Author Archives: Brian Easton

Does Professionalism Matter? (NZIPA Paper)

Paper for the AGM of the New Zealand Institute of Public Administration, 27 June 2002.

Keywords: Governance; Health

Graham Scott’s Public Sector Management in New Zealand includes a half-hearted account of the views expressed in my The Whimpering of the State: Policy Under MMP in which he says ‘Easton makes the extraordinary claim that reformers ignored, or sought to undermine, the personal responsibility and professionalism of the core public sector.’ I am not sure I went that far, but I did report Alan Schick’s concern that there appeared to be an unaddressed tension between the reform’s managerialism with its emphasis on accountability, and professionalism which emphasises responsibility.

Innovation and Growth in Nelson

Presentation to Commerce Nelson’s ‘Innovation Forum 2002′, 26 June.

Keywords: Growth & Innovation

It is indicative of the mood of the country that I have been attending more regional economic seminars in the last year or so, than I did in all of the 1990s. It probably represents both the government encouraging regions to develop themselves, and a sign of growing confidence in the overall economic direction. …

Jane Kelsey at the Crossroads: Three Essays

(Wellington, Bridget Williams Books, 2002), ISBN 1877 242918; $34.95

Review for AUS Electronic Newsletter

Keywords: Globalisation & Trade; Political Economy & History

Students and the general public have found invaluable the sequence of books Jane Kelsey has produced on contemporary New Zealand society and governance, beginning with a study of how the Labour Government dealt with Treaty issues, working through the New Zealand experiment and now a couple on New Zealand in a globalised world, the latest of which is three essays in At the Crossroads (although, curiously, the cover shows a signpost at Bluff, the end of the country). Reviews of her books usually go to the extremes of the paean or condemnation. ….

Towards an Analytic Framework for Studying Globalisation

Versions of this paper were presented to seminars of the Ministries of Economic Development and Foreign Affairs and Trade in May and June 2002.(1)

Keywords

The original invitation for this paper involved my setting out my work on globalisation, for which I had applied for a Marsden research grant. Alas, the applications which went into the second round do not include my one. Perhaps there are 137 more significant issues than globalisation facing New Zealand – which is scary. Even so globalisation is important to New Zealand’s future, to its very survival. This paper argues that not only is the issue important, but that research can progress our understanding of it. Such research should not be focussed on policy issues, but attempt to develop an intellectual framework, which policy makers will find useful. By eschewing policy conclusions it can go deeper, more analytic, and ultimately be of greater value.

Pay Later

The Budget Deficit and Future Generations

Listener 1 June 2002.

Keywords Macroeconomics and Money

MMP has meant the better parliamentary representation. Those whose parties dont make the threshold (75,306 in 1999), who vote informally (19,887), whose votes are disallowed (41,382), who are enrolled but dont vote (382,602), or who are eligible to enroll but dont (who knows?) miss out. But the remaining voters (1,990,188) selected a parliament that better reflects them ethnically and genderwise while a quarter (560,0057) voted for minority parties which better represented their politics than the two main ones. The people’s representation is further enhanced by MMP tipping the balance against the autocracy of single party government.

Is This a Healthy Budget for New Zealanders?

Presentation to a Post-budget Breakfast Seminar sponsored by the PHA (24 May)

Keywords: Distributional Economics; Social Policy

The Child Poverty Action Group is an Auckland based group committed to addressing the economic and associated difficulties that children and their families face. It is grateful for the invitation from the Public Health Association to speak to you. Susan St John, their economic adviser, who has a sterling record in this area, asked me to make a presentation on her behalf. I am going to briefly summarise some of Susan’s recent work, reported in a paper Financial Assistance for the Young: New Zealand’s incoherent welfare state. Then at the end of a short presentation on an enormous and very important topic, add a couple of comments of my own.

Centrifugal Forces

Listener May 18 2002

Keywords: Political Economy & History

The breakup with the Alliance was probably inevitable, although had the government not committed troops to Afghanistan it may have happened after the election. While there were particular and personal elements in the party breakup, it also must be seen in the context of the conventional political spectrum. Labour, under Helen Clark, has command of the political centre of New Zealand, the party shifting from its centre-left traditions. No centre-left party could have readily engaged with Afghanistan (not after Vietnam) while its economic advisers include many rogernomes. The impression is its economic policy framework is essentially a continuation of the late 1980s, with a few minor modifications: a kinder gentler rogernomics?

Keep the Aussie Dollar at Bay

New Zealand Herald 07.05.2002

Keywords: Globalisation & Trade; Macroeconomics & Money

Should New Zealand form a currency union with Australia, just as until recently Argentina did with the United States dollar? A fixed exchange rate between two markets is clearly advantageous to the exporter, whose one ambition is to sell to Australia. But more than 80 per cent of exporters and 90 per cent of the economy have other ambitions.

Cutting off the King’s Head:

The Bill of Rights and the National Library and Archives
Listener 4 May, 2002.

Keywords Governance, Political Economy & History

While I have considerable sympathy for historian Jamie Belich’s plea to teach more New Zealand history in our schools, the Seventh Form course on the Tudors and Stuart periods is attractive, given its foundational role in the development of Westminster style governance. Or I thought it was attractive, until I learned that the study ends in 1660. …

Beware the Median

SPRC Newsletter No 82, November 2002, p.6-7.

Keywords: Distributional Economics; Social Policy

In their article Beware the Mean!, Peter Saunders and Tim Smeeding argue that median household is a superior reference point for establishing a poverty line than mean household income, concluding ‘Put bluntly, the use of a poverty line linked to mean poverty income produces excessively high poverty rates that tend to increase by more when poverty is rising but to fall by less when poverty is falling.’ The purpose of this note is to demonstrate that poverty lines based on a fixed proportion of the median income are subject to a fatal flaw, illustrating the consequences of the flaw with recent New Zealand experiences.

Brian Easton Reviews the Nationbuilders

Letter to “N.Z. Political Review”, Autumn 2002.

Keywords: Political Economy & History

While there is some dispute as to what a reviewer owes an author there is no doubt that he or she has obligations to the review’s readers, obligations which Simon Boyce manifestly fails to meet in his so called ‘review’ of my The Nationbuilders (Nov/Dec 2001).

Science and Nationbuilding

Revised paper presented to the Rotorua Branch of the Royal Society of New Zealand, 1 May 2002

Keywords Growth & Innovation; Political Economy & History

The Nationbuilders is a book about the economic social and cultural development of New Zealand from 1932 to 1984 when a group of visionary New Zealanders developed the nation. The story is told through a set of biographical essays, but while some have read the chapters separately for the individual stories, in fact the book has a series of themes, which the lives illustrate.

Does Professionalism Matter? in Health and Education It Still May

Listener April 20, 2002.

Keywords Education; Governance; Health; Labour Studies

In Graham Scott’s Business Roundtable published Public Sector Management in New Zealand”, the ex-Secretary of the Treasury provides an account of the late 1980s public management reforms with which he was closely involved. The book includes a few pages on critics of the reforms, including a half-hearted account of my views in The Whimpering of the State (and these columns). Scott writes, ‘Easton makes the extraordinary claim that reformers ignored, or sought to undermine, the personal responsibility and professionalism of the core public sector.’ I am not sure I went that far, but I did report American expert Alan Schick’s concern that there appeared to be an unaddressed tension between the reform’s managerialism with its emphasis on accountability, and professionalism which emphasises responsibility. Curiously (I will not write ‘extraordinarily’), Scott’s book does not provide much evidence that professionalism is a central concern, for its few mentions are desultory. There is more concern about ‘professional capture’, the danger that professionals will administer the system in their interests rather than the wider public good. (The issue echoes the corporate management/shareholder tension I wrote about in my last column Guard Dogs That Fail to Bark.)

The Origins Of Four Books

Part of submission for the degree of Doctor of Science from the University of Canterbury. (April 2002)

Keywords: History of Ideas, Methodology & Philosophy;

I began studying economics at the University of Canterbury in 1962, while doing my honours science degree in mathematics, and in late 1963 took up the position of Research Assistant at the N.Z. Institute of Economic Research, completing my B.A. in economics at the Victoria University of Wellington. As a result I got a very wide training in economics – in macroeconomics, microeconomics, development economics, and public policy – covering both theory and applied economics.

Guard Dogs That Fail to Bark

Management and Shareholders
Listener 6 April, 2002.

Keywords: Business & Finance; Governance

In 1932 Adolph Berle and Gardiner Means showed that there was an increasing separation between the shareholders who legally own the corporations and the managers who control it. Their seminal insight suggests that managers may have sufficient independence to pursue their own objectives – higher pay, better conditions, prestige, technological excellence – at the expense of shareholders. (The New Industrial State by J.K. Galbraith is the best know book setting out the case.) Those committed to the pure market approach responded that the shareholder can sell the shares of under-performing companies to others whose managers would produce higher shareholder returns. They described the sharemarket as the ‘market for management’, where competition would result in higher returns to shareholders, as efficient managers took over inefficient businesses.

Who Goes to the Doctor?

Overheads for a presentation to an Independent Practitioners’ Association Seminar, April 2002.

Keywords: Distributional Economics; Health;

*******

This work comes from a report on research being prepared by Brian Easton and Suzie Ballantyne.

This research arises from a limited grant from the Health Research Council.

It uses Statistics New Zealand data. However they only provided the data, and the results presented in this study are the work of the author, not Statistics New Zealand.

The data is based on unit records from the Household Economic Survey for the three years between 1994/5 to 1996/7. Access to the data used in this study was provided by Statistics New Zealand in a secure environment designed to give effect to the confidentiality provisions of the Statistics Act 1975.

Reviews Of Two Books on Labour Skills and Social Progress

High Skills: Globalisation, Competitiveness, and Skill Formation by Phillip Brown, Andy Green & Hugh Lauder (Oxford University Press, 2001).
Capitalism and Social Progress: The Future of Society in the Global Economy by Phillip Brown & Hugh Lauder (Palgrave/Macmillan, 2001)
NZ Journal of Adult Education April 2002.

Keywords Education; Growth & Innovation; Labour Studies

‘Knowledge-driven economies are associated with polarization and inequality rather than convergence and equality’ is the sort of challenge that our ‘Knowledge Wave’ adherents, wrapped up in rhetoric rather than analysis, would want to ignore. High Skills goes on ‘How societies tackle the problem of social exclusion and positional competition fro education, training and jobs is therefore an important pressure point for all countries’. So the writers are not rejecting the potentiality of the knowledge based economy, and its benefits – higher living standards of more and new products and better quality jobs. Rather, both books consider how we need to organise society given the knowledge-driven economy which is a response to globalisation.

A Dissertation on Rare Essays

Presentation to ‘First Loves’, a session at ‘Reader’s and Writer’s Week, 17 March 2002.

Keywords Miscellaneous

Sometime in middle school – between Standard Three and Form Four – my class was read Charles Lamb’s Dissertation on Roast Pork. It may have come from a school journal, because others of my age have a similar memories, whereas commonly those who are a little younger dont know the essay. …