In order to analyse this policy issue analytical strategies will be used to effectively show how Maori methods of sustainability may aid our country in becoming more sustainable. By using Market Analysis this report will examine suitable methods central and local governments may use in order to become more environmentally sustainable. One of the analytical tools within Market Analysis used in analysing this policy issue is the privatisation of Common Pool Resources (CPR). The Sealord Deal in 1992 will be used as a case study to show firstly how the privatisation of a CPR can be economically and sustainably viable for New Zealand; and secondly how a partnership with Maori and the government can be economically advancing and environmentally sustainable at the same time.
Market failure is useful in analysing the economic efficiency of Common Pool Resources that are often depleted if regulations are not in place. CPR’s, Mintrom explains, are “naturally-occurring things we all value”; these include airwaves, the sea, forests and wildlife.[1] When there are no regulations or property rights over CPR’s the “motivations of self-interest” often result in the depletion or reduction of natural resources.[2] This is the complete opposite of what sustainable development promotes, and therefore an issue for our environment.
Mintrom believes it may be easier to privatise CPR’s because it “forces people to recognise the value of the resource”.[3] He further adds that if “access permits and rights granted within the permits are closely informed by knowledge of the resource, the market can operate effectively while promoting sustainability”.[4] Privatising a CPR, such as through fishing quotas, highlights the awareness of how renewable resources are and attracts attention to sustainability practices. Market Failure Analysis is therefore a useful tool in analysing how effective the inclusion of Maori sustainability methods will be for our economy as well as our environment if implemented appropriately.
[1] Mintrom, M. 2010, 195.
[2] Ibid.
[3] Mintrom, 198.
[4] Ibid.