NEW ZEALAND’S WELL-BEING ECONOMY MODEL
- Aytül Yüksel
- 4 gün önce
- 6 dakikada okunur
The Case of New Zealand and Its Relationship with the Climate Crisis
Dear readers,
Thanks for reading! Subscribe for free to receive new posts and support my work.
In this special issue, we explore the well-being economy as an alternative to traditional economic models, focusing on New Zealand's example and the role this model plays in addressing the climate crisis. As the world faces multiple crises, New Zealand’s pioneering practices offer important lessons on redefining economic prosperity and protecting planetary health.
We hope you enjoy the read.
An Innovative Alternative to Traditional Economic Thinking
In 2019, New Zealand became the first country in the world to introduce a "Wellbeing Budget." Led by then Prime Minister Jacinda Ardern, the government adopted a groundbreaking economic model that prioritized quality of life and environmental sustainability over economic growth alone.
The core philosophy behind this model is clear: “GDP alone is not enough to measure a nation's success.” In Ardern’s words, “Economic growth matters, but it alone does not guarantee improvements in the quality of life for our people.”
The Wellbeing Budget: Five Core Priorities
New Zealand’s well-being economy structures its national budget around five key priorities:
Mental and physical health: Improving the overall health of all New Zealanders
Skill development and job opportunities: Equipping people with skills for the future economy
Strong identity, culture, and communities: Strengthening community bonds and protecting cultural heritage
Environmental sustainability: Preserving natural resources and addressing climate change
Income, consumption, and well-being: Ensuring income adequacy and social protection for all
These priorities shape annual budget allocations and policy decisions.
The Living Standards Framework (LSF)
Developed by New Zealand’s Treasury, the Living Standards Framework is an analytical tool that supports the implementation of the well-being economy. It assesses well-being across four types of capital:
Type of Capital
Natural Capital - Environmental resources - Air and water quality, biodiversity, soil productivity
Social Capital - Social connections - Institutional trust, cultural identity, social participation
Human Capital - Individual capabilities - Health status, education level, skills
Financial/Physical Capital - Economic assets - Infrastructure, housing, production tools
This framework helps policymakers evaluate the impacts of their decisions not only on financial capital but on all forms of capital.
Te Ao Māori: Integrating Indigenous Wisdom
New Zealand’s well-being economy incorporates the Māori worldview known as Te Ao Māori, which adds depth and sustainability to the model.
Key concepts from Te Ao Māori include:
Kaitiakitanga: Guardianship and responsible stewardship of nature
Manaakitanga: Hospitality, generosity, and community care
Whanaungatanga: The importance of extended family and relationships
Mana Whenua: The sacred connection to land
These principles encourage intergenerational thinking and emphasize the mutual dependence between people and nature.
WELL-BEING ECONOMY AND THE CLIMATE CRISIS
The Climate Change Response Act: Legal Framework
One of the most concrete reflections of the well-being approach in climate action is the Climate Change Response (Zero Carbon) Amendment Act passed in 2019. This law strengthens the environmental sustainability pillar of the well-being economy.
Key features of the law:
Net-zero carbon dioxide emissions by 2050
Methane emissions reduction of 24–47% by 2050
Establishment of an independent Climate Change Commission
Five-year carbon budgets and climate adaptation plans
Policies and Practices
Key climate-related initiatives within New Zealand’s well-being economy include:
Renewable Energy Transition ~84% of electricity is from renewables. The target is 100% by 2035, with support from hydro, geothermal, and wind energy.
Carbon Pricing System The Emissions Trading Scheme (ETS), in place since 2008, has been enhanced to align with the well-being model. It puts a price on emissions, encouraging sustainable choices.
One Billion Trees Program Aims to plant one billion trees by 2028, enhancing carbon sinks, biodiversity, and erosion control.
Agricultural Emissions Mitigation About 48% of New Zealand’s emissions come from agriculture. The government supports farmers with training, research, and funding for sustainable practices.
Climate Adaptation Planning Community-based adaptation plans are developed, especially for coastal communities, addressing sea level rise and extreme weather events.
Advantages of the Well-Being Economy in Climate Action
Long-Term Perspective Prioritizes intergenerational equity over short-term gains
Internalizing Environmental Costs Incorporates climate impacts into economic decision-making
Just Transition Potential Accounts for the social impacts of the low-carbon transition
Valuing Cultural Wisdom Leverages indigenous perspectives for sustainable living
Holistic Well-being Approach Sees the climate crisis as a societal well-being issue, not just environmental
The Need for a Holistic Approach
The climate crisis must be addressed as an environmental, economic, and social issue. The well-being economy enables this holistic perspective by considering the societal impacts of climate change.
“Climate change is not just an environmental issue; it is a well-being issue. Only with holistic approaches can we succeed.” – Dr. Aroha Harris, Member of the New Zealand Climate Change Commission
Importance of Local Cultural Values
Indigenous ways of living in harmony with nature can enrich sustainable policymaking. New Zealand’s integration of Māori wisdom into its economic model offers a powerful ethical framework for natural resource protection.
Role of Institutions
Independent institutions and legal frameworks can shield long-term climate goals from political shifts. New Zealand’s Climate Change Commission holds governments accountable and ensures continuity.
Measurement and Accountability Systems
Well-being indicators are effective tools for tracking climate progress and ensuring transparency. Regular assessments allow for evaluation of policy outcomes.
PRACTICAL RECOMMENDATIONS
For Policymakers:
Develop comprehensive well-being indicators beyond GDP
Integrate climate policy across all ministries and institutions
Incorporate indigenous knowledge in policymaking
Combine carbon pricing with just transition strategies
For Businesses:
Measure and report social and environmental impacts alongside financial performance
Align business models with the low-carbon economy
Create well-being-oriented work conditions for employees and communities
For Individuals:
Reflect on your consumption habits and choose sustainable alternatives
Participate in local climate action and resilience initiatives
Incorporate the well-being perspective into your daily choices
WELL-BEING ECONOMY FROM AN ANATOLIAN PERSPECTIVE
While examining New Zealand’s approach to the well-being economy and climate action, we are reminded of Anatolia’s millennia-old sustainable living practices and traditional wisdom. Anatolia, shaped by numerous civilizations, has long adapted to climate variability and holds a rich cultural heritage of resilience.
Traditional Sustainability Practices in Anatolia
Over centuries, Anatolian societies have embodied principles of the modern well-being economy in various ways:
İmece Culture: Community-Based Economy The communal labor tradition called imece prioritizes collective welfare over individual gain—closely aligned with the well-being model’s social capital dimension.
Waqf System: Sustainable Resource Management For centuries, waqfs (charitable trusts) have preserved natural and cultural assets, managing forests, water, and farmland sustainably—a clear parallel to natural capital principles.
Local Wisdom and Harmony with Nature Various regions developed climate-adapted practices, such as underground cities in Cappadocia, climate-sensitive architecture in Mardin, and dome-shaped houses in Harran that provide natural ventilation and thermal efficiency.
“Anatolia’s traditional wisdom is embedded in need-based production and consumption. The principle of taking only what is needed from nature and preserving it for future generations has been lived out here for centuries.” – Prof. Dr. Emine Yetişkul, Rural Development Expert
CONCLUSION
New Zealand’s well-being economy model demonstrates the importance of alternative economic systems in addressing the climate crisis. Moving beyond GDP-centric growth toward a model centered on environmental and human well-being offers more holistic and effective solutions.
Anatolia’s age-old practices and harmony with nature offer an inspiring treasure trove for the modern well-being economy. Combining New Zealand’s structured model with Anatolia’s cultural heritage could provide Turkey with a unique and powerful framework in the fight against climate change.
As we rethink economic success and recognize the inseparability of planetary and human health, lessons from both New Zealand and Anatolia can serve as valuable guides for all nations in the global climate struggle.
References
New Zealand Treasury, "Living Standards Framework" (2023)
Climate Change Commission, "NZ Emissions Budgets" (2024)
Wellbeing Economy Alliance, "WEAll Policy Design Guide" (2022)
Te Puni Kōkiri (Ministry for Māori Development), "Te Ao Māori and Environmental Sustainability" (2024)
What Are We Doing at Co-Climate?
Our mission is to bridge the gap between scientific knowledge and public understanding, ensuring that climate change messages resonate across diverse communities and stakeholders.
Does humanity need more hope or more action to tackle the climate crisis? Perhaps the real solution lies in balancing hope with action. But how? Share your thoughts with us and become part of the Co-Climate community!
Join Us:
Instagram: @co-climate
LinkedIn: @co-climate
Substack: @co-climate
This bulletin is prepared for everyone concerned about climate change and wondering what they can do. It is an invitation to think and act together. Artificial intelligence has been used in the preparation of this bulletin.
Comentarios