Economics is not about money - it's about connections, Business and Economic Research Ltd chief economist Dr Ganesh Nana told attendees at the annual City Partners breakfast today.

'It's not about dollars and cents, it's not about money, it's about connections,” says Ganesh.

Tauranga City Mayor Stuart Crosby and BERL chief economist Dr Ganesh Nana.

Ganesh Nana's keynote presentation at ASB Baypark began by explaining the rules and in a broad brush style moved though how economies work, how cities relate to economies and how taking the longer term view is essential.

'If you have a short term time horizon you won't be interested in people - that's a long term investment,” says Ganesh.

For 48 of the last 50 years, the New Zealand economy has spent more than it earns. If the country spends less, it hurts income and internal investment, says Gana.

Since 1978 the government has been aware that the country's economy depends on exports, but only recently has it set a target of exports making 40 per cent of Gross Domestic Product by 2025.

At a regional and territorial authority level, figuring out how to poach the neighbour's golf tournament is not going to help NZ Inc or the connections with the neighbours.

Ganesh is planning to take part in the Lake Taupo Challenge this Saturday - the 160km cycle around the lake that now attracts 10,000 riders from 20 countries. Those people have to come from somewhere, stay somewhere and arranging for some of them to visit the Bay of Plenty on the way to or from such an event is a result of connections the market will not do by itself, says Ganesh.

Strong connections are also required across New Zealand's various export sectors, says Ganesh.

'We have to make sure we don't argue whose job it is,” says Ganesh.

'NZ Inc is far too small and it's a too large and a nasty cruel world out there for people to argue amongst themselves.”

Ganesh was introduced to the 80 or so guests including regional, district, and local body politicians and senior staff, and representatives of the city business community by Mayor Stuart Crosby.

His ‘State of the City address' places Tauranga ahead of the game thanks in part to its growth management strategy Smart Growth and its connectedness with the upper North Island alliance and the neighbours, the district and regional councils.

He told the partners how the changing world has seen the new council introduce a new committee structure to apply a greater focus on the community and the city economy.

The city is in a strong position to move forward, says Stuart.