Case Study

• Go back

• View All Content Articles Press Releases Case Studies Events and Highlights
• From All Legatum Sites Legatum Capital Legatum Ventures Legatum Institute Legatum Center at MIT Legatum Foundation
• Keywords None Adoption Africa Aid Alternative Energy Anti-trafficking Asia Banking and Financial Institutions Business Business is Development Capital Allocation Capitalism Children China Civil liberties Climate Change Conflict Conservatism Corruption Democracy Development Disaster Relief Economic Empowerment Economics Economy Education Energy Entrepreneurship Environment Equality Ethics Europe Financial Crisis Food Foreign Policy Free Markets Freedom Gender Geneva Global Governance Government Happiness Health & Medical History Human Liberty Human Rights Humanitarian Assistance Hunger Index India Inequality Investing Iqbal Quadir Iran Japan Korea Latin America Law Legatum Center Life Satisfaction Management Marketing & PR Microfinance Middle East Neglected Tropical Diseases Philanthropy Policy Politics Poverty Private Enterprise Prizes Prosperity Prosperity Index Religion Research Russia Security Social Capital Social Networking Sovereign Technology Telecommunications Terrorism Trade Trafficking UK USA War Women’s Empowerment Youth

New Zealand

Legatum Capital continues the legacy of Sovereign Global which was de-merged in December 2006. Sovereign Global was founded in 1986 by two New Zealanders, Christopher and Richard Chandler. Beginnings The company evolved from a manufacturing, importing, retailing and property development group established in New Zealand in 1972. In 1986, Messrs Chandler decided to change the business from building commercial businesses to capital management in the larger and more robust international markets. They therefore divested the New Zealand trading businesses and founded Sovereign Investment as an international capital management company. Learning about Business Cycles The lessons learned in small and medium sized businesses in the competitive New Zealand market were to be immensely beneficial in the larger global marketplace. Such daily challenges as the high cost of capital, volatile economic cycles and discriminating consumers provided formative experiences which led to the development of effective risk management techniques and an understanding of the need to constantly evaluate and innovate the business. Learning about Transition Economies The successful development of New Zealand's economy from a small and isolated agricultural nation is a case study in development economics. Since the early 1980s, New Zealand has prospered by opening its markets and deregulating barriers to business activity. It is one of the world's most transparent societies offering equal opportunities based upon a strong Anglo-Saxon legal system. The experiences gained in New Zealand's rapidly evolving economy of the 1980s provided an understanding of a transition economy which would prove helpful in recognising inflection points in other countries.

Background A democratic and wealthy Pacific nation of 4.1 million people, New Zealand’s principal racial divide is between the majority European population and the indigenous and largely poorer Maori community. Since a government decision in the 1980s to embrace free market reform, New Zealand has been transformed into a prosperous and diversified economy. A landmark free-trade agreement with China was signed in April 2008. As a major agricultural exporter, New Zealand is also well positioned to benefit from high global food prices. The country’s unspoiled natural beauty attracts many international visitors, with tourism accounting for 9% of GDP. For more information, please visit the Legatum Prosperity Index country profile of New Zealand: Prosperity Index Country Profile