OECD scores NZ Government highly

November 16th, 2013 at 12:00 pm by David Farrar

The OECD has published ratings for its members governments. The overall data is pretty good for New Zealand. Some highlights:

  • Citizens rate government satisfaction 10% higher than average
  • ICT expenditure by Govt is highest in OECD at 2%
  • Trust in Government up 2% since 2007 (down 5% for overall OECD)
  • Income inequality (Gini coefficient) reduces from 0.45 to 0.32 after tax and welfare transfers.
  • Education performance on PISA is 521 compared to OECD average of 495 despite average expenditure per student of US$70,100 compared to OECD of $83,500.
  • Govt employees make up 9.7% of labour force compared to OECD of 15.5%
  • Women are 29% of Ministers compared to 25% for OECD
  • Confidence in government is 61% (OECD 40%), Police 83% (72%), Education 71% (66%), Health care system 83% (71%) and Justice system 58% (51%)

On the not so good side:

  • Deficit at 7.5% of GDP is higher than OECD average of 3.5%. But this is 2010 data which includes earthquake. Still shows how important it is to reduce and eliminate the deficit.
  • Government senior managers paid $397,000 on average compared to $232,00 OECD average (in US$ PPP)!

 

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15 Responses to “OECD scores NZ Government highly”

  1. wikiriwhis business (4,019 comments) says:

    NZ is the most taxed nation in the OECD.

    Obviously we feeding fat cats somewhere so we get the kudos

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  2. Graeme Edgeler (3,289 comments) says:

    ICT expenditure by Govt is highest in OECD at 2%

    Someone call the taxpayer union!

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  3. wikiriwhis business (4,019 comments) says:

    ‘taxpayer union’

    love it !

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  4. adamsmith1922 (890 comments) says:

    Why is ICT at 2% seen as good. This needs to be set against a value/quality benchmark not a $ spend benchmark. NZ govt is littered with ICT stuff ups eg INCIS, Novopay, UFB?,privacy breaches etc

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  5. MT_Tinman (3,204 comments) says:

    Women are 29% of Ministers compared to 25% for OECD

    Why is this positive?

    Surely the only measure that can be seen as positive is “Best person for the job”.

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  6. vibenna (305 comments) says:

    There may be a technical problem in comparing the deficit (and taxes for that matter). Our conservative economic statistics means we don’t count the black market, so our GDP is understated. That means anything calculated as a percentage of GDP, such as tax, government expenditure, debt and balance of payments, is overstated. The result is unnecessarily reduced confidence in NZ.

    Let’s ditch the conservatism, and measure GDP the way the Australians and the Italians do. If we could see the true picture, it may help stimulate investment and improve our credit rating.

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  7. Simon (727 comments) says:

    Over half of OECD governments are bankrupt or these countries have massive structural unemployment. ECB has just announced massive money print to keep up Japanese & US money printing.

    Having a good government in relation to other OECD countries is a bit like winning the beauty pageant at the Labour Womyns conference.

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  8. bhudson (4,740 comments) says:

    That’s odd. One of the Cunliffes was on telly recently (The Nation IIRC) claiming the data he had was that the Gini coefficient had worsened.

    Mind you, I suppose if you are leading a ragtag bunch of muppet castoffs, struggling vainly to find some positive acceptance in the electorate, then a reduction in the Gini coefficient would seem a worsening.

    Or he could have been talking out of both sides of his mouth. Again.

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  9. Graeme Edgeler (3,289 comments) says:

    That’s odd. One of the Cunliffes was on telly recently (The Nation IIRC) claiming the data he had was that the Gini coefficient had worsened.

    The information above does not say otherwise.

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  10. wreck1080 (3,923 comments) says:

    So, why do our govt senior managers get paid so much?

    Especially considering NZ is a low wage economy, and people move here for lifestyle rather than pay!!!! This is shameful greed .

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  11. wiseowl (899 comments) says:

    Government senior managers and local government managers are all overpaid bigtime.

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  12. kiwigunner (230 comments) says:

    So we spend less than others on education but perform better than the majority. Wow, who would have thought?

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  13. Samuel Smith (276 comments) says:

    NEOLIBS TAKE NOTE: Education performance on PISA is 521 compared to OECD average of 495 despite average expenditure per student of US$70,100 compared to OECD of $83,500.

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  14. orewa1 (410 comments) says:

    - “So why do our senior govt managers get paid so much?”

    Because their political masters are paid too much. The two groups have a vested interest in maintaining this because each becomes justification for the other. Most politicians (with a handful of notable exceptions) are paid at least double what they could hope to earn elsewhere. And far too many senior public servants are imported at high cost only to do a mediocre job – look at education and health.

    A 3 year freeze on all central and local govt salaries over $100k, led by politicians, would have a dramatic impact on relativity. Very, very few would chuck their roles in response, and it would not result in any meaningful reduction in services.

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  15. HB (323 comments) says:

    I didn’t understand the framing of the Government 2% ICT spend as positive either.

    Look at the Novopay stuff-up leading to much greater expenditure than what was necessary.
    Also our small population meaning we don’t get the economies of scale that a larger country would get.
    Or that in a larger country the government is not having to spend on certain things because the state government is responsible for it. For example, still thinking of the education payroll, in the US central government would not be responsible for this.

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