Rogernomics on trial

Press, 27 June 1987, Page 23

Rogernomics on trial

■ AQfiWMNMfc* -• ~ M ■ TfrtfW 41 - Way? By Simon Caffn*. Pitmen, IM7. 184 p/t SOM (pSfWtbock).

Oliver Riddell

It is hard to imagine anything more timely than a layman’s guide to Rogernomics, given the upheavals of the last three years and an approaching General Election. Unfortunately this book is not such a guide. Its many merits are spoiled by two flaws. First, the author has not written an explanation; he has written a Second, he has identified Rogernomics with the person of Roger Douglas. The first part of the book is a biography of the Minister of Finance and although many influences are mentioned it is clear that Roger Douglas is perceived to be the true architect of Rogernomics. «>.... That may be a convenient way of viewing things, but it is an oversimplification. It overlooks the political input from David Lange, Richard Prebble, Michael Bassett, and a number . of their advisers. It overlooks' the technical input from David Caygill, Peter Neilson, Trevor de Cleene, and a number of their advisers. ' “Rogernomics” is as much a trap for. those seeking to understand this Government as “Muldoonlsm” was for those trying to understand the last Government. It is a trap into which Mr Collins has fallen, although probably because he is trying to simplify rather than because he himself does not understand. Having said that, there is much in the book to inform. Mr Collins has written a personal perspective of Rogernomics, not an analysis and critique.

The author is a journalist, specialising in politics and economics for the “New Zealand Herald” in the press gallery in Parliament. He took

f ' ■ ■■ V. ■■ three months off work at the start of this year to finish the book. The first section of toe book looks kt Rager Douglas, and how his economic theories ; became: incorporated late Government policy virtually overnight in the face of the currency crisis of election week. The second, section is a; more analytical and looks at what a “’market-led” economy is and how Labour has tried to introduce one

while staying in touch with political and social imperatives. The final section is an evaluation. This looks at how Rogernomics has worked, at comparisons with oversees experience, and what the alternatives are. Because Collins thinks Rogernomics is not working and cannot work, it follows that these alternatives are viewed favourably, even though they are theoretical alternatives being compared wtth practical reality. In the end, the author tries to have his cake and eat it too. He says Roger Douglas has made New Zealand, a better society by removing most of the old controls and opening It up to the world. u Against that he says that in going beyond that to abandon the Government’s proper role of encouraging jobs and economic growth, and increasingly to withdraw from direct promotion of a more equal society, Rogernomics is not working, is morally wrong, and is politically impossible. This work is brimming with intelligence, is snappily written and easily read, but lacks the broad leavening of common sense needed to understand economic management by politicians. New Zealand is still awaiting a layman’s guide to Rogernomics. In Mr Collins’s book it has an interpretation. Perhaps it was too. soon to tty to see Rogernomics in perspective.