2002 OECD Economic Surveys: New Zealand 2002

image of OECD Economic Surveys: New Zealand 2002

This 2002 edition of OECD's periodic economic reviews for New Zealand examines recent economic developments, policies and prospects and  includes special features on public spending and raising output growth.

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Next steps for public spending

the pursuit of effectiveness

New Zealand began an ambitious fiscal reform in the late 1980s, trying to

boost the quality and reduce the level of public spending. This involved a change

in the role of the state, re-engineering the public sector and, a few years later, creating

a transparency-based framework in an attempt to impose better top-down

expenditure control. On the whole, these moves have been successful. Reforms

began with one of the OECD’s most aggressive corporatisation and privatisation

programmes, and this, combined with an efficiency drive, reduced general government

outlays from more than 50 per cent of GDP in 1986 to less than 40 per cent at


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