Matter of Opinion
All politics is local
Localism. Devolution. Community. Words underpinning much of the National-ACT-NZ First coalition's agenda. The NZ Initiative, a think tank, even described localism as the "common thread" linking the parties. But from whence do the ideas spring?
Political parties of all stripes added localism to their policy toolkit in the 21st century. Despite different ideology, localism shares some common aims, which we reduce to:
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re-building trust in government institutions and democracy itself – these aims often stem from the perceived alienation and remoteness attributed to globalisation; and
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introducing innovation and citizen choice in the delivery of public services by moving away from one-size-fits-all centralised services to services designed for and delivered through the community.
For example, in the UK both Gordon Brown (New Labour) with "Building Britain's Future" and David Cameron (Conservative) with the "Big Society" championed localism to drive innovation in public services while also hoping to wash away the sour taste of the Global Financial Crisis and its attendant scepticism about globalised finance. These initiatives foundered on the reef of Brexit, although some notable legacies live on in city-level devolution to Birmingham, London, and Manchester.
In Aotearoa New Zealand contemporary localism also aims at better public services and trust in government, while sitting in our unique context. There is the long-running centralising tendency, more pronounced than most societies, that goes back to 1876 when Sir Julius Vogel established a strong unitary state by abolishing provinces. We see the legacy of such centralism today in funding for tiers of government. As reported in February 2024 by S&P, a rating agency, local government rates today amount to roughly the same percentage of GDP as a century ago, whereas Crown revenues expanded threefold over the same period.
There is the unique position of Māori, and recognition that the exercise of a degree of self-determination over government services is both warranted and needed. The devolved model of Whānau Ora commissioning is one such example, described by the PM in November 2023 as an example of local devolution. Indeed, among some tense politics between Māori and the coalition government, devolution to Māori could build a tangible policy bridge that delivers better-designed services and results for Māori citizens.
And localism likely comes as a reaction to new centralised agencies established by the previous Labour government, such as Te Whatu Ora | Health NZ, Te Pūkenga | NZ Institute of Skills and Technology, and water services entities under Three Waters / Affordable Water.
The new-found spirit of localism and devolution finds life in the coalition government's priorities, most notably:
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Local Water Done Well. The council-led water infrastructure reform replacing Three Waters / Affordable Water.
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City and regional deals. Partnering with local governments on city and regional deals to create long-term pipelines to enable economic growth and productivity. (In practical terms, this policy seems especially consequential.)
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Rural regulation. Replacing "one-size-fits-all" rules with local decision making, to increase rural economy.
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Polytechnics. Disestablishing Te Pūkenga | NZ Institute of Skills and Technology. Replacing a single nationwide with regional polytechnics.
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Policing. Further resourcing of community policing, including Māori and Pasifika wardens, Community Patrol New Zealand and Neighbourhood Watch.
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Care of children. Oranga Tamariki expanding of care decisions relevant to community organisations.
Despite localism and devolution arguably being honoured elsewhere in the breach, such as the RMA fast-track consenting legislation which empowers the Infrastructure, Regional Development, and Transport Ministers to stand in place of local authorities, this government is clearly serious about localism and devolving services.
And localism brings a useful by-product too. Localism also represents an opportunity to shrink the core state on a long-term basis and scatter many of its component parts across the land. So the by-product of localism certainly also serves a broader centre-right aim of small government.
We will watch with real interest as localism becomes reality on the ground. You can see in our coalition policy matrix more detail on the Government's process implementing localism, and its first 100 day priorities more broadly.
But the wider world still exists…
Moving from the local to the world scene, this is the "off" year for elections in Aotearoa New Zealand. Last year's Parliamentary general election is behind us and local body elections next occur on 11 October 2025.
Fear not if elections rate as one of your preferred spectator sports. 2024 brims with national (and even supra-national) polls. Elections happening beyond these shores could cover approximately 40 percent of the world's population, 60 percent of global GDP, and 80 percent of market capitalisation. The economic, political, and security implications of this year's elections really matter. Advisory firms across the globe will pepper their client advice with hints of "sovereign risk" for many of the polls.
The jurisdictions voting this year extends to Bangladesh, Taiwan, Finland, El Salvador, Azerbaijan, Pakistan, Indonesia, Belarus, Cambodia, Portugal, Russia, Slovakia, Turkey, South Korea, Solomon Islands, North Macedonia, Dominican Republic, Panama, Lithuania, Iceland, Mexico, Belgium, Mongolia, Mauritania, the European Union, Rwanda, Brazil, Mozambique, Georgia, Uruguay, the United States, Palau, Mauritius, Ghana, Senegal, India, and (maybe) the United Kingdom.
Some of the elections are perfunctory window dressing. Russia's elections (17 March 2024) are a foregone conclusion, and must surely count as the grimmest since before the USSR's demise, set against the invasion of Ukraine and the death in prison of Alexei Navalny.
We will hear most about the US congressional and presidential election on 3 November 2024. The re-match between the octogenarian Biden and septuagenarian Trump provides for easy media coverage, which thrives off such a reductive story (and few politicians come as reductive as Trump). But we are right to care; as the world's biggest economy, second-largest democracy, largest champion of free(-ish) trade, and security guarantor for many places, the US really matters.
What we also need to watch is the health of the democracies themselves. The creeping authoritarian streaks in the US and other elections serve as cautionary tales and turn elections into winner-takes-all fights with high stakes. In such circumstances, no one can afford to lose because the losing side does not think it will ever get a fair look in again. That destroys the often over-looked secret of democracy: losers' consent. As in the side that does not win nevertheless accepts the democratic outcome.
So as we reflect on this worldwide year of elections, we should celebrate those democracies where the losing side feels they can live with the result this time and dream about next time. On that measure, we in New Zealand should take heart, reflecting not just that in 2023 power swapped between parties smoothly, but also that the parties of the outgoing government stayed at its post in a caretaker capacity for 44 days keeping the ship afloat for its successor to arrive at the helm. On that measure, we must rank as one of the healthiest democracies. Long may that continue.