Almost unnoticed by the Australian media, the British Conservative Party and the NZ National Party both dumped their leaders in the last couple of days. in one sense, the moves are in opposite directions. Iain Duncan Smith, the British Tory leader was the favourite of the Thatcherite branch membership who have, for the moment at least, a substantial say in choosing the party leader, similar to the Greens and Democrats in Australia. By contrast, the NZ Nationals dumped a moderate, Bill English, in favour of someone identified very closely with the radical free-market reforms of the 1990s, former NZRB governor Don Brash.
I’ve met Brash a couple of times and he strikes me as a decent and honest person. But he was a failure as a central banker, both because of the inflation-only policy target adopted under the National government and because of technical failures like the disastrous flirtation with a Monetary Conditions Index. Finally, although I can’t instantly produce a convincing supporting analysis, I am uneasy at the prospect of senior public servants resigning and going into politics.
What the Tories and NZ Nationals do have in common is that they are in deep electoral trouble. With two election losses behind them, neither party has managed to dissipate the popular hostility generated by periods in office that combined radical free-market policies with an authoritarian style (the Tories are still trying, without much success, to shake the tag of “the nasty party”.)
This is part of a more widespread problem for the conservative parties of the English-speaking world. The most common electoral situation is that in both Britain and NZ with a dominant Labour government, a discredited official opposition and the anti-government vote divided among several mutually hostile parties.