NZ's trust economy maybe at risk

 

New Zealand is undergoing some serious demographic shifts. Last year, we saw about 170,000 net migrations: 50,000 people left, and 220,000 people arrived. For a country with around 5 million people, that's a significant bump of about 3-4%. Most of these new arrivals are heading straight for Auckland, perceived to be having more opportunities. This means Auckland is experiencing an even higher influx percentage-wise.

When I landed in New Zealand four years ago, I experienced a bit of a culture shock. I coined it the "trust economy" – a culture where honesty and transparency are the norm. People here are straightforward and reliable, whether they’re buying and selling on Trade Me or just keeping their word. Its common, for instance, for people to click a close-up photo of a chair that may have its paint chipped in a corner in a trade-me ad. At a recent company event, a director said he trusts everyone until they give him a reason not to. That pretty much nails the Kiwi ethos.

But here’s the thing: with more people coming in from outside, this trust dynamic is bound to shift. Different cultures have different takes on trust. It’s no secret that not all cultures might put transparency and honesty on the same pedestal as New Zealand does. I think it is a given here. As more Kiwis leave – we're talking 40,000 to 50,000 a year – and more migrants arrive, the country’s social fabric is likely to change. This rapid demographic transformation could challenge the existing levels of trust and transparency.

For instance, in India, it’s not uncommon to lie in business dealings or at school if you haven't finished your homework. Recently my architect was late for a meeting, which is very uncommon here as people are punctual. But he did not offer any excuse and just said that he was enjoying his lunch and suddenly realised that he was going to be late. Here in New Zealand, kids don’t lie about unfinished homework because it’s acceptable not to finish it – no reprimands. In India, though, the consequences can be harsh, creating an incentive to lie. I'm not judging which method is better, just pointing out that the stakes for honesty are different in different cultures. Perhaps if you are too honest, you may not survive in many of them. 

Anyways the question is, will this influx of diverse cultures disrupt New Zealand’s ‘trust economy’? It’s a delicate balance, and I’m keen to see how NZ will adapt to these changes over time.