HOT TOPICS:   Migration  |  NZ$   | Inflation                                                  RESOURCES:    Economic calendar   |   Understanding China

The comment stream

Recent comments

Reader poll

In your opinion, what's the last thing someone should borrow money to pay for?

Choices

NZ best place in world to do business, Forbes says; Cites transparency and stability, lack of red tape; But notes high NZ$ downside

Posted in Business

New Zealand has ranked number one on Forbes' latest list of Best Countries for Business, up one place from last year.

Forbes cited a transparent and stable business climate, lack of red tape and corruption, personal freedom and investor protection as boosting New Zealand's business image.

However, it noted a downside was the New Zealand dollar had appreciated, making exports more expensive.

Forbes writes:

New Zealand ranks first on our list of the Best Countries for Business, up from No. 2 last year, thanks to a transparent and stable business climate that encourages entrepreneurship. New Zealand is the smallest economy in our top 10 at $162 billion, but it ranks first in four of the 11 metrics we examined, including personal freedom and investor protection, as well as a lack of red tape and corruption.

New Zealand’s economy is closely tied to Australia’s, and both held up better than most during the global financial crisis. The downside to the resilience of its economy is that the New Zealand dollar has appreciated, making the country’s agricultural exports more expensive. The higher prices have helped to push up unemployment to 7.3%—the highest level since 1999.

New Zealand cut its corporate tax rate from 30% to 28% last year and eliminated certain deductions, making the cut fiscally neutral. Investors have prospered, with the country’s benchmark stock index, the NZX 50, up 24% over the past 12 months.

We determined the Best Countries for Business by grading 141 nations on 11 different factors: property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.

Forbes leaned on research and published reports from the following organizations: the Central Intelligence Agency, Freedom House, Heritage Foundation, Property Rights Alliance, Transparency International, World Bank and World Economic Forum.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment in the box on the right or click on the "'Register" link at the bottom of the comments.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.

16 Comments

Geez talk about

Geez talk about misinformation...................'Investors have prospered, with the country’s benchmark stock index, the NZX 50, up 24% over the past 12 months.'
What was the NZX 50 gains EXCLUDING dividends? Remeber the NZX40? It was ex Dividends, but 'the powers that be' didn't like that one as we looked all too normal.
Almost EVERY index in the world, excludes dividends. So if someone is being disengenuous, they'll compare the NZ50 (as it's a gross index) to others. So NOT SURPRISINGLY we look to have done well !!!!!!!!
I know the arguement about we give great dividends and so the NZ40 index wasn't as reflective, but be HONEST when reporting the index and quote a world equivalent (say in brackets) so we can compare apples with 'nearer' apples.
SPIN SPIN spin, that's what this report is.

I think it was the NZSE40

I think it was the NZSE40 back in those days!!
 
And of course there were both Captial and Gross Indices.
 
In most countries it's the Gross indices that are quoted for returns and in reference to benchmarks.
 
I hadn't actually realised the gain was so high over the past 12 months, but it's all relative, +24%PA over the past 12 months, but +8%PA over the past 18 months!   Timing is everything when quoting returns over short timeframes.

They are right.  NZ is a

They are right.  NZ is a great place to do business.

Pity some of the business

Pity some of the business smells nasty.
Possibly one of the best to rip off the investor.

I would never suggest we are

I would never suggest we are snow white.  But try doing business in China or even Australia.
 
Some years agao I was doing business with Hong Kong based company owned by two chinese brothers who had wider family in mainland China.  Out of the blue one of them informed us they were closing down.  The reason being his brother had been kidnapped while doing business in mainland China and the ransom cost was so high he had to liquidate his business to pay it.
 
While in Australia I did business with a company who turned around after the job was done and stated he had decided not to pay.  When I got to the lawyers office he laughed and said he had been in court against this particular man and it was more or less accepted policy going into deals that he would not pay.  The practice was he would make an offer outside the court for 50c on the dollar on the basis it was cheaper than the on going barristers fees.
 
There are many examples and if you have done business in other countries you begin to understand what we take for granted.  In this respect the grass is decidely pale and yellowed on the other side of the fence.

ha ha ha .. 50c in the dollar

ha ha ha .. 50c in the dollar .. yes .. that's exactly how they do business
 
I had that experience some time ago .. there are two mediteranean nationalities in australia that use that tactic as standard operating procedure .. all the time .. I woke up to it after the third one .. took them to court each time and won .. but now, regardless of their bona fides, if they are mediteranean .. it's cash up front .. the whole lot .. otherwise they can take a hike .. I dont want their business unless it's paid for in advance ..
 

Unfortunetaly Ive met enough

Unfortunetaly Ive met enough ppl like your OZ guy in NZ operating in the same fashion to make me not bother with private work.  Usually I find ppl ring me up because they want the job done cheaply and think Im the stooge for that (funnily enough had one this week.looked like 2 to 3 days work for less than the min wage....la la land that one). Then I find that If Im lucky they pay and then its free support for ever and if it fails they expect me to fix for free.  .and the same sorts of ppl who want cheap work will sue at the drop of the hat.  If I dont have PI of course IM liable for business losses I have to pay...re-mortgage maybe ouch (happened to a friend of mine). Then there is the IRD to pay off....just pointless.
The chinese guy could easily be genuine....no pay and they would slit the brother's throat without a second thought....ppl will even slice you open for your wallet let alone a decent ransome.
regards
 

Lack of red tape?  Haven't

Lack of red tape?  Haven't the visited the local councils or Big Gerry's cupboard...
 
Lack of Government corruption ... maybe,
 
Lack of Government stupidity ... definitely not!
 

Know how long it took my

Know how long it took my friend to get his building permit through the local council in Sydney (renovation)?
 
 
14 months.

"Lack of red tape? Haven't

"Lack of red tape? Haven't they visited the local councils..."
Then just  try to get something done within all the European Union regulations! Nightmare!

Much of it isnt a problem as

Much of it isnt a problem as long as you have deep pockets....so pay the fees and they are happy.
Which of course added to overly expensive materials just makes DIY improvements economically pointless, so now I dont bother. Of course I notice the comments that if you substantially repair something it looks like you need a consent....where do you go for such an explanation? well certianly not the council....they are a vested interest.
regards

Stupidity, it does seem to

Stupidity, it does seem to waft around our so-called 'smart' ones... But seriously though, "NZ the best place in the world to do business..." SERIOUSLY?

 

Yes in a relative sense...of

Yes in a relative sense...of course if you are a libertarian then no, but fringe isnt exactly important.
regards

I think instead of trying to

I think instead of trying to make excuses for it not being true you should all send it to all your overseas friends and tell them to come here and start a business.  Forbes is a top publication. We should not be so negative,  NZ is the best place on earth to live.
Steven  as for doing DIY,  I have part time over the last 2 years spent less than $20K on improvements to our property and I have been told it has added $200K to its value,  so it can be done if you have the skill and time to make extra special changes.

another meaningless report

another meaningless report that does nothing to make housing more affordable or create jobs for the unemployed