NZ 'best place in world to do business'

Business

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

15th Nov 12, 5:18pm by Alex Tarrant

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.

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14 Comments

by Chris_J | 15th Nov 12, 9:35pm 1352968520

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.

by Ralph | 15th Nov 12, 7:21pm 1352960510

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

by Basel Brush III | 15th Nov 12, 8:39pm 1352965197

Pity some of the business smells nasty.

Possibly one of the best to rip off the investor.

by Ralph | 15th Nov 12, 9:37pm 1352968637

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.

by iconoclast | 15th Nov 12, 10:27pm 1352971649

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 ..

by steven | 16th Nov 12, 7:27am 1353004074

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

by Chris_J | 15th Nov 12, 9:37pm 1352968673

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!

by Ralph | 15th Nov 12, 9:56pm 1352969816

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

14 months.

by Gertraud T. | 15th Nov 12, 10:12pm 1352970748

"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!

by steven | 15th Nov 12, 10:29pm 1352971760

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

by General HubHub | 15th Nov 12, 9:48pm 1352969319

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?

by steven | 15th Nov 12, 10:31pm 1352971918

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

regards

by keriwin | 16th Nov 12, 8:38am 1353008306

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.

by ngakonui gold | 16th Nov 12, 11:02am 1353016968

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