This paper addresses the now entrenched historiography of the Australian Settlement and New Zealand variations thereof. Against the central premise of this historiography, that a particular regime of domestic insulation and external orientation to the British market constrained development and persisted unchanged until the neo-liberal restructuring of the 1980s, it is argued here that the political economy of the beginning of the 20th century was profoundly destabilized by the Depression. As a result, a new, Keynesian regime was established in New (...) Zealand from the late 1930s and in Australia a few years later. The entrenchment of this regime depended upon adoption by remade conservative parties by the end of the 1940s. (shrink)