connecting with universities and government agencies
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Connecting with Universities and Government Agencies. Improving the Living Standards of New Zealanders - Working Together for Better Policy Advice. Policy Relevant Research & Analysis: Knowledge Hubs - Sharing, Connecting and Discussing. Girol Karacaoglu Chief Economist The Treasury . - PowerPoint PPT PresentationTRANSCRIPT
© The Treasury
Improving the Living Standards of New
Zealanders - Working Together for Better Policy
Advice
Policy Relevant Research & Analysis: Knowledge
Hubs - Sharing, Connecting and
Discussing
Girol KaracaogluChief Economist
The Treasury
CONNECTING WITH UNIVERSITIES AND GOVERNMENT AGENCIES
Joey AuCommittee Member
Government Economics Network (GEN)
© The Treasury
WHAT ARE WE TRYING TO ACHIEVE?
1. Building a database of Economics research capability, as well as ongoing research, across the public sector, universities, and research institutions in New Zealand.
2. Creating a network across all people and institutions undertaking policy relevant research with a view to enhancing the transparency and quality of policy-supporting
3. Promoting Treasury’s Living Standards Framework as a possible vehicle for collaborative work on policy design and advice.
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ABOUT GEN
The Network has three aims:
support economics training and professional development;
develop linkages between economists; and
strengthen economic advice to government.
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ABOUT GEN
© The Treasury
Joey Au
Policy Relevant Research & Analysis: Knowledge Hubs -
Sharing, Connecting and Discussing
Committee Member – GEN &
Advisor – The Treasury
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Researchers
Universities
Policy Analysts
Government Agencies
Influence policy Produce quality policy advice
Higher Living Standards
for NZers
WORKING TOGETHER FOR BETTER POLICY ADVICE & RAISE LIVING STANDARDS
KEY ATTRIBUTES OF THE CENTRE OUTCOMES SOUGHT
A ‘STRAW-MAN’ – ENHANCING RESEARCH CAPABILITY
Public Sector
TSY
MoBIE
MSD
MOE MoH
Etc.
Private Sector NZIER
BERLEtc.
Motu
Universities
Otago
Waikato VUW
Auck.Etc.
Overseas
Universities
IMF
OECD
Public & Private sector
Etc.
• Well connected, strong networks.• Ability to coach & mentor junior researchers.• Intellectually brilliant, policy focused researchers.
CENTRE OF EXCELLENCE
This is not about more funding, it is about using existing funding
and capabilities to greater effect.
Improve Co-ordination & Coherence...
Coherent programmes of long term research need to be
developed.
Increase Consistency & Standards...
Clear and consistent research standards need to be applied
and adhered to.
Lift Capability...
Stronger capability to undertake research,
commission research and interpret research.
Clearer pathways required for researchers in the public
sector.
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ONE SMALL STEP FORWARD:PRODUCTIVITY (HUB)
Combine
Collaborate
Prioritise
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ONE STEP SIDEWAYS NO VEHICLE FOR PEOPLE TO SHARE, CONNECT AND DISCUSS
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SOME PRINCIPLES
1. Share
2. Connect
3. DiscussUniversities
Government Agencies
Policy Analysts
Researchers
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KNOWLEDGE HUBS (WEBSITE): PRODUCTIVITY HUB
1. Share
2. Connect
3. Discuss
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Improving the Living Standards of New Zealanders - Working Together for Better Policy Advice
Girol Karacaoglu Chief Economist
The Treasury
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Treasury’s Vision
To be a world class Treasury
working for higher living standards for New Zealanders.
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The OECD
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© The Treasury
Distributionwithin thepopulation
and over time
Subjective Wellbeing
The Living Standards Framework
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Fundamentals – WHAT is it all about?
What is “improving standards of living” all about?
It is about increasing the freedoms of individuals to enjoy the kinds of lives they wish to live. [Amartya Sen’s concept of justice and human rights. ]
Need to focus on achieving this across society and across generations – that is what equity and sustainability are all about.
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Using LSF to Guide Policy Advice
Practical
Focused
Measureable
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Increasing Equity
Social Infrastructure
Sustainability for the Future
Economic Growth
Managing Risk
FINANCIAL & PHYSICAL
Financial WealthHousing
Infrastructure
NATURAL
ClimateBiodiversity
Water
SOCIAL
InstitutionsTrust
HUMAN
SkillsHealth
Living Standards
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A Proxy Social Welfare Function for NZ
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Key Policy Question
Instead of thinking of trade-offs between the five corners of the living standards cobweb, can we come up with policies that make these corners mutually reinforcing – so that we can create an expanding dynamic cobweb?
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0
5
10
Status quo
Policy change
Example: Educa-tion Reforms
Managing Risk
Increasing Equity
Social Infrastructure
Sustainability for the Future
Economic Growth
21Note: This is intended to demonstrate how the diagram could be used, rather than a Treasury view of the recommendations
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WHAT should be the focus of government-policy interventions (in support of market processes) – Government Roles?
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• Providing opportunities• Building capabilities• Improving incentives• Removing obstacles
Higher Living
Standards
Capabilities
Obstacles
Opportunities
Incentives
All of the above are about maintaining and building: • physical/financial capital• human capital• social capital• natural capital
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Current Policy Levers: BIM
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• Providing opportunities• Building capabilities• Improving incentives• Removing obstacles
Higher Living
Standards
Capabilities
Obstacles
Opportunities
Incentives
• growth-supporting infrastructure • support business-led R&D• work-based training• youth agenda
• welfare reform• labour market reform• tax reform
• education reform• wide access to health care• international linkages programme
• removing international trade and investment obstacles • improving economic stability• improving public-sector productivity• work on long-term fiscal strategy
All of the above are about maintaining and building: • physical/financial capital• human capital• social capital• natural capital
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Policy Tools
Fiscal Tools Government Expenditure Taxes Public Debt and Public Loans
Regulatory Tools Regulations Authorisations
Other Tools Ownership Contingent Liabilities Nudging or Cajoling
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Increasing Equity
Social Infrastructure
Sustainability for the Future
Economic Growth
Managing Risk
FINANCIAL & PHYSICAL
Financial WealthHousing
Infrastructure
NATURAL
ClimateBiodiversity
Water
SOCIAL
InstitutionsTrust
HUMAN
SkillsHealth
Living Standards
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How might we measure progress for New Zealand?
• NNI / capita
• NII position of NZ• Reducing crime rate• Reduction in social welfare dependency
• % of population below 50% of median income• Difference in the PISA score between the top and bottom 10% of students
• gross capital formation• GHG emissions tonnes/capita• % aged between 35-34 with tertiary qualifications
• World Bank government effectiveness indicator • World Values Survey: social trust indicator
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THE LIVING STANDARDS HUBGoing live 2nd April 2013 – Register in advance, email: [email protected]
© The Treasury27
Reduces intergenerational equityIncreases within generation equity
Example: Effect of a PAYGO-funded expansion of New Zealand Superannuation
Reduces investment risk Increases wage growth risk
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Example: Effect of a SAYGO-funded expansion of New Zealand Superannuation
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© The Treasury
0
1.6
Example: NZ's performance compared to the OECD
OECD av-erageNZ 2000NZ 2010
Note: This is only intended to indicate how the diagram may be used. The data involved and the methodology for con-structing the indices needs significant further work. It does not therefore represent Treasury's view of what has hap-pened over the ten years concerned.
Economic Growth
Sustainability for the future
Increasing Equity
Social Infrastructure
Reducing Risks
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Example: Living Standards Assessment: Risk Management
Method: Increasing the freedoms of individuals to enjoy desired lifestyles
Elements: Physical Human Social Natural Capital Capital Capital Capital
Risks Earthquakes Crime Welfare dependency Climate Changee.g. Floods Ill health Economic crises Biodiversity
risksEruptions Skill Deficiency Education failure ErosionInfrastructure disrepair Civic society failureWhite elephants
Mitigations Insurance Education Policy Welfare Reform Emissions Trading
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Next Steps
USE IT Encouraging various teams within Treasury to trial the framework and share
what they learn with other teams. Encouraging teams within Treasury to work with people from across the
public sector in developing and using the framework, and associated measures.
PROMOTE IT
Ongoing presentations to various audiences (universities, public sector agencies, ...) to explain the work and seek feedback.
DEVELOP IT Ongoing work to set up teams, within Treasury and across the public sector,
to progress research and measurement within each “corner” of the cobweb. Sharing what we learn by trying with all so that we can improve ways in
which we can enhance the framework for better policy guidance.
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