INTRODUCTION

This paper is intended as an introduction to the topic of public policy. Contributing to the development of good public policies for New Zealand is central to the mission of the New Zealand Business Roundtable.

Good institutions and policies typically dominate other factors in determining the economic performance of countries. Improvements to institutions and policies explain much of the prosperity of Western nations since the Industrial Revolution and the rise of countries such as China and India today.

New Zealand's earlier prosperity owed much to an environment of general economic freedom and a generally observed rule of law. Its economic performance deteriorated for much of the twentieth century with the adoption of policies that restricted economic freedoms, and has improved in the past two decades as many of those mistakes were corrected.