in Chapter 20, The Enemies of Reason, Moore argues that science and technology are the key to solving most of our problems. Of course the regular people love their iPhones, the Internet, their GPS, and their Hybrids. But what would they know?

Now, consider the makeup of the Review Panel of the Productivity 2025 Task Force.

Don Brash – economist. David Caygill – lawyer; Jeremy Moon – clothing manufacturer; Judith Sloan – economist; Dr Bryce Wilkinson – economist.

Now these are all first class people who deserved their position on the team. But, like the dog that didn’t bark in the Sherlock Holmes story, look at who is missing.

There is no representative from the technology business sector – whether heavy or light engineering, mining and smelting, electronics, energy, medicine, or anything steeped in engineering and science.

Where are the likes of Hilton Glavish, Bill Buckley, or Bill Gallagher?

Can anyone imagine Japan, Germany, or the US setting up a productivity taskforce without including anyone with any real knowledge of commercial technology and its contribution to overall productivity? To my own shame, I have only just noticed it.

If we do intend to close the income gap with Australia we can only hope that many of our aspiring leaders read this book. They might learn to reject cultural primitivism, and rediscover the great traditions of the Enlightenment.