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April 18, 2008

It happens slowly----the effects of globalization. Thus two of New Zealand's best-known firms, Fisher & Paykel Appliances and ANZ, are moving jobs to other countries. It's a familiar story, one that reverberates in the US presidential primaries and Australia.

Leunig.jpg Leunig

The NZers cannot expect manufacturing or call centres to remain. The South Island economy is dependent on the old pastoralism and the new international tourism and the latter will grow if it develops high quality services. Otherwise it will fall into a black hole.

| Posted by Gary Sauer-Thompson at 7:48 AM | | Comments (11)


And the lackwits in Canberra haven't got a clue about mounting an attack on this flight of jobs. I thought Cardboard Kev had a magic wand.

Rumpole, Jobs that can be outsourced will be. A new equilibrium will be found. No appeals to government or nationalism will stop this.

Cam is right. You can see the changes in the NZ economy--and the way it has diversified into services for international tourists. To be successful it needs wilderness with an international appeal and good quality services for the different levels of international tourism---from the top end to the backpacker end.

The fact that some of the top campsites are wirelessed is an indication of the services being provided.

Call centres are the sweatshops of the 21st century

Rumpole QC,
I thought that the Rudd Government was addressing the flight of jobs through persuading the car companies (ie.,Toyota) to invest in green cars.The AFR rants about this kind of industry policy.

Gary, You can see the changes in the NZ economy

The only things that have brought jobs back is either a lack of quality from out-sourcing or the fear of a loss of institutional knowledge. I interviewed for two jobs last year that were being re-insourced for those reasons.

why doesn't Australia build up green manufacturing --eg., solar power--instead of the Germans? Australia has a natural advantage for heavens sake. It could develop the knowledge associated with green manufacturing.

A future Australian economy will be driven by our ideas and our creativity, by smart design and canny management of our intellectual property.

Gary, I think Richard Florida over-reached in his book, but many of his arguments have merit. I also think he is correct in that business follow people and need to be where they can recruit the people that will make them the most competitive. My choice of Phx and why follows Florida's thesis.

the talk in the South Island---Dunedin-- is about historical memories--the 1980s when there was a flight of skilled tradespeople to Australia when tariffs on manufactured goods were reduced.

The business people say that the city is left with a shrinking rate base and has a future as a great retirement village. They have not heard of Richard Florida in the Southland. They are talking about wind farms and green manufacturing; not the creative economy despite the success of Lord of the Rings, or the pressing need for IT.

they haven't heard of Richard Florida in Southland. They are caught up with their historical memories about skilled tradespeople having to leave for Australia when the tariffs were lowered on manufactured imports in the 1980s. They--the media commentators--see Dunedin's future as one with a declining rate payer base and becoming a giant retirement village.

There is little talk about the creative economy despite the success of Lord of the Rings and the pressing need for IT. They are still talking about the transition from dialup to broadbandon theTV.