An Economic History of New Zealand Essay Example

Pigs and potatoes were used as currency by the Maoris before 1840. Their economy was based on barter, with Iwi (tribes) trading goods with one another. The economy was based on subsistence. People barter for goods and services instead of using money in a subsistence economy. Iwi residing on the coast, for example, would trade fish they had caught for berries and preserved birds from Maori living inland. The trade of natural resources, rather than things for money, is the foundation of the subsistence economy. Hunting, gathering, and agriculture are all sources of revenue. The Maori people had a robust bartering system among not only their own Whanau, but also with their Iwi and other Hapu before the English immigrants came in New Zealand. This increased the quantity and success of bartering since they were able to obtain products they would not have otherwise. Tourism and dairy were not important in New Zealand at the time.

Whales were a valuable resource in Colonial times. Whales were killed for their oil (which was used in lamps and machernary), baleen (which was used to manufacture corsets and whips), and ambergris (which was used to make corsets and whips) (an ingredient used in expensive perfumes). Whale-catching became highly popular in the seas near New Zealand. Some Maori people also joined the shore whaling crew, which resulted in a massive increase in Maori and European commercial relations. In 1840, New Zealand was accepted as a British Colony. The Maori people realised they could trade with Europeans after the treaty was signed, and this became a staple in Maori - European interactions. Infrastructure (such as buildings and roads) was also critical for the new economy and society as a whole. For more than half of the nineteenth century, Maori people provided food for the settlers and helped with food exportation to Australia. During this period, dairy and tourism were not viable options.

New Zealand's dairy sector began to flourish between 1890 and 1930. Until 1920, Britain contributed up to 70% of New Zealand's total imports. This solution meets the vast majority of New Zealand's requirements. Meat and dairy exports accounted for 35% of New Zealand's overall exports by WW1. New Zealand, on the other hand, was susceptible because of its reliance on the British market; when the British economy fell in the 1920s, so did NZ's. In the mid to late 1920s, governments attempted to stimulate the economy through fiscal policy, but the Great Depression, which began in 1929 and concluded in 1930, hindered their efforts. Because New Zealand's production and export markets were undiversified, the collapse of primary sector prices had a substantial impact. The British stock market crash resulted in a huge increase in unemployment; between 1929 and 1931, New Zealand's productivity plummeted by 17%. Wool, beef, and dairy products made for 90% of New Zealand's exports between 1900 and 1945. Wool accounted for half of all exports in the early 1960s, while meat and dairy products accounted for the other quarter. However, by the 1970s, inflation in New Zealand had increased. Tourism was not a major source of income at the time, and the dairy business was a dependable source of income, but wool surpassed both.

In 1958, New Zealand reached an agreement that permitted it to reduce the preferential treatment accorded to British goods. However, it did not pursue this option because it feared losing market access, and significant levels of preferential treatment for British goods lasted until the late 1960s. Many families and households were anxious for work as the Great Depression progressed. During this time, the government did not provide enough assistance to New Zealanders, and many had to rely on charity for their livelihood. During this time, the real unemployment rate was 30%. Riots erupted around New Zealand as a result of the unemployed’s dissatisfaction. During these times, New Zealand's banking industry was critical in planning recovery and regulating the economy for New Zealanders. Increasing global prices for wool, beef, and dairy goods freed up funding for public works projects that created more job opportunities. During the years 1947-1945, the tourism industry helped New Zealand. After WWII, the country severely needed employees, thus a policy of assisted immigration was established. The New Zealand economy was growing up until 1973, when the oil shock caused a massive economic catastrophe within a year. NZ had to fight for access to Europe's historic market and partner when Britain entered the EEC in 1973. NZ needed to diversify its economy as a result of oil price shocks and Britain's entry into the EEC.

New Zealand's domestic economy was now in the midst of a "STAGFLATION" phase of economic deterioration. Following the oil shock, the oil industry's prices began to decrease in 1981, and the government's energy projects failed to provide any of the promised job prospects for New Zealanders. Due to a large quantity of "borrowing" from overseas markets to support energy projects, New Zealand faced a significant amount of governmental debt. In New Zealand, numerous techniques were used to combat inflation, including the "wage and price freeze," which was an example of price control. The Reserve Bank Act of 1989, on the other hand, was also implemented. The banking business in New Zealand was booming at the time, because combating inflation had become a top concern for the country, which had been suffering from annual inflation of 10-15 percent for more than two decades.

Dairy, animal products, logs, fruits, machinery, wine, fish, and seafood were among the main exports in the 2000s. The unemployment rate in New Zealand continued to rise, rising from 3.9 percent in June 2019 to 9.2 percent in May 2020. Tourism was New Zealand's most important export industry in 2019, accounting for 20% of the country's overall exports. The tourism business employed 14.4 percent of the total number of people working in 2019. However, the tourism business suffered a significant drop as a result of the COVID-19 lockdown. In 2017, the dairy industry in New Zealand generated 3.5 percent of the country's overall GDP. The dairy industry was also NZ's largest export sector, depending on the year. 

As you've seen, New Zealand hasn't always relied on the dairy and tourism industries for national money and jobs, until recent years, prior to the COVID-19 pandemic, which caused these businesses to plummet. As New Zealand recovered from lockdown, one of the industries that may have emerged as a crucial driver of our economic recovery was public healthcare. During the pandemic, demand for healthcare products such as hand sanitizer, personal protective equipment (PPE), and medication increased.   My belief is that the public healthcare industry will emerge as our primary driver out of lockdown in New Zealand.