Yes, I am a bit of a Bah, Humbug type of person when it comes to Christmas. But, I do look forward to December every year for two reasons – cricket and sunshine.

These are the two things that vie for importance in my world next to economics and numbers.

Mind you they are all related.

That is, you cannot have cricket without sunshine.

And, to be honest, sunshine is not really of much use unless there is a cricket game to watch, score, play and/or umpire.

Some fanatics might argue that numbers were invented for cricket, but I could never go so far.

However, cricket without numbers (and the myriad of statistics that can go with them) is clearly meaningless.

That leaves the relationship between economics and cricket.

I will admit that this relationship is not widely understood, so please allow me to clarify.

While economics may not be a team sport, an economy will not function efficiently if its constituent individuals or members are not operating to their potential.

And the relationship between the members is critical.

If the dairy processing sector is underperforming, then the team is operating under a severe handicap, irrespective of how well the dairy farming sector is going.

Many will be familiar with the difficulties encountered in posting a respectable run total if the opening batsmen are not performing their role.
Likewise, accumulating a sufficient export earnings total will not be easy if the foundation is not set by the openers.

For the NZ economy, the opening batsmen are probably dairy processing and tourism, given their lead status in terms of export receipts.
This ordering may contravene the cardinal rule of sending in your best batsmen at number three.

But it is not as if we have an embarrassment of riches in order to adhere to such niceties. 

Forestry and meat are definitely up there in the export stakes, but the young guns of kiwifruit, wine and education are pressing their case for inclusion in the top tier.

Film may also be looking for inclusion in the team, perhaps for the shorter and, allegedly, more entertaining version of the sport.

But if export earnings are runs on the board, what is the equivalent of the wickets? And, consequently, who are the bowlers?

Acting as a break on export earnings are inflationary pressures. When inflation stalks the landscape export earnings become harder and harder to accumulate.

And when we are able to tackle inflation better than our competitors then the export markets and accompanying dollars flow in our direction much more easily. Mounting inflationary pressures while garnering export dollars can be seen as the equivalent of losing wickets during the accumulation of runs.

So, the bowlers in our team are the engineers, researchers, scientists, marketers and the industry training providers trying to keep our business ventures just that little bit ahead of the rest of the pack.

For these are the team players in the frontline of our inflation fight.

As any economist will (or should) tell you the only anti-inflation strategy that will be successful (or sustainable) over the long term is ongoing improvements in the level of productivity. Other options are not much more that short-term sticking plasters.

And productivity improvements require effort in the form of research from the inquiring minds of scientists and engineers.

The development of new business and production processes, the enhancement of skills to apply finely-tuned equipment to its utmost potential, or the nurturing of new customers in far flung places.

And if our bowlers are better than others, then we will fare relatively better in the inflation stakes.

Consequently, our batsmen (exporters) will be much better positioned to face the competition and so more able to accumulate runs (export dollars).

So, you see, there is not that much difference between economics and cricket.

And what can one learn from the other? As any purist will inform you cricket is best when it is played over a lengthy period – the longer the better.

Economics would do well to take note of this long-term horizon. Cricket should be played, at least, over five days.

Similarly, economics should be looking at five decades (five years is much too short for any investment to really pay off, and five generations is probably taking things a bit far).

The first two decades is when the top four have laid a solid foundation in export earnings and built momentum for the further accumulation of income.

Thereafter, the scientists, engineers et al. come into the equation to ensure inflation pressures do not eat away at the foundation.

Clearly, the policy-makers are the umpires (including the review authorities interrogating the video replays).

But, I hear you ask, where do economists fit in this world?

Well, with my econometrician colleagues in charge of the scoring and associated statistical regressions, you’ll find me in my natural home – the radio commentary box.

 - this article was initially published on the NZTE website