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Annual Report of the Treasury for the Year Ended 30 June 2014

A Higher Performing State Sector that New Zealanders Trust, Delivering Outstanding Results and Value for Money

The quality of expenditure, regulation and other interventions by State sector agencies has a significant impact on living standards in New Zealand. It impacts both directly and indirectly on New Zealand's stocks of financial and physical capital, human capital, social capital and natural capital. Given the significant impact it has, the State sector needs to do the right things in the right ways at the right time, and they must be affordable.

The quality of New Zealand's State sector institutions and governance ranks consistently highly in international datasets. Currently, New Zealand is ranked in the top 5% of countries on the World Bank's Worldwide Governance Indicators (WGI) across all six of the dimensions of governance measured, and our ranking has been reasonably stable since 1996. Standard and Poor's stated that they consider New Zealand's policy-making and political institutions to be highly effective, stable and predictable and that "high-quality governance and transparency is a key attribute of the New Zealand government".[1]

New Zealand also enjoys a high reputation internationally as a leader in the field of reform. Our interactions with government agencies and think tanks in the UK and Australia confirm that this reputation still holds and there is international interest in current Better Public Services reforms, particularly the Better Public Services Results approach.

Assessments of New Zealand

Institutions and governance

  • Second on public institutions in the World Economic Forum, Global Competitiveness Report 2013.
  • Fifth in respect of governance in the Bertelsmann Stiftung Sustainable Governance Indicators.
  • In the top 5% of countries on all six of the dimensions of governance in the WGI.


  • First equal (with Denmark) in the Transparency International Corruption Perceptions Index (2013).
  • In the 99th percentile on control of corruption in the WGI.
  • Third in respect of the absence of corruption.

Transparency rankings

  • Second on open government in the World Justice Project Rule of Law Index (following Norway).
  • First in the 2012 Open Budget Index; indicating that our Government provides the public with extensive information on the National Government's budget and financial activities.
  • Fourth in "transparency of government policy-making" in the World Economic Forum Global Competitiveness Report.
  • Fourth in the Global Open Data Barometer 2013 which takes into account readiness, implementation and impact of government open data initiatives.


  • [1]Standard and Poor's Report: Supplementary Analysis: New Zealand, published 29 August 2013. Subject to registration, this report is available at:
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