Mobile Communications Will Drive Economic Growth

At the GSMA's Leadership Summit, bringing together 400 CEOs, government ministers and officials, industry leaders today stressed the unique role that broadband, specifically mobile broadband, can play as an economic stimulus. Those leaders called for governments to support the rollout of mobile broadband services to drive economic growth.
The release of new spectrum for mobile broadband services in 2009 will ultimately add the equivalent of $211 billion to China's GDP, and could add the equivalent of $95 billion to India's GDP1, according to a new report by Professor Leonard Waverman and consultancy LECG for the GSMA, which represents the global mobile industry. The rollout of mobile broadband networks will create hundreds of thousands of jobs, encourage new businesses across the value chain, improve productivity and boost consumer spending.

As the mobile industry is one of the few parts of the private sector currently capable of providing an economic stimulus, governments need to ensure they adopt policies that encourage more investment in mobile services and networks. Wherever possible, governments should seek to create a stable regulatory environment, while licensing spectrum on the right terms to encourage spending on network infrastructure and services, stimulating economic growth.

Time for Wellington To Grow

Recent statistics on staff numbers show that there has been significant growth in public service jobs. This makes Wellington vulnerable to any major staff reductions in the public sector should there be any significant change to government spending in the near term. Wellington needs to develop additonal sources of growth and employment in the private sector. As many investors are finding at to their cost - it pays to diversify.

Economies of scale are well and good but we need to balance the idea of concentrating development in the CBD. From a strategic perspective having all our facilities concentrated around the CBD leaves us vulnerable in the event of an earthquake.

In an age when carbon-based transport is likely to become more expensive we need to consider alternatives. Light rail, broadband, teleworking are all concepts worth exploring. If the city is going to prosper and grow then we need to be open to the outside world and market ourselves globally. We need to attract the people and the capital to invest in modern infrastructure and we need to sell high value products and services in the global marketplace. Perhaps its time to dust off the proposal for a hi-tech business park in the northern suburbs?

Step Change Needed in Economic Performance

New Zealand needs a step change in economic performance if it is to raise the living standards of all its people and to afford the increasingly expensive healthcare treatments now available. In addition we also have a large number of baby-boomers coming through the system to retirement during the next two decades.

Productivity growth, adoption of hi-tech production methods and lower income tax rates are all part of the policy mix required. We also need to agree and implement a NZ Broadband Strategy and build links between our education system, job training and the global marketplace in a way that encourages kiwi companies to remain headquartered here and to be smart about retention of Intellectual Property rights here in New Zealand.

Whichever parties are involved in forming the next government should probably consider convening a NZ Summit of the type David Lange convened after the 1984 election. We need to debate and agree some key national goals and then set about achieving them.