Monday, November 28, 2011

New Zealand’s John Key’s Victory, A Win for Free Markets

Despite all the troubles confronting the world today, forces of globalization and economic freedom appear to be getting some headway in the realm of politics.

From Bloomberg,

New Zealand Prime Minister John Key’s re-election with his party’s biggest mandate in 60 years will strengthen a government push for free-market policies as he pursues welfare cuts and asset sales to balance the budget.

Key’s National Party won 48 percent of the vote on Nov. 26, up from 45 percent three years ago, allowing him to form the next government with support from political allies in parliament. Electricity companies Mighty River Power Ltd. and Genesis Power Ltd. may be among the first considered for share sales, the prime minister signaled today, as his administration focuses on divesting some state assets.

A second term allows Key to expand policies aimed at reducing the economy’s reliance on government spending, an effort that was slowed in the past three years by the need to help the country recover from the global financial crisis and New Zealand’s deadliest earthquake in 80 years. The leader, whose popularity survived a credit-rating downgrade, has pledged to return the budget to surplus by 2014-15 or sooner as soaring borrowing costs imperil indebted European nations.

Information and education are the only means where free market/classical liberalism forces can generate political following. Nevertheless today’s technology enabled connectivity platforms (social media) should help facilitate the campaign for liberty.

John Key’s win plus the recent defeat of the Socialist government or a victory by Conservatives in Spain are refreshing examples of marginal changes in the political sphere that has been happening across the world.

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