2.5 Pacific peoples, inequity and
neoliberalism
The literature suggests that it is important to
contextualise the Pacific Pay Gap and workplace
experiences of Pacific peoples in terms of the rise of
neoliberalism in Aotearoa New Zealand. This review
adopts the broad definition of neoliberalism offered
by Barnett and Bagshaw, who define neoliberalism as
a “political/economic model” with the following three
elements:32
Economic restructuring, markets and
privatisation—increased competition; removal
of the state from commercial activity, greater
openness to international trade and investment,
freedom of movement of capital, labour and
goods (‘globalisation’).
Limiting public expenditure on social services,
including healthcare and education, and
infrastructure, with debt reduction the major goal
(later called ‘austerity’ policies).
Deregulation and promotion of individual
responsibility—limiting government regulation
that might inhibit economic activity, despite risks
to personal health and safety or the environment,
giving priority to individual responsibility
and ‘choice’ over concepts of ‘public good’ or
‘community’.
In regard to Pacific peoples, Mila notes that the
decades following the Dawn Raids saw the living
conditions of Pacific peoples progressively worsen
due to the neoliberal reforms introduced by the
Labour Government’s Minister of Finance Roger
Douglas from 1984–1992.33 For example, the removal
of protective tariffs for manufacturing industries
resulted in mass job losses among Māori and Pacific
peoples,34 which helped to see the unemployment
rate of Pacific peoples rise significantly from 6
percent to 29 percent within a decade.35 In 1986,
Pacific peoples earned a real median income that was
89 percent of the national real median income, and
within five years, this plummeted to 69 percent.36
Due to the persistence of neoliberal laws and
policies today,37 the socioeconomic position of
Pacific peoples has never recovered. For example,
Pacific peoples currently have disproportionately
high unemployment rates, with 7.8 percent of Pacific
peoples being unemployed compared to 3.9 percent
of the total population.38 Furthermore, Pacific peoples
have the lowest median wealth in the country of
$15,000 compared to European household net worth
of $138,000.39
Unfortunately, there is a lack of literature exploring
the relationship between the rise of neoliberalism
in Aotearoa New Zealand and the Pacific Pay Gap
and the broader workplace experiences of Pacific
peoples. There is a growing body of literature on
32
Barnett, Pauline, and Philip Bagshaw. “Neoliberalism: What it is, How it Affects Health and What to do About it.” NZ Med. J 133
(2020): 77.
33
Mila, Karlo. “Only One Deck.” In Inequality: A New Zealand Crisis, edited by Max Rashbrooke, 96. Wellington: Bridget Williams
Books, 2013, citing: Ongley, Patrick. “Ethnicity, Migration and the Labour Market.” In Tangata Tangata: The Changing Ethnic
Contours of New Zealand, edited by Paul Spoonley, Cluny Macpherson, and David Pearson. Melbourne/Palmerston North:
Thomson/Dunmore Press, 2004. See also: Mila, Karlo. “Deconstructing the Big Brown Tails/Tales: Pasifika Peoples in
Aotearoa New Zealand.” In A Land of Milk and Honey? Making Sense of Aotearoa New Zealand, edited by Avril Bell, Vivienne
Elizabeth, Tracey McIntosh, and Matt Wynyard. Auckland: Auckland University Press, 2017.
34
Mila, “Only One Deck,” 96, citing: Bedford, Richard. “Pacific Islanders in New Zealand.” Espace Populations Sociétés 2 (1994):
187-200.
35
Mila, “Only One Deck,” 96, citing: Ongley, Patrick. “Immigration, Employment and Ethnic Relations.” In Nga Patai: Racism and
Ethnic Relations in Aotearoa/New Zealand, edited by Paul Spoonley, Cluny Macpherson, and David Pearson. Palmerston North:
Dunmore Press, 1996.
36
Mila, “Only One Deck,” 96, citing: Statistics New Zealand. Pacific Progress: A Report of the Economic Status of Pacific Peoples in
New Zealand. Wellington: Statistics New Zealand, 2002. https://www.stats.govt.nz/reports/pacific-progress-a-report-on-theeconomic-status-of-pacific-peoples-in-new-zealand.
37
Barnett and Bagshaw, “Neoliberalism”; Reynolds, David, Miranda Mirosa, and Hugh Campbell. “Food and
Vulnerability in Aotearoa/New Zealand: A Review and Theoretical Reframing of Food Insecurity, IncomeReview and
Neoliberalism.”Theoretical Reframing of Food Insecurity, Income and Neoliberalism.” New Zealand Sociology 35 (2020): 123152; Keddell, Emily. “The Vulnerable Child in Neoliberal Contexts: The Construction of Children in the Aotearoa New Zealand
Child Protection Reforms.” Childhood 25 (2018): 93-108.
38
Ministry of Business, Innovation & Employment. Pacific Peoples in the Labour Market – June 2021 Quarter (Unadjusted). https://
www.mbie.govt.nz/dmsdocument/16895-pacific-peoples-in-the-labour-market-june-2021-quarter.
39
https://www.stats.govt.nz/information-releases/household-net-worth-statistics-year-ended-june-2018.
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