New Zealand out of step on localism agenda

The question of how localism has become a more powerful idea in recent years was explored today by Dr Oliver Hartwich, Executive Director of The New Zealand Initiative, at the Local Government New Zealand annual conference today.

Localism has a strong pedigree with a focus that goes back into history. It supports a devolved model and is focused on better services, better democracy and better enablers for economic growth.

After decades of centralising government, even towards multinational organisations, many countries are now rediscovering the benefits of localism. Dr Hartwich outlined the pros and cons of going local, and lessons learned from international experiences with different local government systems.

“What we have observed over the last four centuries is a centralisation of power across the world. With very few exceptions such as Singapore, Hong Kong, Monaco or the Vatican, we are now living in a world in which cities have been relegated to a lower tier of government,” said Dr Hartwich.

“It is central government that is calling the shots, and it is central government defining the role and scope of local government.”

Dr Hartwich highlighted that New Zealand is out of step with the rest of the industrialised world.

Share of public expenditure held by local government within New Zealand is just 11 per cent. This is significantly behind the OECD average of approximately 40 per cent, and a long way behind Switzerland with 85 per cent.

“However, it is local government that provides the best insurance policy against abuses of power. Localism can create a public spirit that engages large parts of the community. It can help to keep a democratic society free, and it has clear economic advantages when it comes to the delivery of government services.”

The UK has started a reversal. Last year, police commissioners were elected locally for the first time. It was a positive and bold first step. Another example is the British government’s approach to give communities greater financial support for housing and development.

New Zealand lags behind other OECD countries in the level of investment in local infrastructure.

Dr Hartwich said that the quickest way for recovery in recession is by increasing expenditure in local, rather than national, key projects.

Summing up, Dr Hartwich said “The question is not what local government can do, the question is what we need central government for.”

ENDS

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