CHANGING CONSUMPTION PATTERNS

Decision-Making: There is no single agency that focuses specifically on sustainable consumption and production,
but a variety of agencies deal with related issues. The Ministry for the Environment and the Ministry of Foreign
Affairs and Trade are the coordinating agencies for the purposes of CSD liaison and communication. Other central
agencies involved with sustainable consumption and production issues are the following: Department of
Conservation (DOC), Energy Efficiency and Conservation Authority (EECA), Land Information New Zealand
(LINZ), Ministry of: Fisheries (MFish); Agriculture and Forestry (MAF); Commerce (MCM); Research Science
and Technology, (MoRST); and Transport (MoT). The local government is New Zealand is responsible for
implementing the Resource Management Act. This legislation aims to promote sustainable management of natural
and physical resources. Both regional councils and territorial authorities are directly elected and set their own rates.
Functions of territorial authorities include land use consents under the Resource Management Act, noise control,
litter control, roading, water supply, sewage reticulation and disposal, rubbish collection and disposal, parks and
reserves, libraries, land subdivision, pensioner housing, health inspection, building consents, parking controls and
civil defence. Functions of regional councils are generally more limited and include management of air quality,
bulk water supply, regional roads and parks and public passenger transport planning.
There are several strategies and policies, and legislation, that promote sustainable consumption and production
patterns including: Environment 2010 Strategy, Resource Management Act 1991, Waste Management Policy,
Energy Efficiency Strategy, Fisheries Act 1996, Sustainable Land Management Strategy, and Hazardous
Substances and New Organisms Act 1996. Legislation and regulations for a number of minimum energy
performance standards have been formulated but await an opportunity in the legislative programme. In addition,
the following codes or practice, standards and guidelines apply: The ISO 14001 series environmental standard, the
European Union's Eco-management and Audit Scheme (EMAS), and the British Standard Specification for EMS
(BS 7750), Cleaner production guidelines and Packaging industry code of practice. Consumer protection is
provided through a series of legislation such as the Fair Trading Act, Commerce Act, Consumer Guarantees Act,
and the Unsolicited Goods and Services Act. Among the specific policy and economic instruments in this area are
the following: Polluter pays, Road user charges, and Climate change economic instruments.
New Zealand offers a variety of opportunities for the participation of major groups in the formulation of policy and
the development and operation of legislation. These include the use of public discussion documents, public
meetings, hui, and other forms of consultation during the formulation of policies, strategies, and plans; and written
and oral submissions to parliamentary committees and members of parliament during the formulation of legislation.
Programmes and Projects: An example of a related project is The Government Energy Efficiency Leadership
Programme (GEELP), which was launched in September 1993. The programme seeks to reduce energy costs within
the public sector and provide a role model for the industrial and commercial sectors to follow. Progress is
monitored through the use of Key Performance Indicators rather than quantitative analysis. The performance
indicators include the appointment of an energy manager, data reporting, monitoring and targeting, implementation,
an energy management plan, and staff education.
Status: The Government's Environment 2010 Strategy contains a framework of overarching goals for the
environment. These goals are qualitative, not quantitative. All sustainable production initiatives in industry in New
Zealand are undertaken on a voluntary basis. Central and local government agencies commission a variety of
research activities relative to sustainable consumption and production to meet their particular information
requirements (for example to assist the development of environmental policies). Financial constraints may affect
the ability of agencies to implement effective programmes to address issues related to promoting sustainable
consumption and production. However, a more binding constraint is likely to be that businesses see the benefits of
more sustainable production processes accruing primarily to the community rather than to them, while they face the
direct costs of putting such processes in place.

Capacity-Building, Education, Training and Awareness-Raising: The Government's environmental education
strategy provides the framework for educating the community to take up environmentally sound behaviour,
including that relating to production and consumption. The Energy Efficiency and Conservation Authority
disseminates information on energy efficiency through seminars and publications, including a newsletter. The
Ministry of Agriculture and Forestry has provided materials (including displays, papers and videos) for teachers of
subjects associated with sustainable resource and land use. These materials are designed to advance sustainable
agriculture in educational institutions. The packaging industry has developed an education strategy. Various nongovernmental
organisations in New Zealand promote sustainable consumption and production. An example is The
Natural Step Environment Foundation Aotearoa New Zealand, a charitable trust and a subsidiary of the Natural
Step International. The Natural Step outlines four system conditions required for sustainable production and use of
resources, and recognises that sustainability must be achieved by building consensus between all sectors of the
community: government, industry, environmental organisations, the scientific community, households and
individuals. Some awareness campaigns are operating at the local government level. An example is the Wellington
Regional Council's water conservation awareness campaign.
Information: National level indicators of the state of New Zealand's environment are currently being developed
and trialed as part of the Ministry for the Environment's environmental performance indicators programme. The
current priority is to pilot and implement indicators for air, freshwater, land, ozone, and climate change. These will
be trialed over the next two years and fully implemented in 2000. At the same time, work is continuing to confirm
indicators for the marine environment, terrestrial and freshwater biodiversity, and waste, hazardous substances, and
toxic contaminants. Indicators for transport, energy, pests, weeds, and diseases are to follow. Current plans provide
for these latter sets of indicators to be implemented in the period 2000-2005. The aim is to have a set of core
environmental indicators in place by the turn of the century. Once the full suite of indicators is established,
consistent information on environmental trends will be used to review and reform policies and research initiatives
on a risk basis. The Ministry for the Environment's website allows access to environmental data as part of its
environmental performance indicators programme.
The Ministry for the Environment monitors implementation of the Resource Management Act using a variety of
methods, including case studies and an Annual Survey of Local Authorities. Information on consumption and
production patterns in New Zealand revealed in The State of New Zealand's Environment includes information on
water consumption, energy consumption and waste. Existing information to assist policy makers, industry and the
general public is available from disparate sources. .A variety of Ministry for the Environment publications are
generally available on its website. New Zealand has developed, with a local government body (the Auckland
Regional Council) a national on-line database of cleaner production case studies.
Research and Technologies: The Energy Efficiency and Conservation Author ity was established in 1992 to
encourage adoption of technologies that are energy-efficient and use renewable energy resources. The Packaging
Accord encourages the adoption of technologies that help reduce packaging waste. The Environmental Choice ecolabe
l helps consumers find products that ease the burden on the environment.
Financing: Some of these activities are financed by baseline Governmental funding to the Ministry for the
Environment and other government agencies; others are funded through fixed-duration (non-baseline) funding to
the Ministry for the Environment and other agencies. The New Zealand Government also commissions research
and activities in this area using the following special public funds: the Public Good Science Fund (PGSF) is the
New Zealand Governments major strategic research fund with NZ$290.7 million allocated in the 1998/99 financial
year. The Marsden Fund was established to support excellent research and researchers and to enhance the quality
of the research environment by creating increased opportunity to undertake research that is purely curiosity-driven.
Sustainable Management Fund: The Ministry for the Environment administers a Sustainable Management Fund
(SMF) to pay for research needs in the area of sustainable management. The SMF has an annual budget of
approximately NZ$5.0 million to support community initiatives that help achieve the Government's environmental
management priorities. Voluntary adoption of eco-efficient and cleaner production practices by industry is
generally self-funded.
Cooperation: New Zealand participates in international fora, including, CSD, OECD, APEC, UNEP, the Australia
and New Zealand Environment and Conservation Council (ANZECC), and the South Pacific Regional
Environmental Programme (SPREP), the work programmes of which (particularly CSD and OECD) often involve
sustainable consumption and production matters.

INTERNATIONAL COOPERATION TO ACCELERATE SUSTAINABLE DEVELOPMENT IN DEVELOPING COUNTRIES AND RELATED DOMESTIC POLICIES

Decision-Making: The Development Cooperation Division (DEV) of the Ministry of Foreign Affairs and Trade
(MFAT) and other New Zealand Government line agencies are involved as appropriate. New Zealand is a strong
supporter of the Barbados Programmeme of Action for Small Island Developing States. Coordination is achieved
through regular contact between ministries and relevant aid agencies. Any matters requiring ministerial attention
are drafted into widely circulated papers. The Development Cooperation Division regularly seeks input from
relevant agencies where specialist expertise is lacking in MFAT and where line agency input to policy
implementation is likely. Decision making is retained at central government level via MFAT, although the
participation of other agencies/ representatives of civil society is generally sought. Decision-making on the one
NZODA programmeme of special relevance to sustainable development (The Pacific Initiative for the
Environment) is informed by a non central Government advisory group.
There are a variety of measures to support agencies and initiatives linked to sustainable development. Examples
include: The Pacific Initiative for the Environment; the International Development Association; The Asian
Development Fund; the United Nations Development Programme; the Commonwealth Fund for Technical
Cooperation; the Global Environment Facility; the IBRD; IFC; ADB; the International Fund for Agricultural
Development; and the Commission on Sustainable Development. NZ also facilitates small island state
involvement in sustainable development activities including through specific programmes delivered to the Alliance
of Small Island States and to the South Pacific Applied Geoscience Commission. Regional integration and
cooperation in sustainable development including environmental protection: New Zealand is a founding member of
the Pacific Forum, a regional grouping of 16 member states dedicated to regional cooperation. It actively
contributes to the South Pacific Regional Environment Programme and the Round Table for Nature Conservation.
New Zealand has been at the forefront of efforts to improve the multilateral trading system including through active
participation in the WTO, the Cairns Group and through the promotion of bilateral and sub regional initiatives
involving Australia, Asian, Pacific and American trade partners. Import licensing has been removed, trade
distorting subsidies have been dismantled and tariffs lowered or eliminated on most traded goods and services. The
deregulation of domestic markets has permitted greater competition, including for foreign firms. The government
recently announced that it will grant all Least Developed Countries duty free access from 1 July 2001. In addition,
least developed and South Pacific countries already benefit from non reciprocal trade preferences. New Zealand
does not maintain any quotas. Work is ongoing on improving mutual recognition of standards and conformance.
Representatives of NGOs, civil society, Maori and women sit on an Environment Advisory Group overseeing The
Pacific Initiative for the Environment. Linkages with these and other major groups are maintained by ODA
administrators on an ongoing basis including with the scientific community and private sector. All delivery and
implementation of NZODA projects is via NGOs, multilateral and regional implementing agencies and the private
sector (which includes Crown Research Institutes and Crown Owned Enterprises). Close links are maintained with
government agencies responsible for women, indigenous people, labour, science, commerce, and farming.
NZODA seeks to foster private and public sector cooperation both generally and via specific schemes noted above
(PIIDS, ADAF, PPP). Project implementation/delivery is contracted to private sector agents in most cases.
Programmes and Projects: Two regional schemes: Asian Development Assistance Fund (ADAF) and Pacific
Island Investment Development (PIDS) scheme are designed to link the New Zealand private sector with
developing country private sector initiatives. The Pacific Island Investment Development Scheme (PIIDS)
provides an example of officia l co-funding incentives including for commercial development opportunities.
NZODA is also piloting a Public/Private Sector Partnership (PPP) scheme to assist the development of robust incountry
public and private sector joint ventures for environmentally sustainable development. NZODA is also the
principal donor assisting the development of innovative and private sector linked mechanisms for funding Pacific
Island biodiversity conservation.
Status: New Zealand Official Development Assistance has been steadily increasing in recent years. It increased
by 35% over 1995-1999, from NZ$187.6m to NZ$253.2m. Over this period bilateral ODA increased by 29%;
multilateral assistance increased by 57%, and Emergency Relief (included in the Bilateral Programme) by 78%. It
is estimated that the private flows to developing countries from New Zealand voluntary agencies (NGOs) decreased
by 11% over the 1995-99 period. It is also worth noting there are significant private remittances flowing from New
Zealand to Pacific Island states.
At the operational level, challenges are experienced in developing locally owned strategies for sustainable
development which translate through into a genuine focus for action. Donor coordination within such nationally
owned strategies, once developed, is a further challenge. Coordinating diverse interests also presents challenges,
particularly when attempting to establish an agreed framework for action upon which partnership can be based.
Institutional challenges include overcoming a lack of support among vested interest groups. Planning for structural
adjustment must be done to ensure maximum payoffs from an enhanced competitive environment.
Capacity-Building, Education, Training and Awareness-Raising: Additional funds have been allocated in
2000/01 to a programme of communications aimed to ensure improved public understanding of international
development issues including that of sustainability and the role and contribution of New Zealand’s Official
Development Assistance. Information is channeled through secondary schools curricula, NGO’s and community
groups. Media people have been targeted for familiarisation visits to Pacific aid projects and a public outreach
programme of seminars on NZODA has been introduced this year. There has been Development of Best Practice
Guidelines for international development consultants. An Education and Training Plan has been devised by the
Ministry of Foreign Affairs and Trade for staff working in its Development Cooperation Division. All categories
are targeted by the DEV Education and Training Plan. In addition, NZ has used the PIE to fund an environment
training needs assessment for the Pacific region and, as with NZODA bilateral programmes, will respond to
requests from developing partners accordingly
Information: The Ministry of Foreign Affairs and Trade publishes a wide variety of reports on international
cooperation activities, reports annually to parliament, and maintains a public access website. The Ministry
regularly contacts interest groups using telecommunications and internet facilities. Seminars and workshops
feature on the Ministry’s calendar of events. The Development Cooperation Division of the Ministry offers an
internet address of its own.
Research and Technologies: New Zealand is supportive of international initiatives to promote technology transfer
for sustainable development. It has ratified treaties which include technology transfer objectives and contributes to
multilateral funding facilities utilised for the same ends. NZ Official Development Assistance programmes include
strong know-how transfer components and educational themes. The delivery of assistance projects in developing
countries involves the tendering and award of supply contracts. Contracts can be structured to promote
environmentally sound technologies, in accordance with partner country requirements. Penalties exist for breaches
of copyright and patents to guard against the abuse of intellectual property rights. Effective synergies can be
achieved between the public and private sectors in promoting environmentally sound technologies. Commercial
imperatives are respected by the public sector, which in turn creates economic opportunities for firms and offers
cost-effective and commercial solutions to development partners.
Financing: New Zealand Official Development Assistance currently equates to 0.27% of GNP. This has increased
from 0.23% in 1995. Private financial flows and multilateral fund facilities are the other major sources for
sustainable development funding.
Cooperation: New Zealand strongly supports multilateral efforts to make trade and the environment mutually
supportive. New Zealand participates in the OECD Joint Session of Trade and Environment Experts (JEG) and the
World Trade Organisation's Committee on Trade and Environment (WTO CTE) (preceded by the GATT Group on
Environmental Measures and International Trade (EMIT). Contributions include: UNDP, UNDP Capacity 21, UN
Capital Development Fund; OCHA, WFP, UNICEF, UNHCR, UNFPA, UN Fund for Mine Clearance, UNIFEM,UNDCP, UNIDO, WHO: Tropical Diseases Research, UN Human Rights Programme, Montreal Protocol for the
Protection of the Ozone Layer, the Forum Secretariat, Pacific Community, Forum Fisheries Agency, University of
the South Pacific, South Pacific Board for Educational Assessments.
Examples of fora in which New Zealand is active include: OECD; the UN and its agencies such as the CSD,
UNEP, UNDP; the Forum Fisheries Agency; South Pacific Applied Geoscience Commission; the Pacific
Community; the Pacific Islands Forum; International Whaling Commission; South Pacific Regional Environment
Programme; the Valdivia Group. NZ is party to agreements, treaties, conventions and protocols related to
sustainable development including those with effect in the following areas: weapons and disarmament; biodiversity;
fisheries; the seabed and oceans; endangered species; conservation; Antarctica; timber; wetlands; development
cooperation; trade; environment; health; intellectual property; energy; commodities; and agriculture.
New Zealand has entered into numerous agreements with trade provisions including those which promote freer
trade, the application of sanitary and phytosanitary measures, the application of veterinary and health standards, the
control of hazardous or dangerous substances, and the control of trade in certain species.

COMMONLY USED ACRONYMS

ACS Association of Caribbean States
AMCEN Africa Ministerial Conference on the Environment
AMU Arab Maghreb Union
APEC Asia-Pacific Economic Cooperation
ASEAN Association of Southeast Asian Nations
CARICOM The Caribbean Community and Common Market
CBD Convention on Biological Diversity
CIS Commonwealth of Independent States
CGIAR Consultative Group on International Agricultural Research
CILSS Permanent Inter-State Committee for Drought Control in the Sahel
CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora
COMESA Common Market for Eastern and Southern Africa
CSD Commission on Sustainable Development of the United Nations
DESA Department for Economic and Social Affairs
ECA Economic Commission for Africa
ECCAS Economic Community for Central African States
ECE Economic Commission for Europe
ECLAC Economic Commission for Latin America and the Caribbean
ECOWAS Economic Community of West African States
EEZ Exclusive Economic Zone
EIA Environmental Impact Assessment
ESCAP Economic and Social Commission for Asia and the Pacific
ESCWA Economic and Social Commission for Western Asia
EU European Union
FAO Food and Agriculture Organization of the United Nations
FIDA Foundation for International Development Assistance
GATT General Agreement on Tariffs and Trade
GAW Global Atmosphere Watch (WMO)
GEF Global Environment Facility
GEMS Global Environmental Monitoring System (UNEP)
GESAMP Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection
GHG Greenhouse Gas
GIS Geographical Information Systems
GLOBE Global Legislators Organisation for a Balanced Environment
GOS Global Observing System (WMO/WWW)
GRID Global Resource Information Database
HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome
IAEA International Atomic Energy Agency
ICSC International Civil Service Commission
ICSU International Council of Scientific Unions
ICT Information and Communication Technology
ICTSD International Centre for Trade and Sustainable Development

IEEA Integrated Environmental and Economic Accounting
IFAD International Fund for Agricultural Development
IFCS Intergovernmental Forum on Chemical Safety
IGADD Intergovernmental Authority on Drought and Development
ILO International Labour Organisation
IMF International Monetary Fund
IMO International Maritime Organization
IOC Intergovernmental Oceanographic Commission
IPCC Intergovernmental Panel on Climate Change
IPCS International Programme on Chemical Safety
IPM Integrated Pest Management
IRPTC International Register of Potentially Toxic Chemicals
ISDR International Strategy for Disaster Reduction
ISO International Organization for Standardization
ITTO International Tropical Timber Organization
IUCN International Union for Conservation of Nature and Natural Resources
LA21 Local Agenda 21
LDCs Least Developed Countries
MARPOL International Convention for the Prevention of Pollution from Ships
MEAs Multilateral Environmental Agreements
NEAP National Environmental Action Plan
NEPAD New Partnership for Africa’s Development
NGOs Non-Governmental Organizations
NSDS National Sustainable Development Strategies
OAS Organization of American States
OAU Organization for African Unity
ODA Official Development Assistance/Overseas Development Assistance
OECD Organisation for Economic Co-operation and Development
PPP Public-Private Partnership
PRSP Poverty Reduction Strategy Papers
SACEP South Asian Cooperative Environment Programme
SADC Southern African Development Community
SARD Sustainable Agriculture and Rural Development
SIDS Small Island Developing States
SPREP South Pacific Regional Environment Programme
UN United Nations
UNAIDS United Nations Programme on HIV/AIDS
UNCED United Nations Conference on Environment and Development
UNCCD United Nations Convention to Combat Desertification
UNCHS United Nations Centre for Human Settlements (Habitat)
UNCLOS United Nations Convention on the Law of the Sea
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Programme
UNDRO Office of the United Nations Disaster Relief Coordinator
UNEP United Nations Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organization
UNFCCC United Nations Framework Convention on Climate Change
UNFF United Nations Forum on Forests
UNFPA United Nations Populatio n Fund
UNHCR United Nations High Commissioner for Refugees
UNICEF United Nations Children's Fund
UNIDO United Nations Industrial Development Organization
UNIFEM United Nations Development Fund for Women
UNU United Nations University
WFC World Food Council
WHO World Health Organization
WMO World Meteorological Organization
WSSD World Summit on Sustainable Development
WTO
WWF
World Trade Organization
World Wildlife Fund
WWW World Weather Watch (WMO)

GUIDE TO BEST’S COUNTRY RISK TIERS

GUIDE TO BEST’S COUNTRY RISK TIERS
A.M. Best defines country risk as the risk that country-specific factors could adversely affect the claims paying ability of an insurer. Country risk is
evaluated and factored into all Best’s Credit Ratings. Countries are placed into one of five tiers, ranging from “CRT-1” (Country Risk Tier 1),
denoting a stable environment with the least amount of risk, to “CRT-5” (Country Risk Tier 5) for countries that pose the most risk and, therefore,
the greatest challenge to an insurer’s financial stability, strength and performance.
A.M. Best’s Country Risk Tiers are not credit ratings and are not directly comparable to a sovereign debt rating, which evaluates the ability and
willingness of a government to service its debt obligations.
Country Risk Tiers
Country Risk Tier Definition
CRT-1 Predictable and transparent legal environment, legal system and business infrastructure; sophisticated financial
system regulation with deep capital markets; mature insurance industry framework.
CRT-2 Predictable and transparent legal environment, legal system and business infrastructure; sufficient financial system
regulation; mature insurance industry framework.
CRT-3
Developing legal environment, legal system and business environment with developing capital markets; developing
insurance regulatory structure.
CRT-4 Relatively unpredictable and nontransparent political, legal and business environment with underdeveloped capital
markets; partially to fully inadequate regulatory structure.
CRT-5 Unpredictable and opaque political, legal and business environment with limited or nonexistent capital markets; low
human development and social instability; nascent insurance industry.
Country Risk Reports
A.M. Best Country Risk Reports are designed to provide a brief, high level, explanation of some of the key factors that determine a country’s
Country Risk Tier assignment. It is not intended to summarize A.M. Best’s opinion on any particular insurance market, or the prospects for that
market.
Categories of Risk
Country Risk Reports provide “scores” for three categories of risk for each country. These “scores” are: (1) Very Low; (2) Low; (3) Moderate; (4)
High and (5) Very High.
Category of Risk Definition
Economic Risk
The likelihood that fundamental weaknesses in a country’s economy will cause adverse developments for an
insurer. A.M. Best’s assessment of economic risk evaluates the state of the domestic economy, government
finances and international transactions, as well as prospects for growth and stability.
Political Risk
The likelihood that government or bureaucratic inefficiencies, societal tensions, inadequate legal system or
international tensions will cause adverse developments for an insurer. Political risk comprises the stability of the
government and society, the effectiveness of international diplomatic relationships, the reliability and integrity of
the legal system and of the business infrastructure, the efficiency of the government bureaucracy and the
appropriateness and effectiveness of the government’s economic policies.
Financial System Risk
Financial system risk (which includes both insurance and non-insurance financial system risk) is the risk that
financial volatility may erupt due to inadequate reporting standards, weak banking system or asset markets
and/or poor regulatory structure. Along with the risk that the insurance industry’s level of development and
public awareness, transparent and effective regulation and reporting standards and sophisticated regulatory
body will contribute to a volatile financial system and compromise the ability of an insurer to pay claims.
Political Risk Summary
To provide additional detail on the political risk in a given domicile the Country Risk Reports include the Political Risk Summary. The Political Risk
Summary is a radar chart that displays scores for nine different aspects of political risk scored on a scale of 1-5 with 1 being the least amount of
risk and 5 being the highest amount of risk.
Category Definition
International Transactions
Policy
Measures the effectiveness of the exchange rate regime and currency management.
Monetary Policy Measures the ability of a country to effectively implement monetary policy.
Fiscal Policy Measures the ability of a country to effectively implement fiscal policy.
Business Environment Measures the overall quality of the business environment, and ease of doing business.
Labor Flexibility Measures the flexibility of the labor market, including the company’s ability to hire and fire employees.
Government Stability Measures the degree of stability in a government.
Social Stability Measures the degree of social stability including human development and political rights.
Regional Stability Measures the degree of stability in the region
Legal System Measures the transparency and level of corruption in the legal system.
Country Risk Tier Disclosure
A Country Risk Tier (CRT) is not a credit rating, rather it represents a component of A.M. Best’s credit rating methodology that is applied to all
insurers. A CRT is not a recommendation to purchase, hold or terminate any security, insurance policy, contract or any other financial obligation
issued by a government, an insurer or other rated issuer, nor do they address the suitability of any particular policy, contract or other financial
obligation for a specific purpose or purchaser.
Financial Strength Ratings are distributed via press release and/or the A.M. Best Web site at www.ambest.com and are published in the Rating
Actions section of BestWeek®. Financial Strength Ratings are proprietary and may not be reproduced without permission.

AMB Country Risk Report

New Zealand
• The Country Risk Tier (CRT) reflects A.M. Best’s assessment
of three categories of risk: Economic, Political and
Financial System Risk.
• New Zealand is a CRT-2 country with moderate levels of
economic risk and low levels of political and financial system
risk.
• New Zealand’s economy entered into a recession in 2008.
A large decline in the housing market, coupled with the
global financial turmoil led to an economic contraction in
both 2008 and 2009. A mild and uneven economic recovery
has been underway in 2010 and 2011, which is expected to
continue moving forward.
• The map below depicts Oceania and Indonesia. A.M. Best
considers Indonesia to be CRT-4, while the two countries
evaluated in Oceania, Australia and New Zealand, are CRT-1
and CRT-2, respectively.




 
Regional Summary: Oceania
• Oceania, whose largest two nations,
Australia and New Zealand, make up
the vast majority of economic activity,
is located in the South Pacific Ocean.
Australia and New Zealand have
strong political and cultural ties with
the United Kingdom.
• Australia and New Zealand have
close economic ties with Southeast
Asia. The entire region was established
as a Free Trade Area in 2009.
• The global economic slowdown
has impacted the region; however,
the impact has been much less severe
than that felt in Europe and North
America and a recovery is underway.
Economic Risk: Moderate
• The New Zealand economy was
traditionally based on the production
and export of agricultural products.
Growth in several industries including
food processing, tourism, filmmaking
and wine has helped to diversify the
economy. New Zealand has also come
to specialize in a number of niche
industries like boat building, food
processing technology, outdoor equipment,
and mountain bikes.
• In 2008 and 2009, as export demand
and tourism revenues declined, the
New Zealand economy fell into recession.
It rebounded in 2010, with GDP
growth of 1.5%. Growth has been
uneven and modest in 2011, at about
0.9%. The earthquake in February
2011 caused serious damage and
slowed economic activity.

Political Risk: Very Low
• Corruption is perceived as almost
nonexistent as New Zealand ranked
first out of 179 countries in Transparency
International’s Corruption Perceptions
Index in 2010.
• According to the World Bank, New
Zealand’s business environment is
ranked third in the world (behind Singapore
and Hong Kong) in terms of
ease of doing business.
• Amid concerns regarding weak tax
revenues and reconstruction costs, the
government aims to regain a fiscal surplus
by 2015.
Financial System Risk: Low
• The New Zealand insurance industry
is overseen by the Financial Markets
Authority (FMA), which commenced
operations in May 2011. The FMA is a
super-regulator and works in conjunction
with the Reserve Bank.
• New Zealand has undergone massive
reforms over the past 2 decades
transforming the economy to one that
is open and globally competitive.
• The banking sector weathered the
global financial crisis relatively well, but
risks remain due to banks’ exposure to
highly indebted households and housing
prices that are likely overvalued.

Intoduction New Zealand

Background:

The Polynesian Maori reached New Zealand in about A.D. 800. In 1840, their chieftains entered into a compact with Britain, the Treaty of Waitangi, in which they ceded sovereignty to Queen Victoria while retaining territorial rights. In that same year, the British began the first organized colonial settlement. A series of land wars between 1843 and 1872 ended with the defeat of the native peoples. The British colony of New Zealand became an independent dominion in 1907 and supported the UK militarily in both world wars. New Zealand's full participation in a number of defense alliances lapsed by the 1980s. In recent years, the government has sought to address longstanding Maori grievances.

New Zealand weather

New Zealand has a mild, oceanic climate. Daytime temperatures in spring and autumn range from approximately 55-70 degrees Fahrenheit (13-21 degrees Celcius), with cool temperatures in the mountains and warm weather on the coasts. In spring and autumn, it rains approximately 10 days out of the month, covering New Zealand in lush green countryside and wildflowers. Temperatures in summer range from approximately 70-85 degrees F (21-29 degrees C) in both the north and the south with rain averaging 7 days per month. Year-round, the weather has a prevailing westerly pattern, creating good surf beaches, rainforests, and wetlands on the west coast and leaving the more protected and arid east coast ideal for swimming, boating, and sea fishing. New Zealand is a land of microclimates. Lush rainforests reside remarkably near the arid terrain of high country sheep stations. Our escorted tours cover a broad range of regions and microclimates, and have been designed to take advantage of these climatic differences as much as possible. Regardless of the season, however, weather is often unpredictable and visitors should come prepared for periods of both hot sun and cool rain. A recommended operator packing list is provided as part of your confirmation package.

New Zealand culture

New Zealand is a rich blend of cultures. Once a British colony, Great Britain still has a strong influence on New Zealand lifestyle, from sinfully delicious Devonshire Teas to New Zealand's national pastime, rugby. Another fascinating thread in the fabric of New Zealand culture is that of the Maori, the pre-European settlers. While they have largely adopted a Western lifestyle, the Maori people still hold proudly to their native traditions. Their Polynesian-influenced language, customs, and art are a fixture in everyday New Zealand life. On your trip, you will learn about Maori history and folklore and will have the opportunity to participate in their customs in a genuine and meaningful way.

New Zealand flora & fauna

Because of its isolation, New Zealand has developed a unique eco-system, maintaining plants and wildlife found nowhere else in the world that have changed little from their ancient origins. Upon first glance, trees appear to have feathers and birds fur, leading your imagination back to prehistoric times. With no animals predacious to humans here, you can wrap yourself in the peaceful solitude of the lush New Zealand bush, the silence only broken by the lilting song of the tui, the babble of a forest stream, or the curiosity of a flitting fantail. Wherever possible, we give you the opportunity to learn about New Zealand's environment and to feel the exhilaration of interacting with its wildlife one-on-one in their natural habitat. All planned encounters are done with the utmost care given to both you and the wildlife. Check our itineraries for the regions that feature these activities.