Tag: Politics

According to conventional wisdom, New Zealand has done everything right in its economic policies: rolling back the slate in industry and welfare, establishing an independent central bank, repaying its public debt. Yet over the fifteen years of reform its economic performance has been dismal. New Zealand is the new Argentina, a once-rich state.

John Kay speaks about the need for seamless integration between the three roles of measurement, which he identifies as external reporting, internal control and internal analysis. His major theme is that the requirements for external reporting should be derived from the measures used for internal control which in turn should be based upon the measures used to complete internal analysis. Hence the seamless link between these three roles of measurement.

Water companies are unloved by their customers and by the market. The privatisation settlement was essentially flawed. Kelda's initial proposals have now been abandoned, but a version of them deserves to succeed.

Should scarce assets be allocated by auction to the highest bidder or by a beauty contest of suitable applicants? From FIFA's decision on where to hold the World Cup to the ways in which European governments assign mobile phone licences, the choice of process is the economic issue of the moment.

As Microsoft faces being broken up, Bill Gates should take heart from the lesson of history: the biggest beneficiaries of anti-trust break-ups have often been the companies being "punished".

The mobile phone spectrum auctions are part of a long tradition of governments deriving revenue from allocating scarce resources. In this case, no juster tax has ever been imposed.

There are three ways of regulating behaviour - and of the three, regulation by values is much under-rated.

Steel production receives a disproportionate amount of attention from politicians and the media. This obsession is deep rooted and illogical.

Regulated businesses face almost all of the strategy issues which confront conventional firms, and some additional ones that are specific to their own environment. As deregulation spreads across Europe, the gap between those firms which handle these specific issues effectively and those which respond to regulation and regulatory changes with hostility, complacency or defeatism will widen rapidly.

Regulation by rules is all very well; regulation by values is indispensable.