The remainder went to overseas investors. That intensified between 1990 and 1998, when almost half of the real economic growth has gone overseas. So in that way New Zealand made an economic growth which was seen as excellent to New Zealanders but in actual fact they were just being exploited by bigger smarter opposition. This then brings us to the relationship with the rest of the world: the direct signs of globalisation. Despite the government having reduced its debt (the public debt) substantially, with regard to that part which is owed overseas (the official overseas debt), all it has done is effectively to privatise it. Not only has overseas debt been privatised, but it has increased enormously. It has risen from $16 billion in 1984 (all public debt) to $99 billion in 1998 (80% private). .
This is not the only example for failure. The rise in the value of the New Zealand dollar, has made exports uncompetitive. The dollar rose because of huge inflows of foreign investment, partly attracted by interest rates that prevent many production-based enterprises from being viable, and partly attracted by privatisations. New Zealand has the highest level of foreign direct investment amongst developed countries. It exceeds the level in most Third World countries. Overseas companies probably make half of companies" operating surpluses in New Zealand (i.e. profits before interest and tax have been paid). They own about 60% of the shares on the stock exchange. They dominate most industrial sectors, including flour, bread, and biscuits, news media, oil, airlines, rail, computers, telecommunications, motor vehicles, office supplies, brewing, and pharmaceutical manufacture. The great majority of the incoming foreign investment has not created new assets or industry: it has taken over. The amount we pay to pay for the interest and dividends on the overseas debt and foreign investment here each year is more than the government pays for education and "law and order" together.