Cunliffe on Key and Cunliffe

The Herald reports:

Compare his and Key’s training and Cunliffe says there is a significant difference in their ideals despite similar boyhood backgrounds.

“There is a clear difference in the way that we think based on our professional training. He’s spent most of his life as a trader, which is by definition taking a series of bets on short-term positions, whereas my training at BCG [Boston Consulting Group] was in strategy … working back from your desired future to what you do tomorrow to try to get you on the best path.

One may nor may not agree with how Cunliffe positions himself and Key – one short-term and the other strategic. But let’s assume they’re correct.

Key is a chief executive type Prime Minister. He certainly does have a direction he pushes the country in, but his focus is in dealing with the multitude of problems that arise every week and month, and finding solutions to them. And to a degree, a lot of government is about trying to fix problems.

Cunliffe says he would be more focused on a strategy for NZ as a whole. That could well be true. But I’m sceptical of how well a country reacts to a top down strategy.

The reality is we are a small player in the world, and much of what happens in NZ is the result of forces well beyond our control. Also a country is not a company. The PM can’t decide for every single business what they should be doing. Hundreds of thousands of business owners and managers will be making those decisions for their own companies.

Now a Government can come in and say we have a strategy for NZ. It can be the Greens saying we’ll invest billions into a global renewable energy industry. It can be Labour saying they want forestry and dairy to sell more high value products than raw products.

But are Governments the best people to decide? We sell what people are willing to buy off us. I have a fair degree of faith that if there was money to be made in selling windfarm technology to the world, or finished wood products, rather than logs, then there would be dozens of Kiwi companies doing just that.

So as someone sceptical of the power of Government, I don’t see it as a bad thing to have a Prime Minister who isn’t trying to force his strategic vision on NZ businesses – but instead focus on removing roadblocks as they emerge.

If people really convinced they have the right strategy for NZ businesses, then I’d rather they go and set one up themselves, rather than try to impose a strategy on other businesses.

Also Rodney Hide points out a key ingredient of being a trader:


Comments (40)

Login to comment or vote

Add a Comment

%d bloggers like this: