The End of the Golden Weather

The end of the golden weather.....?

Comparisons between climatic change and the deteriorating economic environment both generate a sense of powerless. As the current global economy unravels the downstream impacts are now being felt in communities over New Zealand. People have lost their retirement savings, dreams of home ownership and jobs.

We have not experienced anything like this, we don’t know how this situation will run and without road maps out of this recession we have to rely on instinct. What we do know is that that money is restricted and people will be unemployed. Unable to pay debts and compromised in their capacity to support their families will lead to stress. We do have huge amounts of material, research and evidence that describe the impacts of stress on our social fabric – ask any community agency.

So in a time when society will be required to support itself in unprecedented ways we see the beginning of erosion of community infrastructure. Community law centres that provide legal advocacy for the most vulnerable New Zealanders have had budgets cut by 50%, and budget reductions for community providers of mental health services are being indicated by some funders.

For the community sector this is a time for leaders to come together , we have a short time to organise our thoughts and strategies and think together how we can minimise the potential impact of this enfolding crisis in our own back yard.

Possible scenarios

No new funding: less health contracting: less NGOs: less services: reduced diversity

Purchasing is limited to a reduced number of organisations

NGO services clawed back and delivered by DHBs

Protectionism rather than collaboration

With no new money the focus may need to be on the basics possibly looking to wider social capital. Increased unemployment may mean there is more involvement in civil society and participation in community.

Reducing the number of NGOs creates the opportunity to create consolidation, collaboration and reshape in ways that can still provide support to our communities. We don’t know what the future landscape will be but we do know it will look very different in the next 3 years and fundamentally different in the future.

Marion Blake March 6, 2009