Smith Co-Lead Speaker At OECD Meeting In Paris

International Trade Minister Lockwood Smith has been one of the co-lead speakers at the OECD's Ministerial Council meeting in Paris.

Speaking on the theme of "Sustainable Growth and Social Cohesion in a Globalising World", Dr Smith noted that the OECD had long advocated structural adjustment policies as the best strategy for growth in a globalising world.

But many countries had proceeded cautiously, fearing such policies would impose high social costs.

"New Zealand's experience suggests this fear is misplaced provided comprehensive structural adjustment policies are adopted. Half measures don't work," the minister said.

The economic environment was now deregulated and stable, with low inflation, fiscal surpluses and declining debt-to-GDP ratios.

"The key is to implement comprehensive reforms consistently over time and to present them coherently to the public," Dr Smith said.

New Zealand had had to comprehensively redefine the role of government by redesigning the delivery of social policy and eliminating functions not core to its role.

"Our conclusion is that in a rapidly globalising world our comparative advantage depends on better government. So, too, does our economic and social progress."