NZ Introduced New Tool to Measure Economic Success

New Zealand is planning to gauge its economic growth through cultural, environmental and social factors, which is the first country to implement such measures. NZ Prime Minister Jacinda Ardern mentioned in her first major public speech in 2018, that the government is working out for further plans aside from child poverty measures reported this week.

The plan would be included in the 2019 budget, introducing new instrument and framework about the welfare of the Kiwis which will be used to measure the success of NZ economy. As of this writing, the economic progress of New Zealand is assessed using the GDP figures. Nevertheless, OECD and the International Monetary Fund (IMF) encourages different countries to mull over new but significant components that makes an economy progressive, apart from a strong balance sheet. Ardern and Finance Minister Grant Robertson aimed to be the first one to perform to that order. Moreover, the Treasury is working at present in order to set down a "living standards framework".

It is expected that New Zealand would likely be the first country to evaluate bids for government budget versus new standard that could determine the impact of expenditures toward the GBP as well as to the “natural, social, human, and possibly cultural capital.”

In her speech last Thursday night at Wellington’s central church, PM Ardern presented her objectives for child poverty issues. While on Wednesday, she mentioned that she is planning to write into law these advanced measures which is beneficial for her Labour-led Government and to future administration in terms of assessing child poverty.