Sir Roger Owen Douglas (born 5 December 1937), a
New ZealandNew Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses , and numerous smaller islands, most notably Stewart Island/Rakiura and the Chatham Islands. The indigenous Māori named New Zealand Aotearoa, commonly translated as The Land of the Long White Cloud...
politician, formerly served as a senior
New Zealand Labour PartyThe New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
CabinetThe New Zealand Cabinet functions as the policy and decision-making body of the executive branch within the New Zealand government system. The Prime Minister and many Ministers of the Crown serve as members of the Cabinet....
minister. He became arguably best-known for his prominent role in the radical economic restructuring undertaken by the
Fourth Labour GovernmentThe Fourth Labour Government of New Zealand was the government of New Zealand from 26 July 1984 to 2 November 1990. It enacted major social and economic reforms, including reformation of the tax system. The economic reforms were known as Rogernomics after Finance Minister Roger Douglas...
during the 1980s ("
RogernomicsThe term Rogernomics, a portmanteau of "Roger" and "economics", was created by analogy with Reaganomics to describe the economic policies followed by New Zealand Finance Minister Roger Douglas from his appointment in 1984...
"). In 1993 he founded the Association of Consumers and Taxpayers (the forerunner of the
ACT New ZealandACT New Zealand is a political party in New Zealand that espouses free market classical liberalism in the New Zealand Parliament. According to party leader Rodney Hide, the party stands for 'individual freedom, personal responsibility, doing the best for our natural environment and for smaller,...
Party) with
Derek QuigleyDerek Francis Quigley, QSO is a former New Zealand politician. He was a prominent member of the National Party during the late 1970s and early 1980s, and was known for his support of free market economics and trade liberalization...
. In 2008 he returned to Parliament as an ACT Party
backbencherIn Westminster parliamentary systems, a backbencher is a Member of Parliament or a legislator who does not hold governmental office and is not a Front Bench spokesperson in the Opposition...
.
Early life
Douglas was born on 5 December 1937. His family had strong ties with the
trade-unionA trade union is an organization of workers who have banded together to achieve common goals in key areas, such as working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labor contracts with employers...
movement, and actively engaged in politics. His father
Norman DouglasNorman Vazey Douglas, QSO was a New Zealand trade unionist and left-wing politician. He joined the New Zealand Labour Party in 1932, but when John A. Lee was expelled from the party in 1940, Douglas followed to join the new Democratic Labour Party...
and a brother
Malcolm DouglasMalcolm Douglas was a New Zealand politician of the Labour Party.He represented the Hunua electorate from 25 November 1978 after the 1978 general election, until 24 May 1979, when he was unseated by a decision of the Electoral Court in favour of Winston Peters...
both became
LabourThe New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
politicians.
Douglas received his secondary education at
Auckland Grammar SchoolAuckland Grammar School is a state secondary school for years 9 to 13 boys in Auckland, New Zealand. It had a roll of 2,483 in 2008, including a number of boarders who live in nearby Tibbs' House, making it one of the largest schools in New Zealand.-History:...
, and gained a degree in
accountancyAccountancy or accounting is the art of communicating financial information about a business entity to users such as shareholders and managers...
from the
University of AucklandThe University of Auckland is New Zealand's largest university and the top-ranked New Zealand university in the THES - QS World University Rankings. Established in 1883 as a constituent college of the University of New Zealand, the university is now made up of eight faculties over six campuses,...
.
Labour Party
After some experience in local-body politics as a member of the Manukau City Council, Douglas began his career in national politics in 1969 when he won election to parliament as the
LabourThe New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
Member of Parliament for Manukau. He became involved in the party's policies on industry and
economicsEconomics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
. He served as the MP for Manukau from 1969 to 1978, and then for Manurewa from 1978 to 1990.
Labour under
Norman KirkNorman Eric Kirk was Prime Minister of New Zealand from 1972 until his sudden death in 1974. He led the Parliamentary wing of the New Zealand Labour Party from 1965 to 1974. He was the fourth Labour Prime Minister of New Zealand, but the first to be born in New Zealand...
won the 1972 election, and the Labour parliamentary caucus elevated Douglas to
CabinetThe New Zealand Cabinet functions as the policy and decision-making body of the executive branch within the New Zealand government system. The Prime Minister and many Ministers of the Crown serve as members of the Cabinet....
rank. During the
Third Labour GovernmentThe Third Labour Government of New Zealand was the government of New Zealand from 1972 to 1975. Its most significant policies encouraged biculturalism and a sense of New Zealand identity, but it lacked the economic skills necessary to lead the country through a difficult economic period...
, he served as Postmaster-General, Minister of Broadcasting, Minister of Housing, and Minister of Customs. However, Kirk's unexpected death in 1974 (and his replacement by Bill Rowling) became factors in Labour's defeat by the
National PartyThe New Zealand National Party is the largest party in the New Zealand House of Representatives and in November 2008 formed a minority government with support from three minor parties...
under
Robert MuldoonSir Robert David "Rob" Muldoon, GCMG, CH served as Prime Minister of New Zealand from 1975 to 1984, as leader of the governing National party.-Youth:...
in the 1975. Douglas became Labour's spokesperson on housing until 1980, when he acquired responsibility for the trade and industry portfolio. In informal Labour caucus politics, Douglas became a member of the "
Fish and Chip Brigade", which grouped him with
David LangeDavid Russell Lange, ONZ, CH , served as Prime Minister of New Zealand from 1984 to 1989. He headed New Zealand's fourth Labour Government, one of the most reforming administrations in his country's history, but one which did not always conform to traditional expectations of a social-democrat party...
,
Mike MooreMichael Kenneth Moore ONZ is a politician from New Zealand who has served both as Prime Minister of New Zealand and Director-General of the World Trade Organization.-Early life:...
, and
Michael BassettMichael Edward Rainton Bassett, QSO is a former Labour Party member of the New Zealand House of Representatives and cabinet minister in the reformist fourth Labour government...
. In 1983, when David Lange became leader of the Labour Party, he made Douglas the Labour spokesperson for
financeFinance is the science of funds management. The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated...
.
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Labour The New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
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Labour The New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
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Labour The New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
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Minister of Finance
LabourThe New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
returned to power in the election of 1984, forming the
Fourth Labour GovernmentThe Fourth Labour Government of New Zealand was the government of New Zealand from 26 July 1984 to 2 November 1990. It enacted major social and economic reforms, including reformation of the tax system. The economic reforms were known as Rogernomics after Finance Minister Roger Douglas...
. Lange became
Prime MinisterA prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. The position is usually held by, but need not always be held by, a politician. In many systems, the prime minister selects and can dismiss other members of the cabinet, and...
and gave the
Minister of FinanceThe Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....
role to Douglas. Douglas began to implement revolutionary policies. Known as "
RogernomicsThe term Rogernomics, a portmanteau of "Roger" and "economics", was created by analogy with Reaganomics to describe the economic policies followed by New Zealand Finance Minister Roger Douglas from his appointment in 1984...
" (a coinage based on the term "
ReaganomicsReaganomics refers to the economic policies promoted by United States President Ronald Reagan during the 1980s...
", used to describe the economic policies of
USThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
President
Ronald ReaganRonald Wilson Reagan was the 40th President of the United States and the 33rd Governor of California .Born in Tampico, Illinois, Reagan moved to Los Angeles, California in the 1930s...
), the measures involved
monetaristMonetarism is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over longer periods and that objectives of monetary policy are best met by targeting the growth rate of the money supply.Monetarism today...
measures to control
inflationIn economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation is also an erosion in the purchasing power of money – a loss of real...
, the slashing of
subsidiesA subsidy is a form of financial assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more...
and
trade tariffsA tariff is a duty imposed on goods when they are moved across a political boundary.-History:...
, and the privatisation of public assets. Traditionalists regarded all of these policies as a betrayal of Labour's left-wing stance, and Rogernomics became deeply unpopular with those who supported the political left in
New ZealandNew Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses , and numerous smaller islands, most notably Stewart Island/Rakiura and the Chatham Islands. The indigenous Māori named New Zealand Aotearoa, commonly translated as The Land of the Long White Cloud...
. Douglas's supporters defended the reforms as necessary to revive the economy, which
NationalThe New Zealand National Party is the largest party in the New Zealand House of Representatives and in November 2008 formed a minority government with support from three minor parties...
's
MuldoonSir Robert David "Rob" Muldoon, GCMG, CH served as Prime Minister of New Zealand from 1975 to 1984, as leader of the governing National party.-Youth:...
had kept under tight regulation.
Euromoney magazine chose Douglas as its "Finance Minister of the year" for 1985.
Federated FarmersFederated Farmers of New Zealand Incorporated is an organisation in New Zealand which lobbies on behalf of its member farmers.It has a network of 24 provinces and seven industry groups. Federated Farmers provides a locally based, democratic organisation that lobbies on farming issues both...
had proposed most of these reforms. For example, they supported the removal of farm subsidies as well as all the other
trade barrierA trade barrier is a general term that describes any government policy or regulation that restricts international trade. The barriers can take many forms, including the following terms that include many restrictions in international trade within multiple countries that import and export any items...
s. However, because farmers traditionally supported the National Party, the Labour Government applied the reforms to farmers first, in such a manner that the subsidies disappeared while farmers still had to pay for the protected machinery they needed, so many farmers felt hit hard.
Despite implementing substantial reforms — particularly economic reforms — which made it unpopular amongst some New Zealanders, the Labour government won re-election in 1987, with a substantial majority in the legislature (58.8% of the seats). Some argue that Labour's re-election stemmed primarily from the weakness of the opposition National Party and from public support for Labour's other policies (such as its stand against nuclear weapons). Douglas, along with his supporters
Richard PrebbleRichard William Prebble CBE, born 7 February 1948, was for many years a member of the New Zealand Parliament. Initially a member of the Labour Party, he joined the newly formed ACT New Zealand party under Roger Douglas in 1996.-Early life:...
and
David CaygillDavid Caygill, CBE is a former New Zealand politician. After being New Zealand's youngest city councillor at 22 , he was an MP from 1978 to 1996, representing the Labour Party...
, maintained majority backing from the Cabinet to continue with their reforms, up until the conflict between Lange and Douglas. Shortly after the election and the "
Black MondayIn finance, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong, spread west through international time zones to Europe, hitting the United States after other markets had already...
"
stock-market crashA stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market. Crashes are driven by panic as much as by underlying economic factors...
, Prime Minister
LangeDavid Russell Lange, ONZ, CH , served as Prime Minister of New Zealand from 1984 to 1989. He headed New Zealand's fourth Labour Government, one of the most reforming administrations in his country's history, but one which did not always conform to traditional expectations of a social-democrat party...
moved to stop the changes. A protracted conflict between Lange and Douglas broke out in
CabinetThe New Zealand Cabinet functions as the policy and decision-making body of the executive branch within the New Zealand government system. The Prime Minister and many Ministers of the Crown serve as members of the Cabinet....
. Eventually Lange dismissed Richard Prebble in November 1988 and, following Douglas' announcement of a new
flat-taxA flat tax is a tax system with a constant tax rate. Usually the term flat tax would refer to household income being taxed at one marginal rate, in contrast with progressive taxes that may vary according to such parameters as income or usage levels...
system and a
Guaranteed Minimum IncomeGuaranteed Minimum Income is a proposed system of social welfare provision that guarantees that all citizens or families have an income sufficient to live on, provided they meet certain conditions. Eligibility is typically determined by citizenship, a means test and either availability for the...
scheme, forced Douglas to resign his ministerial positions at the end of 1988.
The Labour Party
caucusA caucus is a meeting of supporters or members of a political party or movement, especially in the United States. The exact definition varies among political cultures.-Origin of the term:...
, however, voted to return Douglas to Cabinet in July the following year. While Lange had perforce to accept the decision of caucus, he did not have to reappoint Douglas to his old post. Douglas became Minister of Police and Minister of Immigration, much more junior positions than his old role of
Minister of FinanceThe Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....
. The rejection by caucus of Douglas's original dismissal, however, had weakened Lange's position, and the Prime Minister himself resigned the month after Douglas returned. Lange's successors (Geoffrey Palmer and
Mike MooreMichael Kenneth Moore ONZ is a politician from New Zealand who has served both as Prime Minister of New Zealand and Director-General of the World Trade Organization.-Early life:...
) did not, however, restore Douglas to his former position, and Douglas proved unable to pursue his economic programme. Douglas did not stand for Parliament at the 1990 election, which
LabourThe New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
lost. His policies, however, continued under the aegis of
Ruth RichardsonRuth Richardson served as New Zealand's Minister of Finance from 1990 to 1993, and is known for her strong pursuit of free-market economic reforms .-Early life:...
, the
Minister of FinanceThe Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....
in the new
Fourth National Government of New ZealandThe Fourth National Government of New Zealand was the government of New Zealand from 2 November 1990 to 27 November 1999. Following in the footsteps of the previous Labour government, the fourth National government embarked on an extensive programme of spending cuts...
(see
RuthanasiaRuthanasia, a portmanteau of "Ruth" and "euthanasia", is the pejorative name given to the period of free-market economic reform conducted during the first term of the fourth National government in New Zealand, from 1990 to 1993...
).
Douglas became a
Knight BachelorThe rank of Knight Bachelor is a part of the British honours system. It is the rank of a man who has been knighted by the monarch but not as a member of one of the organised Orders of Chivalry...
as The Honorable Sir Roger Douglas in 1990.
By and large, subsequent governments have retained or re-inforced the policies promoted by Douglas in the years 1984 to 1987 — including low levels of import-protection, "credible" monetary and fiscal policies, deregulated financial markets and limited subsidies and other interventions in the economy. The
Heritage FoundationThe Heritage Foundation is an American think tank based in Washington, D.C.The foundation took a leading role in the conservative movement during the presidency of Ronald Reagan, whose policies drew significantly from Heritage's policy study Mandate for Leadership. Heritage has since continued to...
/ Wall Street Journal 2006
Index of Economic FreedomThe Index of Economic Freedom is a series of 10 economic measurements created by the Heritage Foundation and Wall Street Journal. Its stated objective is to measure the degree of economic freedom in the world's nations.- History :...
ranks New Zealand 9th-highest in the world, (equal with the United States and Australia).
ACT New Zealand
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In 1993 Douglas co-founded the Association of Consumers and Taxpayers with
Derek QuigleyDerek Francis Quigley, QSO is a former New Zealand politician. He was a prominent member of the National Party during the late 1970s and early 1980s, and was known for his support of free market economics and trade liberalization...
. Douglas and Quigley intended the Association to serve as a pressure-group promoting the Douglas economic policies. Shortly afterwards, in 1996, the country switched to using the MMP electoral system. MMP gave smaller groups a much better chance of entering Parliament, and encouraged the Association to establish the
ACT New ZealandACT New Zealand is a political party in New Zealand that espouses free market classical liberalism in the New Zealand Parliament. According to party leader Rodney Hide, the party stands for 'individual freedom, personal responsibility, doing the best for our natural environment and for smaller,...
Party. Douglas served as the party's first leader, but soon stood aside for
Richard PrebbleRichard William Prebble CBE, born 7 February 1948, was for many years a member of the New Zealand Parliament. Initially a member of the Labour Party, he joined the newly formed ACT New Zealand party under Roger Douglas in 1996.-Early life:...
(his old ally from their days in the
LabourThe New Zealand Labour Party is a New Zealand political party. It describes itself as centre-left and socially liberal, and Progressive, and has been one of the two primary parties of New Zealand politics since 1935....
caucus).
Douglas remained a strong supporter of the ACT party, although he became somewhat unhappy with the party's alleged lack of focus on pure economic policy. In particular, Douglas criticised what he saw as
populismPopulism is a political discourse that juxtaposes "the people" with "the elites." Populism may comprise an ideology urging social and political system changes and/or a rhetorical style deployed by members of political or social movements...
within the party, claiming that some of its MPs seem more committed to grabbing headlines than to developing policy. When in April 2004 Prebble announced his decision to retire, Douglas spoke out in favour of
Stephen FranksStephen Franks in Wellington, New Zealand is a commercial lawyer working for Chapman Tripp. At one time, he was Chairman and Partner of this firm. Franks has been a member of two political parties. He previously served as a List MP for the centre-right Act New Zealand...
and
Ken ShirleyKenneth Lex Shirley , generally called Ken Shirley, is a New Zealand politician. He is a member of the ACT New Zealand party, although was previously a member and Cabinet minister of the Labour Party.-Member of Parliament:...
as possible successors — the other main contender in the leadership race,
Rodney HideRodney Hide is a New Zealand politician who became leader of the political party ACT New Zealand in 2004. Since 2005, he has represented the electorate of Epsom as its Member of Parliament...
, had a reputation for advocating the style that Douglas condemned. Hide won the leadership and heads the ACT party.
On 2 December 2004, both Douglas and Quigley announced that they would step down as patrons of ACT. They stated as the reason that they wished to have more freedom to disagree with the party publicly.
On 21 February 2008, Douglas renewed his involvement with the ACT party by signing a letter inviting supporters to the 2008 ACT conference, and appearing in television and newspaper interviews endorsing ACT for the
2008 general electionThe people of New Zealand voted in a general election on 8 November 2008 to determine the composition of the 49th New Zealand Parliament, and thus the makeup of the government of New Zealand for the three years to 2011. The centre-right National Party, headed by its Parliamentary leader John Key,...
. At ACT's 2008 annual conference in
AucklandThe Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with a population approaching 1.4 million residents, percent of the country's population. Demographic trends indicate that it will continue to grow faster than the rest...
, Douglas announced his intention to stand for Parliament again, as an ACT candidate. The announcement that he would run in the newly-created electorate of
HunuaHunua is the name of three seats in the New Zealand House of Representatives, all based at the south end of the Auckland urban area, and all named for the Hunua Ranges.-1978-84:...
came on 8 June 2008.
The ACT Party assigned Douglas the number three slot on its party list.
Douglas did not win the Hunua seat, but ACT's 3.65% share of the party vote gave it five seats, so he re-entered Parliament as a list MP. Prime Minister-elect
John KeyJohn Phillip Key is the 38th and current Prime Minister of New Zealand and leader of the New Zealand National Party.John Key entered the New Zealand House of Representatives in 2002 representing the north-west Auckland constituency of Helensville as a National MP, a seat that he has held since then...
had previously said that he would not give Douglas a
CabinetThe New Zealand Cabinet functions as the policy and decision-making body of the executive branch within the New Zealand government system. The Prime Minister and many Ministers of the Crown serve as members of the Cabinet....
position, but Douglas indicated a wish for a review of this stance.
The Roger Award
In 1997, in a back-handed compliment, the founders of the annual award for "The Worst Transnational Corporation operating in New Zealand", as voted by "four or five eminent judges – academics, community leaders, artists, even sportspeople", named it the "
Roger AwardThe Roger Award For The Worst Transnational Corporation Operating in New Zealand is an annual media campaign run since 1997 by two activist organisations, Campaign Against Foreign Control of Aotearoa and GATT Watchdog...
" after Sir Roger Douglas.
Outside politics
During his absence from national politics Douglas held senior positions at a number of prominent companies such as
BILSir Ronald Alfred "Ron" Brierley is a New Zealand investor and corporate raider, chairman and director of a number of companies in Australia, New Zealand and the UK. He founded "R. A. Brierley Investments" in March 1961 with no capital...
which he briefly served as
Executive ChairmanThe post of Executive Chairman is the highest internal position within a company . The job combines the duties carried out by the Chief Executive and the Chairman. The post is usually given to a long serving, experienced Chief Executive....
. He also serves as the managing director of his own group, Roger Douglas Associates.
External links
- http://www.rogerdouglas.org.nz/
- http://www.roger4hunua.com/