The forthcoming elections in New Zealand have been overshadowed by the world financial meltdown and the oncoming recession, which have highlighted the huge level of debt in the country’s economy. This all puts at risk the very ability of any government to guarantee basic social reforms. In New Zealand as elsewhere the choice is between whittling down the welfare state or a radical socialist transformation of society.

Prime Minister Helen Clark has called the general election for November 8th hoping to win a fourth term. The problem for the Labour Party is that it is well behind in the various opinion polls which give the National Party between an 8% and 18% lead over the Labour Party. With such a lead in the opinion polls the Labour Party is most likely to be defeated.

New Zealand is clearly entering into recession with its economy shrinking in the first quarter of this year. "Statistics New Zealand" (SNZ) has provided the figures that confirm what most of us have known for sometime that indeed we are at the beginning of a recession.

Subcategories