ABSTRACT
The beginning of 21st century, New Zealand begins another era in policy reconfiguration. The change to a centre-left Labour-led coalition government marks an ideological shift and acceptance of a new way of thinking in policy-influencing circles encompassing both social and economic considerations. The reform experience cannot be judged a success in view of raft of unsatisfactory economic and social outcomes. Politics in New Zealand is marked by the perennial struggle to resolve the issue of security in retirement. The focus of New Zealand's welfare state in the 21st century is on enhancing opportunities for economic and social participation. It is a 'capacity-building welfare state'. The Prime Minister, Helen Clark, wrote that 'we want a society which is inclusive of all ages, regions, ethnic and socioeconomic groups. We want a society in which everyone can claim a stake. The politics of exclusion and division which have characterised New Zealand for so long will not be practised by any Government he lead'.
