Title: MAORI SUSTAINABLE DEVELOPMENT IN TE PUKU O TE IKA MODULE 2
1MAORI SUSTAINABLE DEVELOPMENT IN TE PUKU O TE
IKAMODULE 2
- DEPARTMENT OF ECONOMICS
- and the
- SCHOOL OF MAORI AND PACIFIC DEVELOPMENT
2OBJECTIVES
- Decision making models -group and single
- Systems thinking
- Values Frameworks-whats important to you?
- Governance in Maori institutions
- Direction and focus groups
3DECISION MAKING MODELS
- What is decision making
- Styles of Decision making
- Different models for different situations
- Group and individual decision making
- Values in decision making
4DECISION MAKING
- Decision-making is defined as the process in
deciding between alternatives in relation to a
set criteria for a particular purpose or to solve
a problem. Firstly, this requires identifying and
structuring values and objective for those issues
that matter to the decision maker. This involves
separating values into fundamental objectives and
means objectives. Then different alternatives or
strategies are analysed and measured using
attributes against a set of specific criteria, to
see whether the alternative is suitable to use or
whether trade-offs need to be made between the
various required criteria (Olsen, 1997). -
- Barlow (1999) says there are six steps in
decision-making - Recognising the problem
- Establish evaluation criteria
- Identify alternative course of action
- Evaluate alternatives
- Select best alternative
- Implement choice
5Decision Making Style
- The way in which decisions are made is called the
decision-making style. Decision making styles can
be formal or informal, based on reason or not, or
involve groups or just individuals (Clemens,
1996). - Decisions can be subjective or objective based on
the credibility logic, which suggest that the
highest quality data is ignored due to subjective
analysis.
6Decision Making Style
- Informal decision-making occurs when decisions
are based on intuition or a past solution to a
similar decision situation. - Formal decisions on the other hand, make
elimination of alternatives based on best choice
-worse choice alternatives, which correlates
with the criteria set for making the decision. - Decision analysis, can be used to rank
objectives, criteria, attributes or alternatives
according to best choice or worst choice by using
ordinal or cardinal measures of preference
(Clemens, 1996). Decision analysis is can be
either multi-objective, multi-criteria, or
multi-attribute.
7Group decision making
- Group decision-making can be formal or
non-formal. The way in which decisions are made
depends on the group dynamics, motivations of the
group, existing knowledge, and the ability to
generated ideas to solve problems. - Group decision-making is the type in which
various individuals combine together to solve a
problem(s) requires the development of ideas for
alternatives and criteria. - Before analysing each alternative against a set
criteria of wants or needs. - Group decision-making is common in the planning
processes.
8Characteristics of the decision-making environment
(Barlow, 1999)
9Different decision making models
- A model on the other hand is a representation
of what happens in reality (Harper-Collins,
1992). Models can be either deterministic,
stochastic or non probabilistic, and based on
quantitative or qualitative information (Barlow,
1999). Models can be used to help make clarify
decision problems and identify what would be the
best course of action under different conditions
of certainty, risk and uncertainty. - Deterministic models describe behaviour on the
basis of some physical law and are based on
quantitative information and all variables are
known. - Stochastic (or probabilistic) models are based on
quantitative and qualitative information. There
all outcomes are known but the chances of
happening is probabilistic. The decision-maker
makes informed decisions. A time series is a
sample outcome from a stochastic process.
Non-probabilistic models are used when the
uncontrollable variables are unknown and that the
information is qualitative. These decisions are
made under uncertainty (Barlow, 1999).
10SYSTEMS THINKING
- Systems thinking is about studying the bases on
how systems works. We can model systems based on
identifying processes, and influenctial variables
and drivers.The modelling of a systems and the
associated decision making process is called
systems dynamics. The process of systems
dynamic modelling is presented on the next page. - Collection and types of information requirements
needed. - The modeller needs to have a good understanding
of different ecological, social and economic
systems to construct influence diagrams. - Technical problems associated with models
- As with all models, the model is only as good as
the information put in it. Models are a
representation of what happens in reality and may
incorporate inaccurate information. - Socio-economic problems because of the non-linear
positive feedback and shear size are simply not
amenable to the rigorous mathematics of control. - Advantages and disadvantages of the model
- Systems dynamic models help visualise problems
holistically - The software available is able to formulate
equations and graphs. - Able to incorporate biases and weighting factors
- The availability of commercially available
software - Ithink, cosmo, cosmic, dynamo, venison, Stella
- Learning needs for the modeller or decision maker
- To fully gain competence with the use of the
programmes available.
11Systems Dynamic Modeling
12Decision Situation
- When decision-makers is faced with making
important decisions there are several key issues
that the person needs to consider. - Sometimes a sequence of a series of decisions
needs to be made. These are called sequential
decisions (Figure 2.1). Decisions that are made
now will have an impact on what will happen in
the future. Many important decisions have to be
made without knowing exactly what will happen in
the future or exactly what the ultimate outcome
will be from a decision made today (Clemens,
1996). - Many different uncertain events may occur in a
decision situation but only some are relevant,
and these need to be identified before hand. If
the decision situation contains many uncertain
events, or some uncertain events are dependant on
other uncertain events, and complicates the
decision making process.
13Decision Situation
- Clemens (1996) says that if there are many
uncertain decisions that occur between decisions
there may be a natural order to the uncertain
events or there may be not. The time sequence of
the decisions is important, along with the
information available. Clemens (1996) also say
that uncertain events proceed a dovetail will a
sequence of decision. An arrow from a group of
uncertain events to a decision indicated that the
outcomes of those events are known at the time
the decision is made. - After the last decision has been made and the
last uncertain event has been resolves the
decision makers fate is finally determined. This
is called consequence or outcome.
14Influence Diagrams
- Influence diagrams (Figure 2.2) is mentioned in
Clemens (1996) and Coyle (1995) as a way for
structuring decisions problems. System dynamic
modelling uses influence diagrams to add feed
back loops which are more realistic in terms of
what happens in reality.
15Decision Trees
- Decision trees are mainly used in Multi attribute
utility theory, scenario planning, and simulation
models to analyse an undertake uncertainty and
risk decisions through lotteries (Mollaghasemi
and Pet Edwards, 1997). The decision tree
graphically portrays the decision problem and the
set of alternative solutions or outcome at the
end of the branches of the tree along with
expected values for that consequence/outcome
(shown by the dark blue box). Each branch
represents an alternative uncertainty in which
represents the probability of the outcome or
alternative succeeding where the branches meet
are the nodes for uncertain events (light blues
circles). While the decision is made at the green
box. (Figure 2.3). - Decision trees are useful in the sense that they
incorporate uncertainty, but the are restricted
in that every consequence is measured in monetary
terms, ignoring environmental or social costs. In
addition, because of the linearity of the model
re occurring variables or feedbacks are difficult
to add in. In practicality, they should be used
in combination with other decision-making models
or tools
16Objectives Heirarchies
- Analysis of problems with multiple criteria or
objectives require stages of identifying
objectives arranging their objectives into a
hierarchy and then measuring the performance of
available alternatives on each criterion. - The simplest hierarchy would involve value as an
objective with available alternatives branching
from this value node. Hierarchies generally
involve additional layers of objectives when the
number of branches exceeds some acceptable value.
Describes possible consequences in order to
provide a sound basis for value judgements about
the desirability of objective attainment levels. - Individuals need to consider fundamental value
function trading-off profit and other
consideration. - Alternatives are located on the bottom of the
hierarchy, are measured against all objectives
and criteria immediately superior if an all
objectives immediately superior to them on the
hierarchy. If an alternatives performance on an
objective is not measurable then drop objective.
Attributes are used to measure the performance of
alternatives. There are three types of
attributes, natural, co-structured, and proxy
(Box 2.1). Value judgements are required for
fundamental and means objectives (Olsen, 1997). - Clemens (1996) suggests that objectives hierarchy
and decision trees may be combined together in
multiples objectives problems to prioritise
different alternatives.
17MAUTMulti Attribute Utility Theory
- The type of problems that need to be solved
- Need to know what alternatives are available the
expected return and the probability of success. - Collection and types of information requirements
needed. - Requires modelling decision, uncertainty/risk,
and preferences/outcomes by the decision maker - Technical problems associated with models
- Requires linear structuring of problem with
decision trees, which can limit uncertainty to
economic gains/losses and not environmental or
social. - Advantages and disadvantages of the model
- Only decision model to incorporate uncertainty
into it - Values of weights wk are related to the values of
single dimensions utility sjk. Hence the SMARTS
program model was developed. This program uses
swing weights to change the score of some object
of evaluation of some duration. - A later model, SMARTER program model, uses rank
order to estimate the set of weights minmax
error by identifying the centriod of all
possible weights maintaining rank order of
objectives importance. It replaces obtaining
judgement weights with a calculator, and is base
on output of the first step with ordinal
approximations (Olsen, 1997). - The availability of commercially available
software - First Choice, SMART, SMARTS, and SMARTER
- Learning needs for the modeller or decision maker
- Requires an understanding of stochastic models,
simulations and scenario building.
18ANALYTICAL Heirarchy Process
- An alternative to the objectives hierarchy shown
in Figures 2.4 is Saatys objectives hierarchy
called the Analytical Hierarchy Process model
(Figure 2.5). Which places alternatives on the
second level under the objectives and places the
attributes at the bottom of the hierarchy
(Mollaghasemi and Pet Edwards, 1997).
19AHP Summary
- The type of problems that need to be solved
- Multicriteria and multi attribute preferences,
but not estimation of utility - Collection and types of information requirements
needed. - Requires a lot of interaction between the analyst
and the decision-makers to find the
decision-makers preferences. - Technical problems associated with models
- Requires a large use of linear programming
mathematics. - Advantages and disadvantages of the model
- Has problems with rank reversal happening when
changing variables in sensitivity analysis - Does not take into account uncertainty.
- Requires incremental analysis in the pair wise
comparisons to prevent the wrong conclusions
being made. - Also because the method uses pair wise
comparison, it can only make preferences between
2 alternatives at the same time. - Able to include group decision-making in to the
model. - The modeller must formulate the relevant
questions relating to pair-wise comparison of
preferences to the decision-maker and that the
alternatives, criteria, or attributes are
compensatory in nature when used in the pair wise
comparison interviews. - Very time consuming especially when interaction
needs to occur with other people - The availability of commercially available
software. - Expert Choice is commercially available for
making decision models. Model can be linked to
excel and visual basics software. - Learning needs for the modeller or decision maker
- AHP is very easy to learn
20Geometric Mean Technique-GMT
- The type of problems that need to be solved
- The GMT method is an extension to the AHP method,
and helps correct the problems associated with
AHP. The GMT method helps to analyse preference
data and to model the information. - Collection and types of information requirements
needed. - Requires the use of par wise comparison
interviews to gain insight into the preferences
of the decision-maker. - Technical problems associated with models
- There are no technical problems known as to this
date. - Advantages and disadvantages of the model
- GMT has the advantage that it prevents rank
reversal occurring. - Also is an added cost to the decision making
process, but if the decisions being made are
quite important then it may be useful to obtain a
copy. - The availability of commercially available
software - REMBRANDT software is commercially available as
an additional program to AHPs Expert Choice. - Learning needs for the modeller or decision maker
- The decision maker would need to have a
reasonable understanding of linear programming
mathematics to complete this program.
21Preference Cones
- The type of problems that need to be solved
- Preference cones can be used to in ranking
alternatives, in port folio management,
investment, environmental and social issues. - Collection and types of information requirements
needed. - Similar to AHP method the Preference cones method
asks decision-makers whether a trade-off is
desirable or not. - Technical problems associated with models
- A possible concern is that when the decision
maker is uncertain about which choice is
preferred the impact selecting one of the other
alternative can be quite drastic with the cone
possible eliminated a number of remaining
alternatives based on an uncertain choice. - Because linear programming is associated with
decision models that have a known outcome, when a
decision is made on an uncertain choice
alternative the model could be wrong. - Advantages and disadvantages of the model
- The preference cone model has the advantage that
it is able to eliminate large amounts of
alternatives into a smaller set of alternatives
for re selection. - Non-dominated solutions is gauranteed
- Assumptions are non restrictive.
- The availability of commercially available
software - It is unknown from this literature review if
there are any commercially available software
available for preference cones. But because
simple linear programming is used it is likely
that Excel and be used to model the preferences
using the method. - Learning needs for the modeller or decision maker
- Preference Cones method is easy to learn but the
interaction of the decision maker to the problems
increases with size.
22Outranking Methods
- The type of problems that need to be solved
- Outranking methods are used to reduces the number
of alternatives solutions to a smaller number and
to rank the subset selected to a small specific
set of criteria. - Collection and types of information requirements
needed. - Information requires that weightings and values
are placed into the model, also information about
criteria. - Technical problems associated with models
- The model is limited as to the amount of criteria
that the alternatives can be ranked with. - If the alternatives require different criteria
for ranking each of them with then this will
cause error. - Advantages and disadvantages of the model
- The models are simplistic in nature and hence
tend to be limited in that they do not
incorporated a large amount of preferences or
criteria. - However the model is simple to use and can be
used to form simple matrices and ranks the - The assumptions are non restrictive .
- Decision making preferences structure is captured
as a partial ordering. - The availability of commercially available
software - Several outranking models exist including Electre
1,2,3,4,5, Promethee,1,2, Gaia Output - Learning needs for the modeller or decision maker
- The models are quite simple to use and can be
learned in a short
23Types of Information required for different
Decision Making Models
24Decision Making Sub Models for Environment,
Social, Economics, Culture
- Economic Models
- Investment Decisions (Capital Budgeting)
- Investment decisions (also called capital
budgeting) is the allocation and reallocation of
capital and resource to projects and products
assets and division of an organisations. - Finance Decisions
- Financing decisions are concerned deterring the
best capital structure for the firm and includes
examining various methods by which the firm can
raise capital (eg, issuing stock, increasing
debt, selling assets or combination). Short and
long term decisions must be considered for the
working capital. Financial ratios are the most
widely used method for determine an organisation
strengths and weakness in investment, financing
and dividend. Financial ratios can signal
strengths and weakness in management, marketing,
production, research and development, and
computer information. The key ratios are debt to
equity, and debt to total asset ratio (David,
1995). - Financial ratios are important in business
because they will indicate the level of financial
risk involved with an investment. However, not
all risk is reported, and companies may have
different accounting systems making it difficult
to make comparisons. - Dividend Decisions
- Dividend decisions are concerned with the
earnings paid to stockholders the stability of
dividend paid over time and the repurchasing or
issuing of stock (David, 1995)
25Financial Ratios
- __________________________________________________
_________________ - Financial ratios are divided up into six types
- 1. Industry ratios
- 2. Growth ratios- sales, price-earning ratio,
dividend per share, income, earnings per share - 3. Leverage ratio- debt to total asset, debt
to equity, long term debt to equity, Time-
interest earned ration - 4. Activity ratios- inventory turnout, fixed
asset turnover, account receivable turnover,
average collection - 5. Profitability ratios- gross profit margin,
return on stockholder equity, operation profit
margin, net profit margin, return on total
assets, earning per share. - 6. Liquidity ratios- current, and quick
- __________________________________________________
________ - (Source David, 1995)
- Rivett (1972) said that cashflows can be at any
one time positive or negative. A positive flow of
cash means cash is being returned to us from the
investment and a negative flow of cash means that
at that moment money is flowing out from us to
the investment. - The number expresses the attractiveness of the
flow of cash. There are four such single numbers
that are commonly used - Average rate of returning- estimates the rate at
which the investment is yielding money to use in
terms of its initial cash input. - Payback period is the time that elapses between
making the decision and receiving back the amount
of the investment. We may look at the time at
which money is returned. - The present worth criterion discounts future
returned of cash, it does this by assuming a rate
of interest which can be earned by the money
which is yielding form an investment once we have
got it back (called Present Value). -
- Present value PV ?ai/(1r)i
- ( Equation 17)
26Environmental Decision making Models
- Environmental Impact Assessments aid
decision-making by looking at the impacts of
certain developments, projects or policies on the
environment. - Environmental Impact Assessment (EIA) can be used
in town, environmental, or project planning, but
also in selecting the viability of development
projects or business investments (for example
life cycle assessments). An EIA can be used to
identify impacts from various alternative
developments of proposals, and look at what can
be done to mitigate the impacts of various
alternatives. - Overlay maps can be used in respect to spatial
analysis through spatial decision support systems
(such as Geographic Information Systems) to
display information and assist in decision making
by helping a decision maker to visually
understand the problems that the decision maker
is faced with. Overlays are a common tool in
planning and for quickly identifying decision
problems. - Overlays can be transparencies or computer
generated map layers on a geographical
information system, and also can be used in
forming plans for areas that are to have zones
for land use capability, vegetation, population,
geology, water resources, and infrastructure.
Proposed developments can be analysed to is
suitability for the receiving environment if the
natural resources have been clearly demarcated.
For some decision-makers overlays can be a useful
tool to convey information visually. - Associated with and EIA will be a cost-benefit
analysis that will convert all the impacts of the
project or business into monetary terms. - Ecological population models come in three forms
exponential, logistic, and discrete time
analogues (Sharov, 1997). Generally a population
models uses information from initial population
size, birth rate, death rate, longevity, and the
percentage of males to females to for a fair
understanding about future population sizes and
population dynamics. Geographical information
systems (GIS) can use statistical data formed
from a census to spatially track the dispersal of
humans over time and to analyse the position of
new customers, markets, and distribution routes
(ESRI, 2001). GIS systems also can be used to
identify the iwi population/group clusters that
may require additional help in certain
geographical areas. The United Nations (1996)
have developed a computer based information and
decision support system called PopMap to help
governments and non government organisations for
planning purposes.
27Social Decision Making Models
- Social Impact Assessment
- Social Impact Assessments are used to determine
the impact of a development, project or policy on
a group of people. The World Bank and the United
Nations use social impact assessments when
developments are controversial, significant, or
have a huge impact on society. A social impact
may analyse information regarding population
demographics, relationships, governance,
politics, culture, norms, beliefs, values,
health, education, history, and customs. Social
Impact may cover issues to do with environmental
and social justice, social responsibility,
resettlement policies, environmental/social
refugees, and to look at the intergenerational
effects of certain proposals and policies. - Stakeholder Analysis
- Freeman (1984) describes stakeholders as any
group or individual who can affect or is affected
by the organizations objectives. The
organization shows notions of caring for
stakeholders by asking them what they can do to
help to keep the organization from harming them,
so the organization can keep their contract or
proposed invested project (Burton and Dunn,
1996). Stakeholder Analysis essentially
identifies they stakeholders (who will affect the
organizations objectives) and what they want, For
some academics, the stakeholder theory is flawed
with differences of power between the dominating
party( ie. the government, agency, or government)
and the stakeholder ( eg. the people who will be
affected by the development). These differences
in power is to a point where decision making is
biased towards the dominating party, because they
construct the rules on how decisions are made and
who makes them. The dominating party will decide
who will be selected from a range of stakeholders
to attend a forum for discussions on the issues.
At the forum, communications will be carefully
managed to allow more time for the dominating
power to use a range of persuasion techniques to
influence the stakeholders. - Participatory Planning (see later)
28Cultural Decision Making Models
- Cultural standards and norms on what is
acceptable or unacceptable behavior or conduct. - Prioritization based on values and ethics
- Cultural Audits and Accounting
- Values Frameworks using objectives hierarchies
- Systems Dynamics- interelationships
- Contingent Valuation of Culture
- The value culture brings in to economy in
relation to tourism, product and service
knowledge, technology, communication - Value in Social Cohesion and costs in family
breakdown.
29DIRECTION AND FOCUS GROUPS
- Participartory Planning
- Participatory planning relates to planning that
involves the community in the planning process.
Resource management organizations have been using
this process to operate because few agencies
funded unless they contain substantial components
of community involvement in planning, design and
implementation. Participatory planning has been
used in health, nutrition, poverty and livelihood
development programs. Where these participatory
initiatives have worked it is because individual
communities and groups have shown the benefits of
working collaboratively, and developed a
collective vision and learning and adapting their
management practices together. The process uses
the concepts of "learning by doing" or "adaptive
management", and have been fairly widely accepted
in environmental management situations for nearly
20 years. - Focus groups
- Focus groups are a small reference group used to
identify view points, potential trends, and
gather information for research. - Focus groups are selected based on the population
to be studied and according to a scientifically
valid selection process. - Stakeholder analysis
- Stakeholder analysis was mentioned earlier. The
next page will outline how to undertake a
stakeholder analysis
30Stakeholder Analysis-A type of risk management
- Identify and define the characteristics of key
stakeholders. - Draw out the interests of stakeholders in
relation to the problems that the project is
seeking to address (at the identification stage)
or the purpose of the project (once it has
started) and determine what motivates them. - Identify conflicts of interests between
stakeholders, to help manage such relationships
during the course of the project - Help to identify relations between stakeholders
that may enable "coalitions" of project
sponsorship, ownership and cooperation - Assess the capacity of different stakeholders and
stakeholder groups to participate - Help to assess the appropriate type of
participation by different stakeholders, at
successive stages of the project cycle, e.g.
inform, consult, partnership -- all of these have
different possible models. - Table Matrix for Stakeholders Analysis
31VALUES FRAMEWORKS
- Ontology or world view
- Identifying values, values in culture
- Objectives hierarchy
- Objectives, criteria, attributes
- Prioritisation
- Encroachment of other peoples values
32Values in Decision Making
- Values and decision constantly go hand in hand.
Value judgements influence the outcome of a
decision or frame what constitutes desirable or
undesirable criteria (for example, a company may
value profit and structure all the day-to-day
decisions in order to reach a profit. Maori may
value cultural identity and make decisions that
will enhance cultural identity). Values form
ethics or a code of behaviour, which can frame
value frameworks (eg. laws, business ethics,
bible, CERES-Valdeze Principles etc.).
33VALUES FRAMEWORK
MAORI SUSTAINABLE DEVLEOPMENT Te Ao MaoriTe
AoturoaWairuatanga RangitiratangaTikanga
MaoriKotahitanga
ENVIRONMENTAL STABILITY
SOCIAL STABILITY
ECONOMIC STABILITY
CULTURE
Criteria
Criteria
Performance
Criteria
Performance
Criteria
Performance
Performance
34GOVERNANCE for Sustainable
- Identifying types of governance structures
- Maori TB, Incorporations, Land based Trusts,
Companies - Identifying institutional barriers
- Identifying values and direction
- Values framework for decision making
- Must pan over many governance structures and
assist with decision making
35GOVERNANCE for Sustainable Development
Pan Tribal Economy
Upoko Forum Leaders from each institution To
consult on issues that need addressing
Tribal Economy
MTB
Company
Land based Trust
Land based Trust
Sustainable Development Company/Trust or
Department Action Team-assisting in skills in
Sustainable technical knowledge to trusts, MTB,
companies, organisations- Can in fact be a
department within the Maori Trust Board or Runanga
36Typical Structure for a Sustainable Development
Company/Trust/Department
Sustainable Development Manager
Communications -Environmental Cultural
Education document design -Environmental and
Cultural Marketing -Quadruple bottom line
Reporting -External relations and Governance
Advising -Corporate Social Responsibility
Policy and Finance -Treaty Issues -Planning -Polic
y Analysis -Values integrity -Environmental,Cultur
al, Social, and Financial Accounting
People Department -Beneficiary Database, census,
and voting -Education and Te Reo
Development -Co-operative Education
/Apprenticeship/voluntary placements
advice -Social Need-housing, health, education,
and social services
Sustainable Business Development -Environmental
and cultural education to businesses and
trusts -Social Enterprise -Networking -Co
Management, cooperatives, and partnership
development
Sustainable Consumption -Resource monitoring for
iwi -Advice on environmental and cultural
procurement -Advice on tribal and environmental
marketing
37Organisational Learning for Sustainable
Development
- Make information readily available through email,
newsletters, notice boards etc - Encourage staff and beneficiary input on ways to
make the Trust Board and iwi more sustainable - Resource monitoring, learning, business
development, volunteering etc can be for both
young and old. - Reward good ideas and achievement with praise.
- Make learning fun for both staff and beneficiaries
38HISTORICAL GOVERNANCE IN MAORI INSTITUTIONS
- Traditional versus Modern
- Legislation history
- Capital flows in Maori institutions
- Leadership
39Legislative History
- The Treaty of Waitangi of 1840
- "Her Majesty the Queen of England confirms and
guarantees to the Chiefs and Tribes of New
Zealand to the respective families and
individuals thereof the full exclusive and
undisturbed possession of their Lands and Estates
Forests Fisheries and other properties which they
may collectively or individually possess so long
as it is their wish and desire to retain the same
in their possession "
40Legislative History
- New Zealand Settlement Act
- Suppression of Rebellion Act
- Native Land Act of 1865
- Maori Social and Economic Advancement Act of 1945
- Maori Trustee Act 1953
- Maori Affairs Act 1953
- Maori Trust Boards Act 1955
- Maori Community Development Act
- Runanga a Iwi Act 1990
- Te Ture Whenua Maori Act 1993
- Maori Purposes Bill 1999
- Te Ture Whenua Maori Amendment Bill 1999
- The Companies Act
- The Incorporated Societies Act
- The Charitable Trusts Act
- The Trust Act
41Issues surrounding governance in New Zealand
42(No Transcript)
43Capital Flows in Maori Institutions
- Government legislation has affected the flow of
capital (economic, social, environmental,
cultural) in Maori Institutions through either
one of these process - Double taxation resulting in loss of economic
wealth - Removal of powers affecting the the decision
making capacity over resources owned by iwi - Removal of iwi from their land through
privatisation, urbanisation, and perpetual leases
resulting in a major loss of economic, social,
environmental, and cultural capital - Read
- Iremonger, C. (2001) Governance and Management
of Maori Institutions.
44Leadership
- Leadership is required for implementing
- Sustainable development policies
- Encouraging staff and beneficiaries to partake in
their own sustainable development - Knowledge transfer to staff and beneficiaries on
particular skills such as - Census monitoring
- Resource inventory monitoring
- Business and market monitoring
- Sustainable development practice
45Iwi Leadership and Decision making
- Maori tend to make decisions based on a team or
group situations. - Decisions can also be made by kuia and kaumatua
head of a whanau group on smaller house keeping
issues. - Group decision-making can be influenced by group
dynamics, persuassion techniques, and group
voting rules. - IVM Model
- On the IVM model decision making can be made
democratically and allow for group decision
making, or through representatives of the
beneficiary (ie Trustees) who are statutory
responsible. - This can be done through pairwise questionaires
on the criterion questions or the model in order
for weightings to be calculated.
46What makes a good leader?
- Leaders are the charismatic, big-picture
visionaries, the ones who change the whole ant
farm - Communication is the real work of leadership
- Take complete responsibility if something goes
wrong. - Leaders are pragmatists who can deal with
difficult realities but still have the optimism
and courage to act. - Effective leaders help others to understand the
necessity of change and to accept a common vision
of the desired outcome. - Empowerment is also vital to managing the change
process - Leaders design good systems of reporting, hire
the right people, and put together the proper
multidisciplinary advisory groups. - Hoarding knowledge ultimately erodes your power.
- The people in power are the people who are
constantly able to discover new and relevant
knowledge, which is really tied to the capacity
to learn, - Importance of creativity in leadership
- The ability to recognize and make the most of new
opportunities is highly prized - Many people have the potential for leadership,
but they havent developed it. - Leaders are people who do the right thing
managers are people who do things right.
47Specific characteristics of leadership
- VISION - being able to articulate the future in
clear simple language - Next the leader should be able to FOCUS. There
are always distractions and personality conflicts
but leaders should be able to see beyond them to
what it will take to get the job done
effectively. - Leaders must be willing to take RISKS and learn
from their successes and failures. - You must be TRUSTWORTHY. No-one will follow with
enthusiasm a dishonest or unscrupulous leader.
Don't play favorites or act hypocritically your
staff will be the first to notice. - You must be able to EMPOWER others with the
ability to help themselves. Teach people how to
accomplish a task - don't do it for them (even if
you can do it faster or better, you don't have
the time to do everyone's job). Part of the
empowerment process in an organization is to
ensure that you listen to everyone's suggestions,
incorporate ideas as needed and give credit to
those who deserve recognition. Learning to give
positive feedback is crucial! - You must learn what MOTIVATES people and then act
accordingly. Praise (tell folks they've done a
job well - it is hard to overdo this one!),
appreciation (a simple "thank you" regularly will
earn you respect), recognition (awards, credit on
a report, a letter of commendation), or the truth
about problems (being clear about consequences)
are all motivators. - And finally, but certainly not last - it helps to
have a sense of HUMOR. The ability to laugh at
oneself is the easiest way to bring others along
with you. Humor is a great tension breaker and,
while inappropriate if used too often or to
belittle someone, humor shows that
48Succession Planning of Leaders
- Leaders lives are finite
- New leaders must be developed to succeed old
leaders in various fields of expertise - This is done through succession planning
- It is a good idea to train more new leaders than
what is required, as some may lose interest, or
endure mortality. - The numbers of leaders trained will depend on
current leadership life span, the number of
births in the last 5 year cohort, plus a
mortality rate for those who fall away from
training. - Mentoring is a good practice
49Socially Responsible Investment .Fiduciary
Issues for Maori Trustees
- Purpose and objects
- Duties of trustees
- Duties relating to investment
- Features of different types of trusts relevant to
investment powers - Cases relevant to SRI investment
- Other observations
- Practical guidance for trustees
50To what extent can trustees take SRI
considerations into account?
- Purpose and objects of the trust
- Trustee duties
- Investment duties
- Preserve capital
- Increase real value of trust fund
- Prudent person considerations
- Process is critical.
- Trustees must
- Comply with their duties
- Can only exercise their powers
- in accordance with the objects and purposes of
the trust.
51Maori Trust Board Act 1955
- 24. Functions of Board---
- (1) The functions of each Board shall be to
administer its assets in accordance with the
provisions of this Act for the general benefit of
its beneficiaries, and, for that purpose, a Board
may, in its discretion, provide money for the
benefit or advancement in life of any specific
beneficiary, or of any class or classes of
beneficiaries.
52Cont
- (2). Without limiting the general provisions
hereinbefore contained, it is hereby declared
that each Board may, from time to time, subject
to the provisions of this Act, apply money
towards all or any of the following purposes - (a) The promotion of health
- (b)The promotion of social and economic welfare
- (c) The promotion of education and vocational
training - (d) Such other or additional purposes as the
Board from time to time determines.
53Cont
- (3) Nothing in this section shall be deemed to
preclude any Board from applying money for the
general benefit of a group or class of persons,
notwithstanding that the group or class of
persons includes persons other than
beneficiaries but no grant or loan shall be made
to any individual for his exclusive benefit
unless he is a beneficiary.
54Additional grants and payments by Boards
- 24A. Additional grants and payments by
Boards---Any Board may from time to time, in its
discretion--- (a) Make grants to the Maori
Education Foundation established by the Maori
Education Foundation Act 1961 (b) Make payments,
not exceeding in the aggregate the sum of
400 in any financial year, for any purposes
not otherwise specifically authorised by this
Act,--- whether or not any such grants or
payments are of a direct or indirect benefit to
the beneficiaries of the Board, or any of them.
55Trusts for charitable purposes
- 24B. Trusts for charitable purposes---
- (1) Any Board may from time to time, in its
discretion, execute under its seal a declaration
of trust declaring that it shall stand possessed
of any of its property, whether real or personal,
upon trust for charitable purposes. - (2) Any income derived by the Board from any
property to which the declaration relates shall
be applied for such purposes referred to in
section 24 or section 24A of this Act as may be
specified in the declaration of trust and, for
the purposes of the Income Tax Act 1976, any
such income shall be deemed to be income derived
by trustees in trust for charitable purposes. - (3) No declaration of trust under this section
shall have any force or effect unless it has been
approved by the Commissioner of Inland Revenue.
56Loans by Board
- Loans by Board---In any case where a Board grants
a loan to any person, it shall take such security
and fix such terms and conditions in respect of
the loan, and for the repayment of the principal
sum and for the payment of interest thereon, as
the Board decides at the time of the granting of
the loan.
57Boards may make trustee investments
- 25A. Boards may make trustee investments---Any
Board may from time to time, in its discretion,
invest any of its funds not required for other
purposes in any securities in which trust funds
may be invested by trustees in accordance with
the Trustee Act 1956. This section was inserted
by s. 19 (2) of the Maori Purposes Act 1961.
58Power to acquire lands and to farm
- 26. Power to acquire lands and to farm---
- (1) Each Board, with the prior consent of the
Minister, may acquire any land or any interest in
land, whether by way of purchase, lease, or
otherwise, and, with the same prior consent, may
sell, lease, sublease, or otherwise dispose of
any such land or interest. - (2) Each Board may
- (a) Occupy and manage any land acquired under
this section for farming, reclamation, or other
purposes, or may permit any person to occupy any
such land, whether for the purpose of farming or
reclamation or for any other purpose - (b) Make any such land available for common use
by Maoris for any purpose, or use it for the
physical, social, moral, or pecuniary benefit of
Maoris or for any purpose having for its object
the benefit, betterment, or welfare of Maoris or
the promotion of any tribal or communal object. - (3) For the purpose of farming any land acquired
under this section, each Board may, from time to
time, purchase or otherwise acquire such stock,
implements, and chattels as it deems necessary
and may sell or otherwise dispose of all or any
stock, crops, produce, or chattels grown or held
in the course of farming and for the purpose of
any such farming business may, from time to time,
raise such money as it deems necessary on the
security of any of its stock, crops, produce, or
chattels.
59Cont.
- (4) A Board may appoint an agent to exercise on
its behalf the powers conferred on it by
paragraph (a) of subsection (2) of this section
to occupy and manage land for farming,
reclamation, or other purposes, and the Board may
authorise any such agent- - (a) To exercise such of the powers of the Board
as the Board may from time to time in writing
direct and - ( b) To receive, notwithstanding anything to the
contrary in this or any other Act, money
otherwise payable to the Board into an account
kept by the agent, and, without further
authority, to disburse any such money in the
course of and for the purposes of the operations
conducted by the agent. - (5) Without limiting the authority of a Board to
appoint an agent, it is hereby declared that the
Board may, with the consent of the Marginal Lands
Board established under the Marginal Lands Act
1950, appoint that Board as its agent, and the
Marginal Lands Board if so appointed--- - (a) May, in the performance of its functions as
agent of a Board, exercise the same powers of
delegation as are conferred on it by section 6 of
the Marginal Lands Act 1950 in respect of its
functions under that Act, and the provisions of
that section shall, with the necessary
modifications, apply accordingly - (b) May direct any officer or officers to whom it
has delegated any powers under paragraph (a)
hereof to establish a separate banking account at
any trading bank for the purposes of such
operations as are conducted by it as agent of a
Board. - Subss. (4) and (5) were added by s. 20 (1) of the
Maori Purposes Act 1961. An undivided freehold
interest in Maori freehold land may be
transferred to a Maori Trust Board by a vesting
order under s. 213 of the Maori Affairs Act 1953.
See s. 213 (1) (d) of that Act.
60Power to borrow money and guarantee loans
- 27. Power to borrow money and guarantee
loans---With the prior consent in writing of the
Minister and for any of the purposes of this Act,
each Board may, from time to time,--- (a) Borrow
money from any bank, person, or body corporate on
the security of a mortgage of or charge upon any
lands vested in the Board, or a charge upon any
money payable to the Board (b) Guarantee to Her
Majesty the Queen or to any other person or body
corporate the repayment of any principal sum or
interest thereon by any person.
61Accounts
- 28. Bank accounts---(1) Subject to any express
provisions in this or any other enactment, all
money belonging to each Board shall, within 14
days of receipt, be paid into an account at such
bank as may from time to time be approved by the
Minister, to be called The Name of Board
Maori Trust Board Account''. (2) No money shall
be withdrawn from a Maori Trust Board Account
except with the authority of the Board and by
cheque or other instrument signed by 2 members
or by one member and the Secretary Provided that
nothing in this section shall be construed to
limit the exercise by the Minister of the powers
conferred on him by section 29 of this Act as to
the appointment of countersigning officers.
62Minister may authorise countersigning officer
- 29. Minister may authorise countersigning
officer - (1) The Minister may at any time authorise in
respect of any Board, any person to countersign
cheques or other instruments drawn on the bank
account of the Board, and in any such case the
Minister shall give notice in writing of the
authorisation to the bank at which the account is
kept. - (2) Upon receipt by the bank concerned of a
notice under subsection (1) of this section of
the authorisation of any person in respect of a
Board, no money shall be paid out of the Board
account except by cheques or other instruments
countersigned by the person so authorised. - (3) Where it appears to the Minister that there
is some irregularity in the administration of the
affairs of a Board, he may direct any person
authorised in respect of the Board not to
countersign any cheque or other instrument or
class of cheques or other instruments until
further notice. - (4) Any such direction shall be binding on the
person to whom it is given until modified or
revoked by the Minister who shall revoke the
direction when the irregularity is remedied or
explained to his satisfaction.
63Books of account
- 30. Books of account---(1) Each Board shall cause
full and accurate accounts to be kept of all
money received and paid by it. (2) Any member or
any duly authorised officer of a Board, or any
person duly authorised in that behalf by the
Minister, or any beneficiary, may at all
reasonable times inspect the books of the Board
and take copies of or extracts from them free of
charge.
64Yearly statements of account and report
- 31. Yearly statements of account and report---
- (1) At the close of each financial year, each
Board shall cause to be prepared and sent to the
Audit Office a balance sheet showing the assets
and liabilities of the Board, an account of its
income and expenditure, and a statement of
receipts and payments, together with such other
statements of account as may be necessary to show
fully the financial position of the Board and its
financial operations during that year. - (2) The balance sheet, accounts, and statements
shall be audited by the Audit Office, which for
that purpose shall have and may exercise all such
powers as it has under the Public Finance Act
1977 in respect of public money and public
stores and the audit of local authorities'
accounts. - (3) The balance sheet, accounts, and statements,
when certified shall be transmitted by the Audit
Office to the Minister and the Minister shall
forward them, with such comments as he thinks
necessary, to the Board. - (4) The financial year of each Board shall end
on the 31st day of March in each year Provided
that the Minister may from time to time in
respect of any Board fix a financial year ending
on some other date. - http//rangi.knowledge-basket.co.nz/gpacts/reprint
/text/1955/an/037.html
65Te Ture Whenua Maori Act 1993 Maori Land Act
1993
- 223. General functions of responsible
trustees---Every person who is appointed as a
responsible trustee of a trust constituted under
this Part of this Act shall be responsible for---
- (a) Carrying out the terms of the trust
- (b) The proper administration and management of
the business of the trust - (c) The preservation of the assets of the trust
- (d) The collection and distribution of the income
of the trust.
66Maori Land Trusts
- 226. General powers of trustees
- (1) The Court may, in the trust order, confer on
the trustees such powers, whether absolute or
conditional, as the Court thinks appropriate
having regard to the nature and purposes of the
trust. - (2) Subject to any express limitations or
restrictions imposed by the Court in the trust
order, the trustees shall have all such powers
and authorities as may be necessary for the
effective management of the trust and the
achievement of its purposes.
67Maori Incorporations
- 268. Maori incorporations to have
constitution---(1) Every Maori incorporation
shall have a constitution governing its internal
management. (2) The constitution of every Maori
incorporation shall be that prescribed by
regulations made under this Act.
68Maori Incorporations
- 270. Manner in which powers are to be
exercised--- - (1) Except as provided in this Part of this Act
or in its constitution, a Maori incorporation
shall act by and through its committee of
management. - (2) The powers of the committee of management may
be exercised by a majority of the members for the
time being in office, but no decision of the
committee shall be effective unless at least 3
members concur in it. - (3) The common seal of the incorporation may be
affixed to any instrument in the presence of any
2 members of the committee of management. - (4) The 2 members of the committee of management
shall sign the instrument to which the seal is
affixed. - (5) The provisions of section 42 of the Companies
Act 1955 as to the form of contracts shall apply
to a Maori incorporation as if the incorporation
were a limited liability company duly
incorporated under the provisions of that Act. - (6) The committee of management of a Maori
incorporation shall comply with the terms and
conditions of any resolution relating to the
powers and functions of the incorporation passed
at a general meeting of the shareholders of the
incorporation. - (7) No loan shall be granted by a Maori
incorporation to any person who is a member of
its committee of management.
69Maori Incorporations
- 276. Accounts and balance sheet---
- (1) Every Maori incorporation shall cause to be
kept proper books of account in which shall be
kept full, true, and complete accounts of the
affairs and transactions of the incorporaton. - (2) The committee of management of every Maori
incorporation shall, within 18 months after the
making of the order of incorporation, and
subsequently at least once in every calendar
year, submit to a general meeting of shareholders
a profit and loss account made up to a date not
earlier than 6 months before the meeting,
together with a balance sheet as at the date to
which the profit and loss account is made up. - (3) Every balance sheet of a Maori incorporation
shall, when read in conjunction with the
statement required by paragraph (c) of subsection
(4) of this section, give a true and fair view of
the state of affairs of the incorporation as at
the end of its financial year, and every profit
and loss account of an incorporation shall give a
true and fair view of the profit or loss of the
incorporation for the financial year.
70Maori Incorporations
- (4) The profit and loss account shall be annexed
to the balance sheet, and there shall also be
annexed or attached to the balance sheet--- (a)
The auditor's report made pursuant to section 277
of this Act and (b) A report by the committee of
management with respect to the state of the
incorporation's affairs and the amount, if any,
that it has determined is available for the
purposes of section 259 (1) (c) of this Act and
(c) With respect to the assets of the
incorporation, a statement setting forth the
estimated current market value of the assets,
together with a statement of the liabilities, if
any, of the body corporate charged on or relating
particularly to those assets. - (5) Notwithstanding subsection (4) (c) of this
section, where the balance sheet is prepared on a