WELLINGTON -- It's clear that New Zealand's size is both a curse and a blessing. The curse is easy to see: New Zealand is so small that it's hard to get the attention of other governments. New Zealand is responsible for 0.22 percent of world trade. There are more Indonesian civil servants than New Zealanders. Seoul's police force is bigger than the country's military.
Although Asia doesn't seem to give much notice to New Zealand, New Zealanders are acutely aware of Asia's importance to them and their future. Exports to Asia are half again as big as those to the Americas and twice the size of exports to Europe. The region gets 20 percent of New Zealand's investment. One-third of tourism revenue comes from Asian visitors; 80 percent of international education revenue -- English schools and other degrees -- flows from the 50,000 Asian students in the country. One of every 15 New Zealanders is of Asian descent.
Prime Minister Helen Clark says New Zealand "recognizes the importance of Asia to our prosperity and security." The country's business and political elite know that geographically they have a real advantage: They are on the doorstep of the world's most dynamic region. Yet they are worried and with good reason: Despite Asia's red-hot growth, some 5 to 6 percent each year, New Zealand's exports to Asian markets as a share of total exports have been falling.