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Regional Economic Development: Unlocking Potential for Investment and Jobs

This article explores the importance of regional economic development in New Zealand and the challenges faced by different regions. It highlights the government's approach, successful strategies, and ongoing initiatives to support regions in increasing investment, creating jobs, and improving household incomes.

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Regional Economic Development: Unlocking Potential for Investment and Jobs

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  1. Regional Economic DevelopmentSupporting regions to increase investment, jobs and household incomes 28 November 2017 Pip JamiesonMinistry of Business, Innovation and Employment

  2. New Zealand’s economy Strong economy -> prosperity, higher wages, resilience, wellbeing Factors: • Workers & businesses face transitions • ALL regions need to reach their potential • Ensure potential of ALL people • Iwi, Maori Authorities, Land Incorporations significant asset bases • Performance of local and central government • Diversification of economic activity • Shift to value add • Digital technology • Possible disruptors Auckland $93 billion Rest of New Zealand: $120 billion Wellington $34 billion Outside of Cities 1.975 million people Cities 2.717 million people

  3. Why are New Zealand’s regions important? Figure 1: Breakdown of NZ Regional GDP, 2016 • Nearly 2 million New Zealanders live outside of our major urban areas… • …and they play a crucial role in our ability to lift national earnings through exports (e.g. over 50% of NZ exports are animal and vegetable products) • Broader based growth helps build economic diversity which improves national resilience. Auckland $93 billion Rest of New Zealand: $120 billion Wellington $34 billion Outside of Cities 1.975 million people Cities 2.717 million people Figure 2: Value of NZ’s exports May 2016-17 The primary sector accounted for over half of New Zealand’s export activities in 2016. Source: Statistics New Zealand

  4. Challenges faced by regions • Globalisation pressure on regional economies • Agglomeration forces can attract resources from some regions • Ageing populations • Small regions can face inconsistent growth • Employment patterns shifting in favour of high-skilled occupations • Unemployment rates varied across regions [people don’t shift based solely on employment options]

  5. Government approach to regional economic development [in development and evolving] Focus on: • Social inclusion • Sustainability • Well-being

  6. What’s worked • Focused & well connected governance structure has been valuable • Strong leadership is critical, where it is lacking there tends to be a fragmented approach • Cross-government coordination improved • Improved inter-regional co-ordination and collaboration • Capability and capacity in regions can hinder progress • Opportunity to connect more effectively with iwi/Maori • Need to focus on broader range of policy areas and levers

  7. Regional Economic Development Minister Currently in development and evolving: • $1 billion a year Provincial Growth Fund • For critical infrastructure: • provincial roading improvements • Rail & maritime facilities • Sector-led projects, eg. tourism, aquaculture, forestry • Projects to meet eligibility criteria, eg. Creation of jobs, sustainable economic development, enhanced social inclusion.

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