Graham Scott
Graham Scott is amongst the most consequential of New Zealand’s economists, having been
continuously active in public policy in this country and internationally for almost 60 years.
His academic career is impressive – University of Canterbury (M.Comm, Economics and
Accountancy), Duke University (MA, PhD, Economics with minor in city and regional planning at the
University of North Carolina).
Graham’s early work included a period at Lincoln College in the Department of Agricultural
Economics where he was engaged in the development of an input-output model of New Zealand and
conducted an econometric investigation of investment in New Zealand, while also teaching
international trade and macroeconomics. He undertook consultancy in fields such as energy policy,
commercial regulation and city and regional planning, including with the NZIER. There was also a
stint as a researcher with the US National Planning Association in Washington DC.
He took up a position as Economic Policy Advisor in the Department of Prime Minister and Cabinet in
the Muldoon era of the late 1970’s before assuming senior positions in the New Zealand Treasury
with responsibility for economic policy, tax policy, fiscal policy and debt management. That period
shaped the Treasury’s thinking about the policy reform agenda which emerged with the post 1984
Labour Government.
In 1986 Graham was appointed Secretary of the Treasury, holding that position for 7 years. His
impact was substantial in those challenging years, proving both very positive and enduring.
Significant achievements through that period were many and broad but chief amongst them were:
- The design and implementation of new approaches to fiscal policy and public management, revolutionizing the way NZ governments manage their financial affairs. The introduction of accrual accounting methodology in the public accounts is one example of this work which has had international influence.
- Development of the State Sector Act and the Public Finance Act, devolving financial authority and accountability to departments and introducing output-based budgeting and performance management.
- Initial development of the pioneering Fiscal Responsibility Act, strengthening accountabilities and sound principles of fiscal management in a medium and long-term framework.
- Establishing the Debt Management Office within the Treasury and with that the introduction of modern portfolio management techniques to Crown debt and financial assets.
A consulting career followed Graham’s time at the Treasury. He has since advised around 50 countries, both developing and leading OECD nations, on a wide range of matters from public sector management and reform, fiscal management, debt management, education and health policy. Graham’s advice has been sought, and well appreciated, by bodies such as the World Bank, IMF, OECD, USAID and others.
He remained active in New Zealand also with roles across a wide range of sectors such as Chairing the Central Regional Health Authority; the Health Funding Authority; the Electricity Market Company; as well as several advisory groups to Industry and the NZ Government. I am deeply appreciative of the eight years he served as a Commissioner of the New Zealand Productivity Commission.
Throughout his career, Graham has produced a wide range of published articles and books of real
significance. His publications list runs to around 40. A number of those have had widespread and
enduring influence, perhaps most notably his book from 2001 entitled “Public Management in New
Zealand. Lessons and Challenges”. This has been referenced widely around the world and within the
major international economic agencies.
Now in his 80’s, Graham continues his work on vital public policy issues as a consulting director of
Sapere. He is actively interested in matters of regulatory reform at the system level and has worked
for many years on social policy issues. A particular interest has been the development of the
investment approach to entrenched social disadvantage and how it might be implemented in the
wider public policy context. Learn more at his keynote address tomorrow morning.
Few economists anywhere are as capable of the cogent, incisive, clear articulation of complex
economic and public policy issues that Graham routinely displays. He places issues into their broader
policy context and is able to carry his theoretical constructs into a pragmatic understanding of the
challenges of how to put policy into practice. He brings to issues of the day a deep knowledge and
understanding of the relevant academic literature married to an equally deep understanding of the
practical and institutional challenges of policy implementation. He can sometimes be heard
commenting approvingly on the qualities of another economist by describing them as “an
economist’s economist”. By that he means an economist with a deep familiarity with the literature
and concepts of economics coupled with a capacity to bring that knowledge and those concepts to
bear on the issues of the day. Graham is an economist’s economist.
He has maintained a close engagement with leading thinkers in his fields of interest and enjoys
nothing more than a robust debate on a contentious policy matter. He has been, and continues to
be, a sought-after and generous mentor and advisor to young economists and others with interests
in public policy. Many young NZ economists have benefitted from his insights, advice and
encouragement.
To quote Sir Roderick Deane from a speech marking Graham’s 80th birthday, “…it would be fair to say
that no one has made a greater contribution to improving New Zealand’s economic policies and
government management in the past several decades than Graham Scott.”
He is a very worthy and distinguished Distinguished Fellow.
Murray Sherwin
4 July, 2024
