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IB DP History Study Notes

20.17.4 Government Policies and Achievements in New Zealand (1945-2005)

This detailed examination covers the key policies and achievements of New Zealand governments from the end of the Second World War to the early 21st century, focusing on the tenures of Fraser, Holyoake, Muldoon, Lange, and Bolger.

The Fraser Era (1945-1950)

Expansion of the Welfare State

  • Social Security Act of 1938: Peter Fraser played a significant role in enhancing New Zealand's welfare state. The Act provided comprehensive social security and introduced a universal healthcare system, a pioneering move in the global context.
  • Education Advancements: Fraser's government invested heavily in education, expanding state-funded schooling, which was crucial in raising educational standards and accessibility.
  • State Housing Initiatives: Large-scale state housing projects not only addressed post-war housing shortages but also improved living conditions, contributing to better overall societal welfare.

International Relations and Diplomacy

  • Founding of the United Nations: Fraser's involvement in the founding of the United Nations marked New Zealand's commitment to global cooperation and diplomacy.
  • Support for Post-War Europe: His administration contributed to European post-war reconstruction, showcasing New Zealand's growing role in international affairs.

The Holyoake Years (1960-1972)

Economic Management and Agriculture

  • Stable Economic Growth: Keith Holyoake's government is credited with maintaining a stable economy, characterised by low unemployment and consistent growth, largely driven by agricultural exports.
  • Support for Agriculture: The government's agricultural policies, including subsidies and investment in agricultural research, bolstered the sector, crucial for the country's economy.

Defence and Foreign Policy

  • ANZUS Treaty: The signing of the ANZUS Treaty under Holyoake's leadership aligned New Zealand closely with Australia and the USA in defence matters, a significant move during the Cold War era.

Muldoon's Tenure (1975-1984)

'Think Big' Projects and Economic Challenges

  • Industrial Development: Robert Muldoon's 'Think Big' strategy focused on large-scale industrial projects, particularly in energy, aimed at making New Zealand self-sufficient in energy production.
  • Inflation and Public Debt: Muldoon's tenure was marred by economic challenges, including high inflation and increasing public debt, exacerbated by global economic factors like the 1979 oil crisis.

Social Policy Continuation

  • Welfare State Maintenance: Despite economic difficulties, Muldoon's government maintained a commitment to the welfare state, ensuring continued support for social security and healthcare.

The Lange Administration (1984-1989)

Comprehensive Economic Reforms

  • Shift to Free-Market Economy: David Lange's government implemented significant economic reforms, transitioning to a free-market economy. This included deregulation, privatisation, and the reduction of trade barriers.
  • Public Sector Reforms: The Lange administration reformed the state sector to increase efficiency and reduce government spending.

Nuclear-Free Policy

  • Nuclear-Free Zone Declaration: Lange's government's anti-nuclear stance, culminating in the 1987 Nuclear Free Zone Act, was a significant move that emphasised New Zealand's sovereignty and commitment to peace.

The Bolger Government (1990-1997)

Economic and Social Reforms

  • Privatisation and Economic Restructuring: Jim Bolger's government continued with economic restructuring, including further privatisation of state assets and reform of the welfare system.
  • Labour Market Reform: The Employment Contracts Act 1991 fundamentally altered New Zealand's labour market, shifting the balance of power in employer-employee relations and reducing the influence of unions.

Indigenous Rights and Treaty of Waitangi

  • Waitangi Tribunal Powers Expansion: Bolger's era was significant for expanding the powers of the Waitangi Tribunal, allowing it to address historical grievances of the Māori people. This was a crucial step in the process of reconciliation.

Foreign Policy Reorientation

  • Focus on Asia-Pacific Relations: Bolger's tenure saw a strategic shift in foreign policy towards strengthening ties with Asia-Pacific nations, recognising the region's increasing economic significance.

Each leader's tenure reflects their response to both domestic and international challenges, shaping New Zealand's socio-economic and political landscape. From the consolidation of the welfare state to significant economic reforms and a focus on indigenous rights, these periods highlight the evolving nature of governance in New Zealand. Understanding these changes provides a comprehensive view of the country's post-war development and its position in the global community.

FAQ

David Lange's government, starting in 1984, initiated transformative economic reforms, shifting New Zealand from a protectionist, highly regulated economy to a more liberalised, market-oriented one. Key changes included the removal of many subsidies, tax reforms, deregulation of financial markets, and significant privatisation of state assets. These reforms were aimed at modernising the economy, making it more competitive and efficient. However, they also led to increased unemployment and socio-economic disparities, sparking debate over their social impact. Lange's tenure marked a turning point in New Zealand's economic policy, laying the foundation for a more open, market-driven economy.

The Employment Contracts Act 1991, introduced by Jim Bolger's government, had profound implications for New Zealand's labour market. This Act dismantled the previous collective bargaining system, replacing it with individual employment contracts. It reduced the influence of unions, leading to a more decentralised and flexible labour market. While it increased employment flexibility and was seen as a move to a more modern labour market, it also led to a decline in union membership and collective bargaining power. This shift had a significant impact on the nature of employment relationships in New Zealand, fostering a more individualistic approach to labour relations.

Under the leadership of these Prime Ministers, New Zealand's approach to indigenous rights evolved significantly. Early leaders like Fraser and Holyoake primarily focused on integrating Māori into a Europeanised New Zealand, often overlooking specific indigenous rights. However, from the 1970s onwards, there was a gradual recognition of Māori rights and grievances. Muldoon, despite his conservative stance, maintained welfare policies supporting Māori. Lange's era brought more open acknowledgment of Māori issues, but it was under Bolger's government that significant steps were taken with the expansion of the Waitangi Tribunal’s powers. This shift marked a move towards genuine engagement and reconciliation with Māori rights and grievances.

During the Cold War, Keith Holyoake's foreign policy was characterised by a pragmatic balance between maintaining traditional Commonwealth ties and aligning with the United States for security reasons. A significant feature was New Zealand's involvement in the ANZUS Treaty, which reflected a strategic shift towards US alliance amidst the Cold War tensions. Holyoake also navigated the complexities of the Vietnam War, contributing troops but in a non-combatant capacity, which demonstrated a diplomatic balancing act between supporting allied commitments and maintaining national consensus. His approach was one of cautious alignment, weighing New Zealand's security needs against its independent foreign policy aspirations.

Peter Fraser's government played a crucial role in establishing New Zealand's post-WWII international presence. As a founding member of the United Nations in 1945, Fraser's leadership signified New Zealand's commitment to international cooperation and peacekeeping. This involvement marked a shift from a dominion status to an independent voice on global issues. Fraser's advocacy for small states' rights at the UN and his involvement in the formation of UNESCO and FAO reflected a vision of a proactive, globally engaged New Zealand. This era laid the groundwork for the country's future foreign policy and international relations.

Practice Questions

Evaluate the impact of Robert Muldoon's 'Think Big' projects on New Zealand's economy and society.

Robert Muldoon's 'Think Big' projects, initiated in response to the 1970s oil crisis, aimed to make New Zealand energy self-sufficient and stimulate industrial growth. However, their impact was mixed. Economically, these projects increased public debt and failed to yield immediate benefits, contributing to high inflation. Socially, while they provided short-term employment, the long-term benefits were less tangible. The 'Think Big' projects demonstrated the complexities of state-led industrialisation in a small economy, highlighting the challenges of balancing economic aspirations with fiscal realities.

Discuss the significance of Jim Bolger's policies towards the Māori people and the Treaty of Waitangi.

Jim Bolger's tenure marked a significant shift in the government's approach towards the Māori people and the Treaty of Waitangi. The expansion of the Waitangi Tribunal's powers under Bolger's leadership was a landmark policy, allowing for the examination and redress of historical grievances. This move towards reconciliation and recognition of indigenous rights was pivotal in New Zealand's history. It symbolised a growing awareness and respect for Māori culture and rights, and set a precedent for future governments to continue addressing historical injustices, thus reshaping the nation's approach to its indigenous history and people.

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