Gold Rush Legacy Lingers in NZ Economy

New Zealand's economy is built on outdated decisions that redistributed wealth and have had lasting impacts on the country. Dr. John Cossens argues that the foundation of the Otago region, which was born from gold, has its roots in whaling and farming.

The Weller brothers landed at Ōtākou in 1831 with muskets, grog, and whaling gear, and by 1843, their business had declined. They then turned to buying land, which would eventually become the Otago purchase of 400,000 acres for £2400 in 1844.

The Otago purchase was a contentious issue, as Ngāi Tahu expected that a tenth of the land would be reserved for them. However, this never happened, and the Waitangi Tribunal found that the Crown left them too little land.