The Economic Landscape of Australia Essay

Australia was federated in 1901 and named the Commonwealth of Australia. Since so it has become a extremely competitory economic system, taking advantage of the natural resources it was endowed with. It besides had assorted reforms that happened in the 1980 ‘s that helped in the rapid growing seen until the 1990 ‘s. The restructuring of the authorities and the determination to let free trade made this state one of the fastest turning economic systems in the OECD during the 1990’s.


SPG Perspective

Australia has a parliamentary construction which follows the Westminster system. “ The chief characteristics of the Westminster system are that the bulk in the lower house of parliament signifiers the authorities and appoints the premier curate, who selects a cabinet accountable to the lower house. ” ( library of cong ) Since the Lower house of parliament appoints the premier curate, the lower house is compelled to name person that will maintain them in the lower house.

So in bend they are considered to follow the forms of the SPG position. Unlike the NIE and Outlier positions, in the SPG perspective the victors and also-rans are determined by their political and societal standings and non by who makes the right determinations. For illustration, if there were 15 people in the lower house and two people who were running to be the premier curate. One in which wants to alter the lower house, and the other who wants to go forth the house as is. The 2nd one will win so that the lower house remains the same and no major alterations get made.


“ Australia ‘s authorities adheres to federalism, whereby power is divided between the national authorities ( besides known as the commonwealth ) and the provinces. ” ( library of cong.

) Since the power is divided by the authorities and provinces, this makes Australia adhere forms of the sceptics. Even though both the authorities and province clasp power, if they disagree in a affair thecommonwealth is the 1 who finally decides. Giving the authorities more power than thatof the provinces.

Competitive Advantage and Global Cities

The major metropoliss are the “ Capital — Canberra ( dad. 351,000 ) .

A Other metropoliss — Sydney ( 4.5 million ) , Melbourne ( 3.9 million ) , Brisbane ( 2 million ) , Perth ( 1.6 million ) , Adelaide ( 1.2 million ) , Darwin ( 124,000 ) , Hobart ( 212,000 ) . ” ( US depart. of State ) Compared to the planetary norm of population in a metropolis Australia is draging behind ; presently at 22 million. It is below the planetary norm in population.

This has besides helped in the competitory advantage since its cardinal exports are the natural resources which they have in copiousness ; and they import finished goods.The natural resources that it exports are Fe, coal, gold, meat, wheat, and wool. But it has non ever been and export oriented state. Not until the “ 1980 ‘s, Australia has undertaken important structural reform of its economic system and has transformed itself from an inward-looking, extremely protected, and regulated market place to an unfastened, internationally competitory, export-oriented economic system.

” ( US depart. of State ) During the said reforms it reduced revenue enhancements, duties and other barriers that went against free trade. It besides allowed entree to foreign Bankss. Since so it has been able to vie more expeditiously in the planetary market. Leting it to come in into free trade understandings with the United States, China, Japan, Malaysia and South Korea.

Market Oriented Capitalism

Exports are non the lone factor that plays a function in the competitory advantage of a state. Productivity besides plays a critical function. Harmonizing to Professor Michael E.

Porter from Harvard Business School, from 1990 to 2002 “ Productivity has increased quickly, particularly entire factor productiveness. “ ( 19 ) It was able to quickly increase because Australia ‘s province and corporation relationships can be described by the market oriented capitalist economy. In which the authorities plays small function in the production and distribution of resources. Primarily it follows the laissez faire, where there is small authorities intercession, which allows the economic system to turn and go more efficient.

Mercantilism or Liberalism?

Even though it does follow the SPG position and the skeptic forms it has done good to construct its economic system. It is on the 3rd phase of development which is known as the invention phase. It is alongside the United States, Japan, Canada and others. It has achieved such success following the Mercantilism doctrine for their foreign patterns. Bing a state that follows such positions, the authorities is the chief histrion. To vie really good in the planetary economic system this state is really rigorous on the mode in which aliens come into the state. The lone manner they allow people in, is if they can lend to the overall economic wellness. So in bend, it does non let any refugees into the state since they are non able to lend to its economic system.

“ For illustration, in the autumn of 2001 Australia refused entry to 450 Afghani refugees who were stranded in the Indian Ocean. Alternatively, they were sent to detention cantonments or deported. ” ( library of cong. ) It has had some human rights motion in the past which makes the local doctrine follow theLiberalism.

Age of Non Polarity

“ THE PRINCIPAL feature of twenty-first-century international dealingss is turning out to be nonpolarity: a universe dominated non by one or two or even several provinces but instead by tonss of histrions possessing and exerting assorted sorts of power. ” ( Haas 1 )Since the new universe where nonpolarity exists, Australia has made an attempt in going a member in assorted international organisations.

It has memberships in organisations like the commonwealth, IMF, World Bank, etc. that adjutant in the economic and trade stand point; the International Criminal Court, International Criminal Police, etc to aide in the security; the Umbrella Group, Whale Protection Group to aide in the Environment. Those organisations, amongst others, depict the new non polar universe.

All the organisations have power in the planetary economic system and it is non merely the United States and the Soviet Union that have all the power, like it was during the Cold War thru the autumnof the Soviet Union.

Geopoliticss of Energy and Scarce Resources

The geopolitics of energy respects to the research for happening other signifiers of energy, clean energy and renewable energy. Coal is one of the other signifiers of energy and Australia is a major exporter of it.

With the increasing demand for coal rises, the Australian economic system will lift. Other signifiers of clean energy that Australia has and exports are “ solar energy, geothermic energy and beckon power.A Australia is besides renowned as a high quality provider of solar H2O heating systems and distant country power and intercrossed systems. “ A ( Australian Govt. ) Equally far as scarce resources are concerned, Australia is one of the states in which its little population and big has helped in the preservation of natural resource.The natural resources found there are still in copiousness and can keep the life styles in which the westerners used to. Even though they are non negatively affected by the energy crisis and or non in demand of many scarce resources, clime alteration still presents issues for this “ Lucky State ” ( Webb ) There is one resource that it is running out of ; that would be H2O.

Over 50 per centum of their H2O has been drained into other utilizations. For illustration agribusiness in the yesteryear. This caused the dirt to be overgrazed and caused dirt eroding. As a consequence it is now the 2nd driest contingent, Antarctica is the driest.

Outsourcing/Financial Recovery

Australia is non a state in which get involved in outsourcing much. Since it largely exports natural stuffs there is no demand to outsource.

They are more actively involved in acquiring other states to come and outsource at that place. For illustration, there is a company named Minol, which is portion of the service sector, which offers corporations to outsource their charge and client service. If they continue to keep a high degree of professionalism and client satisfaction, they could be become a state in which is foremost to come to mind when big corporations look to outsource. This is what India is making and has made it an first-class topographic point to outsource.

economic systemwill neglect.


Australia follows believes set Forth by the sceptics, SPG position, and Mercantilism and has been able to go a productive state. Equally good as being blessed with a mass of natural resources, this state took the chance to go a planetary rival. Becoming an exporter of many natural resources that have been decreasing thru out the universe. Its determination to go a market orientated state and let free trade boosted it economic system and allowed it to export the natural resources more expeditiously and fruitfully.

Having entree to the resources it has developed assorted signifiers of clean energy. This clean energy will let it to go on to vie in the planetary economic system. The one resource in which it has consumed by 50 per centum and is now fighting to keep is H2O.Even though it does n’t take part in outsourcing it does accept the occupations that are being outsourced.

Recently in sourcing has been coming into drama since it has become cheaper to make the occupation in house. Which were being brought back to hike client satisfaction. If these tendencies continue, the Australian economic system will be affected but every bit long as there are companies willing to put in the economic system, there is no concern that Australia ‘s economic system will neglect any clip shortly.