Democratic Government
#9Vertical Accountability
#12New Zealand falls into the upper-middle ranks internationally (rank 12) in the category of vertical accountability.
Elections are free and fair. Parties and candidates are required to maintain accurate financial records and disclose donations. All citizens and permanent residents aged 18 or older can vote. Māori voters can choose between the general and Māori electoral rolls. The Electoral Commission operates independently, managing elections impartially.
The mixed member proportional electoral system ensures diverse social interests are represented in parliament, often leading to coalition governments. This means parties representing diverse social interests often have to collaborate. Policy differences between the two major parties, Labour and the National Party, have narrowed.
Access to government information is regulated by the Official Information Act, which includes restrictions on information relating to national security, international relations and personal privacy. Government agencies have been criticized for slow responses to requests.
Elections are free and fair. Parties and candidates are required to maintain accurate financial records and disclose donations. All citizens and permanent residents aged 18 or older can vote. Māori voters can choose between the general and Māori electoral rolls. The Electoral Commission operates independently, managing elections impartially.
The mixed member proportional electoral system ensures diverse social interests are represented in parliament, often leading to coalition governments. This means parties representing diverse social interests often have to collaborate. Policy differences between the two major parties, Labour and the National Party, have narrowed.
Access to government information is regulated by the Official Information Act, which includes restrictions on information relating to national security, international relations and personal privacy. Government agencies have been criticized for slow responses to requests.
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Diagonal Accountability
#9New Zealand falls into the upper-middle ranks (rank 9) in the category of diagonal accountability.
Media freedom is generally respected. There is typically no government censorship, although after the 2019 Christchurch attack, steps were taken to limit extremist content online, especially on social media. Journalists increasingly face online harassment. Concerns about media pluralism persist due to high levels of media ownership concentration.
Political rights like freedom of association and assembly are well-protected. Numerous individuals were arrested for participating in violent demonstrations on the issues of COVID-19 measures and climate change, but these arrests were lawful, without evidence of systematic harassment.
Business interests wield considerably more influence than organized labor. Social welfare groups exert influence through media campaigns and international court cases, framing the public debate. The environmental movement has helped drive changes in policy especially through public protest.
Media freedom is generally respected. There is typically no government censorship, although after the 2019 Christchurch attack, steps were taken to limit extremist content online, especially on social media. Journalists increasingly face online harassment. Concerns about media pluralism persist due to high levels of media ownership concentration.
Political rights like freedom of association and assembly are well-protected. Numerous individuals were arrested for participating in violent demonstrations on the issues of COVID-19 measures and climate change, but these arrests were lawful, without evidence of systematic harassment.
Business interests wield considerably more influence than organized labor. Social welfare groups exert influence through media campaigns and international court cases, framing the public debate. The environmental movement has helped drive changes in policy especially through public protest.
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Horizontal Accountability
#8In the category of horizontal accountability, New Zealand receives high rankings in international comparison (rank 8).
The independent Office of the Auditor-General is responsible for auditing the public sector, including government departments and state-owned enterprises. The Office of the Privacy Commissioner ensures compliance with privacy laws and investigates privacy breaches.
The judiciary operates independently of political influence and is not subject to interference in its decision-making process. Supreme Court does not have the authority to invalidate legislation, but governments typically comply with important decisions. Civil rights are generally robustly protected, but Māori and members of the LGBTQ+ community face discrimination.
New Zealand’s public sector is regarded as one of the least corrupt globally, with laws ensuring transparency in party financing and preventing corruption. Parliamentarians have comparatively limited resources, but possess sufficient powers to oversee the executive and help shape policy.
The independent Office of the Auditor-General is responsible for auditing the public sector, including government departments and state-owned enterprises. The Office of the Privacy Commissioner ensures compliance with privacy laws and investigates privacy breaches.
The judiciary operates independently of political influence and is not subject to interference in its decision-making process. Supreme Court does not have the authority to invalidate legislation, but governments typically comply with important decisions. Civil rights are generally robustly protected, but Māori and members of the LGBTQ+ community face discrimination.
New Zealand’s public sector is regarded as one of the least corrupt globally, with laws ensuring transparency in party financing and preventing corruption. Parliamentarians have comparatively limited resources, but possess sufficient powers to oversee the executive and help shape policy.
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Governing with Foresight
#4Coordination
#2In the category of coordination, New Zealand falls into the sample’s top group (rank 2).
The Department of the Prime Minister and Cabinet plays a key role in coordinating government policies. This goes beyond legal and technical aspects to include broader programmatic elements, ensuring alignment with government priorities. The increasing centralization of decision-making has raised concerns, particularly in contexts of crisis management.
Interministerial working groups, committees of officials and cabinet committees serve as formal coordination mechanisms. Cross-agency initiatives coordinated by single ministries have grown in response to complex problems, while informal coordination such as bilateral meetings and collaboration between ministries also support government operations.
New Zealand is highly centralized, with most public services managed by the central government, making it relatively easy to enforce national standards. The central government also engages with bodies representing local councils and Māori tribes.
The Department of the Prime Minister and Cabinet plays a key role in coordinating government policies. This goes beyond legal and technical aspects to include broader programmatic elements, ensuring alignment with government priorities. The increasing centralization of decision-making has raised concerns, particularly in contexts of crisis management.
Interministerial working groups, committees of officials and cabinet committees serve as formal coordination mechanisms. Cross-agency initiatives coordinated by single ministries have grown in response to complex problems, while informal coordination such as bilateral meetings and collaboration between ministries also support government operations.
New Zealand is highly centralized, with most public services managed by the central government, making it relatively easy to enforce national standards. The central government also engages with bodies representing local councils and Māori tribes.
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Consensus-Building
#8New Zealand performs well in international comparison (rank 8) in the category of consensus-building.
Governments rely on expert advisory groups, researchers and the Office of the Prime Minister’s Chief Science Adviser for insights on policy. However, they are not required to follow scientific advice.
Capital and labor groups are involved in policymaking through several institutionalized consultation mechanisms including select committees, public consultations and the Future of Work Tripartite Forum. The frequency of such engagement varies depending on the government in power.
The government has similar mechanisms to consult with social welfare groups. In some cases policymakers have ignored high-profile recommendations. Environmental groups have influenced policy especially through courts or public protest. The government has a strong commitment to transparency, publishing regular reports and maintaining open data portals.
Governments rely on expert advisory groups, researchers and the Office of the Prime Minister’s Chief Science Adviser for insights on policy. However, they are not required to follow scientific advice.
Capital and labor groups are involved in policymaking through several institutionalized consultation mechanisms including select committees, public consultations and the Future of Work Tripartite Forum. The frequency of such engagement varies depending on the government in power.
The government has similar mechanisms to consult with social welfare groups. In some cases policymakers have ignored high-profile recommendations. Environmental groups have influenced policy especially through courts or public protest. The government has a strong commitment to transparency, publishing regular reports and maintaining open data portals.
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Sensemaking
#4New Zealand falls into the sample’s top group (rank 4) in the category of sensemaking.
No centralized unit for strategic foresight and anticipatory innovation exists. However, the Public Service Act of 2020 requires government departments to produce long-term insights briefings every three years, exploring future trends and risks. Other government organizations also incorporate strategic foresight in their work.
While there is no legal mandate for regulatory impact assessments (RIAs), policymaking frameworks strongly encourage them. The Treasury’s guidelines outline a process that includes the analysis of economic, social and environmental impacts, as well as the involvement of stakeholders.
Sustainability reviews are not legally required, but are encouraged through the “triple bottom line” approach to RIAs. Ex post evaluation is also not mandatory, and there is no established methodology, but the OECD considers the evaluation regime to be more robust than the OECD average.
No centralized unit for strategic foresight and anticipatory innovation exists. However, the Public Service Act of 2020 requires government departments to produce long-term insights briefings every three years, exploring future trends and risks. Other government organizations also incorporate strategic foresight in their work.
While there is no legal mandate for regulatory impact assessments (RIAs), policymaking frameworks strongly encourage them. The Treasury’s guidelines outline a process that includes the analysis of economic, social and environmental impacts, as well as the involvement of stakeholders.
Sustainability reviews are not legally required, but are encouraged through the “triple bottom line” approach to RIAs. Ex post evaluation is also not mandatory, and there is no established methodology, but the OECD considers the evaluation regime to be more robust than the OECD average.
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Sustainable Policymaking
#18Economic Sustainability
#17New Zealand falls into the sample’s middle ranks (rank 17) in the category of economic sustainability.
The country lacks a comprehensive national circular-economy strategy with fully defined goals. Under current investment plans, there is a significant infrastructure gap over the next 30 years, exacerbated by climate change. The government has set emissions-reduction and renewable-energy targets, but lacks a detailed roadmap for a fully decarbonized energy system.
Despite education and training programs, the labor market features shortages of skilled workers in key sectors. There are legal protections against workplace discrimination, but significant pay gaps persist for Māori and Pasifika workers. The government in 2023 has sought to roll back some previously passed workers’ rights provisions.
The tax system relies heavily on a regressive goods and services tax and personal income tax. The government has sought to diminish tax disincentives to work and investment. Environmental taxes aim to internalize negative externalities. Budgets use tools such as medium- and long-term projections and performance-based budgeting to promote sustainability.
The country lacks a comprehensive national circular-economy strategy with fully defined goals. Under current investment plans, there is a significant infrastructure gap over the next 30 years, exacerbated by climate change. The government has set emissions-reduction and renewable-energy targets, but lacks a detailed roadmap for a fully decarbonized energy system.
Despite education and training programs, the labor market features shortages of skilled workers in key sectors. There are legal protections against workplace discrimination, but significant pay gaps persist for Māori and Pasifika workers. The government in 2023 has sought to roll back some previously passed workers’ rights provisions.
The tax system relies heavily on a regressive goods and services tax and personal income tax. The government has sought to diminish tax disincentives to work and investment. Environmental taxes aim to internalize negative externalities. Budgets use tools such as medium- and long-term projections and performance-based budgeting to promote sustainability.
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Social Sustainability
#14New Zealand falls into the sample’s middle ranks (rank 14) with respect to social sustainability.
Education spending is below the OECD average. The tertiary sector is underfunded, and lower-level teachers have protested over poor pay and working conditions. PISA test scores have recently shown declines, with Māori and Pasifika students’ performance falling more strongly.
Social spending in New Zealand is slightly below the OECD average. The new government has indicated it would reduce it further. Housing affordability and child poverty remain serious issues. The healthcare system offers high-quality universal care. A Māori Health Authority was established to address poorer health outcomes in this community, but is expected to be abolished.
Paid parental leave lags policies elsewhere in the OECD. Subsidies are provided for early childhood education, but childcare costs remain extremely high. The pension system largely prevents poverty among the elderly. Immigration policies focus on skilled migrants, with considerable support provided for settlement and integration.
Education spending is below the OECD average. The tertiary sector is underfunded, and lower-level teachers have protested over poor pay and working conditions. PISA test scores have recently shown declines, with Māori and Pasifika students’ performance falling more strongly.
Social spending in New Zealand is slightly below the OECD average. The new government has indicated it would reduce it further. Housing affordability and child poverty remain serious issues. The healthcare system offers high-quality universal care. A Māori Health Authority was established to address poorer health outcomes in this community, but is expected to be abolished.
Paid parental leave lags policies elsewhere in the OECD. Subsidies are provided for early childhood education, but childcare costs remain extremely high. The pension system largely prevents poverty among the elderly. Immigration policies focus on skilled migrants, with considerable support provided for settlement and integration.
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Environmental Sustainability
#23In the category of environmental sustainability, New Zealand performs relatively poorly in international comparison (rank 23).
The Zero Carbon Act aims for climate neutrality by 2050, setting targets for reducing long-lived greenhouse gases and biogenic methane. Governments must set emissions budgets every five years, aiming for targets consistent with limiting global warming to 1.5 degrees Celsius above pre-industrial levels.
These measures have been criticized for not being legally enforceable, and for setting separate targets for agriculture, which contributes 48% of New Zealand’s total greenhouse gas emissions. Observes say policies are not consistent with hitting the 1.5 degree target.
Air pollution, drinking water quality and agricultural runoff remain occasional concerns. A strong set of biodiversity strategies aims at conserving native species, habitats and ecosystems. The country advocates internationally for the environmental and climate concerns faced by small island states.
The Zero Carbon Act aims for climate neutrality by 2050, setting targets for reducing long-lived greenhouse gases and biogenic methane. Governments must set emissions budgets every five years, aiming for targets consistent with limiting global warming to 1.5 degrees Celsius above pre-industrial levels.
These measures have been criticized for not being legally enforceable, and for setting separate targets for agriculture, which contributes 48% of New Zealand’s total greenhouse gas emissions. Observes say policies are not consistent with hitting the 1.5 degree target.
Air pollution, drinking water quality and agricultural runoff remain occasional concerns. A strong set of biodiversity strategies aims at conserving native species, habitats and ecosystems. The country advocates internationally for the environmental and climate concerns faced by small island states.
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