Is New Zealand a banana republic?

Is New Zealand becoming Banana Republic?

Banana republic. A very non-PC phrase describing a small country with a narrow export range and questionable governance.

It helps if the country is largely controlled by foreign corporations and/or a corrupt ruling class.

Add in some extreme wealth inequity, and a banana republic is born.

Is this where NZ is heading?

To be fair, the latest Government elected in 2023 has the accolade of inflicting the worst defeat of a sitting Government since the introduction of MMP in 1996. This is not meant as support for this ruling party, it merely highlights the previous governments rapid demise.

Since that amazing election win, New Zealand has enjoyed high inflation, government cuts in all the wrong places, cost of living crisis, (before the fuel crisis), the financial outlook placed under watch by two separate credit agencies, and downgraded from "stable" to "negative". Obviously, not the mandate the NZ public gave at the time of election.

Now the Frankenstein coalition of three, that is National, NZ first and Act Parties, seems to be fracturing. Like those before, it's simply a hangover from the introduction of MMP which has led to questionable governance and more complicated elections for 30-years.

And what of NZ's exports? The dairy industry makes up for around one third of total exports from NZ. Food and forestry are the next largest. All in all, the umbrella of "agriculture" makes up more than 70% of NZ's exports.

Analysis shows that New Zealand's primary industries like these are being purchased at an alarming rate. Almost 460,000ha shifted away from New Zealand control in just a 11-year period. That's an area roughly equivalent to the largest city, Auckland.

Add to the picture, the historic sacrifice of NZ government assets such as rail, post, electricity, telecommunications, oil & gas on the altar of privatisation.

These, my friends are the signs of a true banana republic.

Let's recap.

Small country - tick

Tiny Export Range - tick

Questionable governance or leadership tick and tick

Largely amount of foreign ownership - tick