Image: Regina Kuhne
Summarised by Centrist
Political commentator Bryce Edwards details how forty years ago, in 1984, David Lange’s Fourth Labour Government and Roger Douglas ushered in a period of radical economic reform known as Rogernomics.
According to Edwards, Rogernomics replaced one set of vested interests with another, creating a new elite class, with many sectors dominated by oligopolies and potential for corruption.
Before 1984, New Zealand’s economy was inefficient, dominated by state-favoured monopolies, and mired in low productivity.
Douglas, influenced by neoliberal economist Friedrich Hayek, sought to liberalise the economy, which led to a stock market boom and eventual crash in 1987.
This crash had long-lasting effects, driving many New Zealanders to invest in property rather than stocks.
Edwards notes how the privatisation of state assets during this period created a new class of wealthy business people. The influence of money in politics became more pronounced, with business leaders playing a larger role in funding Labour’s electoral campaigns and benefiting from subsequent policies.
The era also marked a shift in political communication.
Edwards writes: “Previously, publicity staff were simply seconded from the Tourist and Publicity Department. However, Lange and Douglas were determined to have real spin doctors who would actually sell the policies and personalities of the new government.”
He cites lobbyist Mike Munro: “‘Messaging, market research, style and image would be getting just as much attention [as policymaking]’”
