Economic Development in the 19th Century
The sheep ranching industry was the foundation of New Zealand’s early economic development.The mild and moist climate allowed grass to grow year round，making it very easy to feed sheep.The first sheep was introduced to New Zealand from Australia in the 1840s.
In 1861，gold was discovered in Otago in the southern part of the South Island.The resulting gold rush brought not only gold miners，but also people from a wide variety of other professions，such as merchants，bankers，lawyers and journalists.The new population provided a reliable market for farmers and stimulated agricultural development.Within five years after the discovery of gold，the white population in New Zealand almost tripled，and the value of the country’s exports in 1866 was nine times as much as that of 1860.
When the gold rush ended，most of the newcomers settled down to farming.However，much of the undeveloped land was either controlled by large landowners or blocked by mountains and rivers.The government began a vigorous public works program to make the land accessible.Roads，railways，wharves，and telegraph systems were built at tremendous speed.By 1887，New Zealand had 1，700 miles of railway.This promoted further immigration，and by the end of the decade，the white population of New Zealand reached half a million.
However，the economy of New Zealand depended heavily on export markets.When wool prices fell on the world market fell in the late 1870s and 1880s，the country’s economy went into recession.Many people put pressure on the government should do something about the economy.
During the last decade of the 19th century，the government carried out a series of reforms with a view to stimulating economic growth.Firstly，it tackled the land problem.New Zealand had plenty of land，but small farmers could not cultivate it because most of the fertile areas were controlled by a small group of major landholders and speculators who earned large profits by selling the land at a very high prices.As a result，huge areas were left undeveloped.In order to free up more land，the government introduced a graduated land tax to encourage the large landowners to sell their holdings at reasonable prices.The government also made vast land purchases from large land holders and broke them into smaller parcels.It then provided easy credit for people to buy and farm these parcels.
Secondly，the government took measures to address industrial problems.Laws were passed to regulate wages and working conditions，and to provide accident compensation.The government also made arbitration compulsory to solve labor disputes.
Finally，the government also implemented social reforms.Women over the age of 21 were given the right to vote in 1893，and divorce was made legal in 1898.With the help of the women’s vote，the government was able to pass laws which provided for more social welfare programs.The most important measure was the Old Age Pensions Act of 1898 which provided￡18 a year to people over 65 years old.In 1900，the State Department of Health was established to provide improved healthcare services.These reforms were successful in benefiting the public，and New Zealand became known throughout the world as a laboratory for social equality.