New Zealand: The blueprint economy?
As the first country to see the rising sun, could it be the perfect landscape for providing models to future-proof the world? An insight into Covid, tech and farming.
In the period 1890–1920 New Zealand was at times regarded by foreign academics as the “social laboratory”, where new policy initiatives were pieced together for testing and evaluation. Although now far removed from a mere ‘testing site’ for the world’s social and economic policy, many are looking at New Zealand’s model as a success story primed for global implementation in many ways, and those that don’t might do well to start.
I have never actually visited New Zealand, but it has always held a certain awe and excitement over me. From watching Bilbo Baggins trawl over the Shire landscape, to friends raving about the “really sick nature and views” on their gap year travels, I have always felt compelled to pay a visit, even if the opportunity and funding had never elicited one.
The Pandemic
As has been the talk of the town this past year, New Zealand’s response to the current pandemic has been astonishing. Being the first country to register no cases in a month-long period back in the Summer, many heralded it as the blueprint response to defeating Covid. Although a number of cases have since returned they can hardly be called a ‘wave’ as they are in Europe and the US. The current Prime Minister, Jacinda Ardern, has been at the forefront of their challenge on Covid, saying she would make “no apologies” for her strict lockdown restrictions being short but sharp. In contrast to the long and laborious restrictions faced in the UK, Kiwis are currently holding the largest mass gathering anywhere in the world during the past 9 months [a music concert] and daily cases never reaching above 100 across the entire year. It is almost painful to see such a success in motion, while we still must lock our doors and pull down the blinds as Covid still ravages our economy and plays havoc with mental health. When New Zealand began its first lockdown back in March, it had recorded 102 cases and no deaths; When the UK closed down, it had 6,500 cases and 330 deaths. When New Zealand announced changes to current measures, each time the public were in no doubt about what was licit and what wasn’t; Every time the UK changed laws, it increased risk as people found themselves creating their own restrictions, being totally lost as to what was newly permitted or forbidden.
There is no doubt that it’s geography, isolated location and relatively low population density have made decisions and implementation a lot easier. Mass testing and high domestic dependency are inherently easier to impose, and many have therefore concluded it an unreplicable system and solution. An island sitting at the border to the pacific did not receive a single case until Europe had been fully enveloped. Yet, given this pandemic has outlasted most primary predictions, is it now not a time to look at the system in more detail? Maybe not quite for larger entire countries who do not have the agility or nimbleness of New Zealand, but can it not be used as a benchmark micro model for success, as Oksana Pyzik believes, or even a system to be used in isolated environments such as in care homes? “The cornerstone of a pandemic response for every country must be to find, test, isolate, and care for every case, and to trace and quarantine every contact” [Pyzik] and this is exactly the response taken by Kiwis.
One independent boarding school in Wiltshire, Marlborough College, is a perfect example of the successes a New Zealand blueprint can offer. Although not hailing from the same draft, each blueprint for success seems rather similar; Each pupil, on returning to school following the October half term break, was subject to a mass testing extravaganza as pupils, along with their parents, would queue in cars in a timed system akin to boarding a ferry, and through a highly organised system, would one-by-one be filed into a mobile testing facility. This was home to a private testing facility bought by the school and allows every single pupil (circa 1000) to be tested and results returned to each individual, by email, within approximately 3 hours, and only then can they physically take their place in school. The result, with pupils also subject to regular testing each month whilst at school, has meant only a tiny handful of pupils have tested positive. This is in no small part due to the test and track system imposed and although they had the necessary financial resource, it was not an outlandish amount and relied/required a rigorous process implementation, compliant parents and compliant pupils. If testing positive, a rigorous tracking system means anyone who came into contact would be confined to self isolation at home with their family, not being allowed to return until the regulation quarantine period had elapsed and a further negative test administered by the school. An incredibly simple procedure, and almost a carbon-copy of New Zealand’s process.
So this can be seen as the first prime example of how New Zealand, given their highly agile system and clear, personable rhetoric, is a blueprint state for a Covid response, as it is nimble enough and societally aware to allow for genuine success. As 2020 is now firmly in the rear-view mirror, it seems New Zealand is the only country able to leave with their dignity intact and future ambitions back on track.
Innovation
The technology & innovation sector is a burgeoning part of the New Zealand economy and is undoubtedly part of their prosperous future. Backed by a growing investment market, with NZ$100M angel investments made in early stage tech companies and a NZ$11BN investment sector [Icehouse blog], New Zealand and its capital Auckland’s innovation potential stands at a major crossroads, and has the genuine potential to become a tech hub like San Fran, London and Tel Aviv.
Previously, Auckland’s issue was contained in their ‘tyranny of distance’ as David Cooper explains [Wired], but possibly now, especially now, distance seems to be the best thing for growth. Being separate from the bustle of Covid-mania can provide serenity and focus to MSH, and given the ease at which one can set up a company in New Zealand [just NZ$105 smackers to the companies office] the climate is ripe for innovation. Around 130 startups successfully raise investment, with 40% being seed and 60% being secondary+ rounds. One thing which is lacking in the current market is venture backing, as most are angel backed or have not received the international scope that is deserving of the ideas. This then leads to a lack of funding and not enough injections of expertise and zip that venture-backing brings, meaning many startups fail to prove market need or significance.
However, and key to its’ future, New Zealand has just topped the World Bank’s ‘Ease of Doing Business’ rankings and as Shawn O’keefe details “Being small and nimble, we don’t have the same level of bureaucracy and bullshit as in the States” [Wired]. So what does this all mean for New Zealand becoming a ‘blueprint state’?
One thing for certain is the direction the startup sector is going, being of a simple aim to make nature and societal impact just as important as growth and cash. The attitude to why things are being built is an innovation in itself, where Auckland based firms seem to create for impact rather than build for cash. Particularly in biotech and farming, there is a clear setting for ethical innovation and if we want to see the change, this has to become the go-to global innovation attitude.
It is also the perfect testing ground; They have strong connections with the US, China and Europe through comprehensive free-trade agreements, access to the Asia-Pacific network and being a main player in the developed world. It has world-class internet speeds and has a near perfect 12-hour timezone compatibility with GMT and is not far away from being in line with the business hours of the US - so it is clear the environment is ripe. It is why Rocket Lab turned to an empty New Zealand crater to launch a rocket into orbit, and build their rocket there too. It seems that increasingly, if you want to do whacky things and innovate quickly, go to New Zealand.
As liberal adopters of new innovation, their small population create a beta-landscape and an ability to run ideas past an increasing stock of highly intellectual and tech-native personnel. A recent survey into the KiwiSaver Government savings initiative revealed; 85% of Kiwis disapprove of companies that dodge tax, both in New Zealand and abroad, 75% don’t want their taxes and investments involved in ‘junk food and sugary drinks’ and 80% disapprove of investments into tobacco.[https://medium.com/actionstation/kiwis-dont-want-their-savings-invested-in-marlboro-lights-maccas-or-tax-dodging-multi-nationals-9f3b7e786bc5]
So it is all too obvious to me that New Zealand has the perfect environment, as long as their venture and investment stack grows to support it, it can evolve even more so to become a testing ground for ideas and solutions to the world’s most pressing problems.
Ag 2.0
This world-beating philosophy is displayed in abundance in their agricultural & energy sector. Kaitiakitanga, meaning stewardship and guardianship, is a uniquely Kiwi philosophy. If this remains a central pillar within the culture here, startups can soon be at the forefront of the food revolution, where the green space and appetite for change can breed genuine innovation. Firms such as Biolumic and BioConsortia are at the forefront as we speak, and I believe this is just the beginning for New Zealand.
The Government have realised this, with Jacinda Ardern announcing a ban on oil ‘exploitation’ back in 2018 saying “the transition to a zero-carbon economy” must start somewhere, she has consequently prevented billions of NZ$ from being harvested in places such as the Taranaki basin, containing a vast array of 98% unexplored reserves. However, in my opinion, this is the exact attitude that makes New Zealand special, in not shying away from tough decisions and ethical action in the face of cash profit. In place of this oil ban, Ardern announced a NZ$27M ‘clean energy’ stimulus in building a renewable energy centre to justify the transition to a zero-carbon economy. Sustainable policy is nothing without an explanation of the decision taken and how this might benefit the economy in the long run and this is exactly what occurred here.
Listed here is a synopsis of the wonderful agri-innovation that is currently underway in New Zealand: https://medium.com/silicon-valley-robotics/showcasing-nz-agtech-bringing-automation-and-robotics-to-the-farm-5eb8d6c91881
So there you have it. An account of New Zealand not only as a land of beautiful sprawling greenery, but of the huge potential it holds for the future. However, as I hope to have justified, it is also a testing & breeding ground for technological adventure and escapades into what can be possible. Providing an environment for the creation of blueprints and models for world adoption is a genuine trajectory, and I for one see Auckland rising towards the levels of a quasi-Tel Aviv, London and San Fran.
Icehouse blog: https://blog.theicehouse.co.nz/?_ga=2.196199333.888245362.1610915769-2111239169.1610814694
Wired blog: https://www.wired.com/story/why-the-tech-elite-love-new-zealand/
Health & Wellbeing survey: https://www.health.govt.nz/our-work/diseases-and-conditions/covid-19-novel-coronavirus/covid-19-resources-and-tools/covid-19-health-and-wellbeing-survey
Medium article 1: https://medium.com/@tristanpollock/new-zealands-tech-scene-is-hotter-than-yours-ac02da0109bb
Medium article 2: https://medium.com/@dankhan/start-nz-up-an-action-plan-for-a-more-entrepreneurial-economy-in-aotearoa-new-zealand-d1a301769f11
Medium article 3: https://stories.ehf.org/insight-into-regenerative-agriculture-in-new-zealand-5da90f04524b
