Matt McCarten’s piece in the Herald last weekend once again laments the passing of waterfront unionism and 1950s style welfare. But it teaches us nothing at all about the real reasons why the exodus to Australia continues unabated, nor about the real challenge that lies ahead.
Our kids aren’t leaving because welfare got dismantled, nor even because silly old men say dumb things in public sometimes. They are leaving because successive governments of all hues have consistently failed to create and pursue an overriding grand vision that diversifies the NZ economy away from relatively low value agricultural commodities and tourism towards applied science, technology and value added services. They are also leaving because we live in a much more open and global society than the one he longs for.
I agree with McCarten that concerted attempts to lower wages for youth are misguided. We actually need to increase per capita income – across the board. That means creating more opportunities to generate wealth and it means cultivating a highly educated workforce that thrives on such opportunity and has a sense of purpose. We can’t compete on size, so we must compete with our brains and our wit instead.
I believe New Zealand is already at a cross roads. Whilst on the one hand we have recently suffered the worst recession and most devastating natural disaster of our lifetimes, we also exist at a time in history when two huge global economic powerhouses are emerging on our doorstep. Instead of lamenting the loss of skills to Australia, we should be working in close partnership with our western cousins to build global companies that are capable of taking our talent into these developing markets. Parting the waters of the Tasman Sea need not be a negative.
Our children have become the first generation of global citizens that have been digitally connected since birth. It may not matter that they reside in Sydney but commute to an office in Auckland or Shanghai. What matters is that we instill a deep desire to build something that creates value for New Zealand. Kiwis should not be discouraged from going global, they should be emboldened. Next week I’m heading to the Ice Ideas conference. I’m looking forward to being inspired by fellow entrepreneurs who have done exactly that.