Category: future

  • Australia in the Asian Century – Chapter 9: Deeper and broader relationships

    Australia in the Asian Century – Chapter 9: Deeper and broader relationships

    This post is one of the series of articles on the Australia in the Asian Century report.

    Australia in the Asian Century’s final chapter looks at how Australia can deepen relationships with its Asian neighbours. The chapter is full of fine ideas which don’t quite match the reality of government policies and spending.

    Early in the chapter the white paper proposes increasing the number of Australian diplomats in Asia along with opening a new embassy in Ulan Baator, a Jakarta based ambassador to ASEAN and consulates in Shenyang , Phuket and eastern Indonesia.

    Fine words, however Australia’s diplomatic corps has been shrinking for the last twenty years so staffing these facilities will require a withdrawal from other regions. The white paper doesn’t identify which countries Australia’s representation would be cut from and the consequences of that.

    More importantly, it doesn’t identify how Foreign Affairs and Trade staff will be skilled up to man these facilities, instead we get another worthy ambition.

    National objective 22. Australia will have the necessary capabilities to promote Australian interests and maintain Australia’s influence.

    • Australia’s diplomatic network will have a larger footprint across Asia.

    Again, one would surely expect that Australia would already have the necessary capabilities to promote its national interest and maintain influence. Is the white paper suggesting we don’t?

    Which leads us to the next national objective;

    National objective 23. Australia will have stronger and more comprehensive relationships with countries across the region, especially with key regional nations—China, India, Indonesia, Japan and South Korea.

    If we accept the assumption which underlies the entire paper, that Asia is going to continue to grow both economically and in influence then this will happen regardless of what governments do. It’s a meaningless and silly statement which once again ignores most of Asia and simplifies the dynamics.

    The Australia Network

    One of the great wastes of the Howard years was the dismembering of Radio Australia which was a cheap and effective way of projecting ‘soft power’ across the region. I personally came across this as a backpacker in China where many manual workers in the hard seat carriages practiced their Australian accented English that they’d learned on Radio Australia’s programs.

    This was shut down by one of the spiteful, stupid and poorly thought out decisions that were the hallmark of the Howard government.

    Replacing this was a new Australia network that replaced the previous awful overseas television service which had been a niche product on Asian cable TV channels – I had it on my Thai cable subscription when I lived in Bangkok. It was rarely watched.

    The Australia Network hasn’t been a great success and that is largely due to the funding – the 2011-21 contract was costed at $221 million in the budget papers.

    A break out box in the white paper boasts about the Australia Channel and its “mandate to encourage awareness of Australia, promote cross-cultural communication and build regional partnerships.”

    Listed is the funding for some other services – Al Jazeera, $359 million in 2009; CCTV, $280 million in 2009 and NHK World/Radio, $226 million in 2008.

    With the Australia Network receiving less than a tenth of this funding, it’s no surprise the station looks amateurish and irrelevant. Once again we see the difference between government words and government deeds.

    Which brings us to the final two national objectives;

    National objective 24. Australia will have deeper and broader people to people links with Asian nations, across the entire community.

    National objective 25. Australia will have stronger, deeper and broader cultural links with Asian nations.

    Again these are more motherhood statements and barely worth considering. The section itself skates over some of Australia’s most important assets – the cultural diversity and immigrant communities.

    That the final chapter spends just a few pages on this aspect probably sums up the entire project – simple, full of motherhood statements and missing the critical strengths and threats to Australia’s, and Asia’s growth.

    Overall the paper is a disappointment that tells us little we didn’t already know while stating some big ambitions which successive governments have shown they aren’t capable of delivering.

    The message for those building Australia’s 21st Century links with Asia is not to wait for government but to get on and do it.

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  • Australia in the Asian Century – Chapter 8: Building sustainable security in the region

    Australia in the Asian Century – Chapter 8: Building sustainable security in the region

    This post is one of the series of articles on the Australia in the Asian Century report.

    The eighth chapter of Australia in the Asian Century looks at the security picture of the region, this is one of the bigger chapters and like some of the others it’s as notable for what it leaves out as for what it says.

    National objective 20. Australian policies will contribute to Asia’s development as a region of sustainable security in which habits of cooperation are the norm.

    That’s nice, worthy and has been undoubtedly true for most previous Australian governments. Except of course when Australian Prime Ministers join the prevailing colonial power in wars like Iraq, Afghanistan, Malaya, Korea, Vietnam or kicking around the German territories in World War I.

    Chapter Eight partly dives into territory already covered in Chapter Three, this time though the analysis does discuss the United States’ role in more detail and makes the observation that US military spending dwarfs that of any other Asian nation – interestingly this is one of the few times Russia gets a mention in the entire report.

    Encouragingly, the paper doesn’t confine the concept of ‘security’ just to military matters and takes a broader view of issues such as guaranteeing access to resources, food and water. There is some discussion of climate change and on regional responses to natural disasters such as tsunamis and earthquakes.

    One notable omission is that of refugees. Given that most of the asylum seekers arriving by boat are Asian – currently coming from Afghanistan and Sri Lanka – and almost all pass through other Asian countries, it would be expected this issue would get some exploration. Sadly it doesn’t and once again skirting over an important issue detracts from the paper’s substance.

    As befits Australia’s most important relationships in Asia, there is a lot of discussion of the three way relationship between China, the United States and Australia with a detailed breakout box in section 8.4.

    The discussion on Australia’s relations between China and the US makes an interesting statement;

    In managing the intersections of Australia’s ties with the United States and China, we will need a clear sense of our national interests, a strong voice in both relationships and effective diplomacy.

    Undoubtedly this statement is true, however successive Australian governments have conflated the interests of the United States with being the same as Australia’s. In recent times Australian leaders have followed the US lead even when it has been clear American policy conflicts with Australia’s Chinese relations.

    Moving away from a reflex support of the United States is going to be one of the biggest challenges for Australian governments in the Asian Century and one hopes the process is as gradual and incident free as the white paper hopes.

    National objective 21.The region will be more sustainable and human security will be strengthened with the development of resilient markets for basic needs such as energy, food and water.

    National objective 21 is an interesting statement in itself – “resilient markets for basic needs such as energy, food and water” smacks of the 1980s privatisation and corporatism that has left Australia with duopoly industries and an excessive financialisation of those markets for basic needs.

    It may well turn out to be the case that Asian countries choose not to follow that path, particularly those like the Philippines and Indonesia who have experienced the effects of crony capitalism in recent history.

    Chapter 8 of Australia in the Asian Century finishes with a detailed look at the regional efforts aimed at building trust and co-operation on trans-national issues.  Much is made of various international groups such as the G20 and the UN.

    An interesting case study is that of the Nuclear Non Proliferation Treaty with an examination of Japan’s and Australia’s work in that field. Sadly this is another area that’s let down by the actions of current and previous Australian governments in selling uranium to India.

    The nuclear weapons stand off between India, Pakistan and China is another ‘elephant in the room’ issue that doesn’t really get the coverage it should in such a report.

    Chapter 8 of Australia in the Asian Century is a very optimistic section of the report however it does hint at the path Australia could follow to being a credible, medium sized economy and influencer in the region. However one has to consider the actions of Australian leaders when asking if the nation is really interested in taking that path.

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  • Australia in the Asian Century – Building the agriculture industry

    Australia in the Asian Century – Building the agriculture industry

    Before going into Chapter 8, the Australia in the Asian Century report has a detailed look at the agriculture industry. Which kicks off with National Objective number 19;

    National objective 19. Australia’s agriculture and food production system will be globally competitive, with productive and sustainable agriculture and food businesses.

    While this objective seems to have already been achieved, the bulk of the chapter does a good job of identifying the opportunity and challenges for the industry.

    The examination of trade treaties, biosecurity and food security is a good overview of the industry however it does suffer from a rose coloured view of prospects and government programs.

    Issues such as protectionism, genetically modified foods and the running sore of live cattle exports don’t get a mention.

    Another aspect of this section is how the aspirations don’t match the actions of governments, for instance the industry capture of regulators – the case of defining free range eggs being a good example – is a real barrier to Australia selling quality produce internationally.

    While the section does discuss ‘value adding’, the tenor of the section seems to be focused on bulk exports and really doesn’t identify industries such organics and free range which are an opportunity for the agricultural industry.

    Overall though, this section at least does give a reasonably detailed snapshot of an industry and its a shame the paper doesn’t attempt to profile other sectors in the Australian economy.

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  • Australia in the Asian Century – Chapter Seven: Connecting to Asian Markets

    Australia in the Asian Century – Chapter Seven: Connecting to Asian Markets

    This post is one of the series of articles on the Australia in the Asian Century report.

    The seventh chapter of Australia in the Asian Century looks at how the country’s businesses and governments can engage with markets in Asia. In some ways this is the most effective chapter of the report.

    At the beginning of the chapter introduction points out that Asia offers bigger markets than Australia and says “Australian businesses need to build on their existing advantages by developing new capabilities and approaches as they become fully part of the region.”

    This is true, but the Chapter never really identifies what Australia business’ existing advantages really are and again this is a weakness in the report.

    National objective 17. Australia’s businesses will be recognised globally for their excellence and ability to operate successfully in Asian markets.

    How this comes about is difficult to say, and what governments can actually do to help businesses be recognised globally isn’t really identified.

    The CPA case study is notable for illustrating the number of Australian expats working in Asia. In many ways these people are the wasted talents that should have been cultivated by domestic businesses through the 1990s and 2000s.

    Saying that businesses need to be part of the global supply chain is a statement of the obvious and Chapter 7.3 does discuss the importance of efficient ports, fast customs procedures and reduced barriers to trade. This ties into National Objective 18a.

    National objective 18a.The Australian economy will be more open and integrated with Asia, through efforts to improve our domestic arrangements. The flow of goods, services, capital, ideas and people will be easier.

    • Australia’s trade links with Asia will be at least one-third of GDP by 2025, up from one-quarter in 2011.

    It’s difficult to argue with this objective, although one wonders what Canberra has been doing for the last twenty years on smoothing the flow of goods, services, capital and ideas. Hopefully this is one of the relatively easy areas where a Gillard, or Abbott, government can deliver.

    National objective 18b. The Australian economy will be more open and integrated with Asia, through comprehensive regional agreements, better aligned economic regulations, greater infrastructure connectivity and enhanced understanding of each country’s arrangements. The flow of goods, services, capital, ideas and people will be easier and Australian businesses and investors will have greater access to opportunities in Asia.

    This objective focuses around formal trade links and really only describes the current policy – continued from the Howard government – of signing bilateral trade agreements rather than waiting for the cumbersome and possibly never ending global negotiations to actually deliver something.

    Most of Chapter Seven is focused on describing the various trade initiatives the Australian government is engaged in through APEC, ASEAN and various other forums.

    All of these are good initiatives and these are the brightest spot in the entire report, this is where the Australian political system has delivered bipartisan support for a long term plan and it’s a shame we can’t see more actions similar to this in areas like education, taxes and sustainability.

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  • Australia in the Asian Century – Chapter Six: Building capabilities

    Australia in the Asian Century – Chapter Six: Building capabilities

    This post is one of the series of articles on the Australia in the Asian Century report.

    Of all the chapters in the Australia in Asian Century discussion paper, Chapter Six has probably attracted the most opprobrium because of the fine words which haven’t been matched by government policy and action.

    Parts of this chapter have a strong “school marm” tone as it tries to mandate the composition of company boards or the locations of where students will study. Overall though, most of the objectives are either motherhood statements, impractical or at odds with the actions of both state and Federal governments.

    National objective 9. To build the capabilities of Australian students, Australia’s school system will be in the top five schooling systems in the world, delivering excellent outcomes for all students of all backgrounds, and systematically improving performance over time.

    • By 2025, Australia will be ranked as a top five country in the world for the performance of our students in reading, science and mathematics literacy and for providing our children with a high?quality and high?equity education system.
    • By 2015, 90 per cent of young Australians aged 20 to 24 years will have a Year 12 or equivalent qualification, up from 86 per cent in 2010.
    While these objectives are worthy, there’s little discussion of exactly how this will be achieved beyond broad statements. Again it’s notable that these aspirations are being laid out at a time when funding is being cut and staff retrenched in both state and Federal government education departments.

    National objective 10. Every Australian student will have significant exposure to studies of Asia across the curriculum to increase their cultural knowledge and skills and enable them to be active in the region. All schools will engage with at least one school in Asia to support the teaching of a priority Asian language, including through increased use of the National Broadband Network.

    Says who? Who exactly is going to force a school to engage with at least one school in Asia? These are the sort of broad brush statements that detract from the report.

    These kind of statements are the “thought bubble” approach to policy that marks much of what passes for governance in Australia today and such poorly thought out programs end up at best wasting money. At worst, the unintended consequences of a ‘policy’ thought up on the back of beer mat end up causing more damage than good.

    Such a program could work well if properly thought out and integrated properly into the long term curriculum of the students but it would take proper leadership from state and Federal education ministers.

    National objective 12. All students will have access to at least one priority Asian language; these will be Chinese (Mandarin), Hindi, Indonesian and Japanese.

    This is good and fair, but is something that was supposed to have been put in place thirty years ago. Instead the proportions of students studying Asian languages has steadily dropped.

    As newspapers have reported there are barely a dozen Hindi language teachers in New South Wales, so the priority needs to be training teachers to deliver the courses.

    Such inconvenient logistical problems are an excellent example of those well meaning but poorly thought through “thought bubbles.”

    National objective 12. Australia will remain among the world’s best for research and teaching in universities, delivering excellent outcomes for a larger number of Australian students, attracting the best academics and students from around the world and strengthening links between Australia and the region.

    • By 2020, 20 per cent of undergraduate higher education enrolments will be people from low socioeconomic backgrounds, up from 17 per cent in 2011.
    • By 2025, 40 per cent of all 25 to 34?year?olds will hold a qualification at bachelor level or above, up from 35 per cent in 2011.
    • By 2025, 10 of Australia’s universities will be in the world’s top 100.
    • A larger number of Australian university students will be studying overseas and a greater proportion will be undertaking part of their degree in Asia.
    This objective really smacks of poorly thought out ideas on the run and illustrates starkly the differences between the well meaning objectives and the behaviour of governments.
    It’s almost impossible for ten of Australia’s universities to make it into the more reputable measure of top 100 universities when for the last three decades research and post graduate programs have been slowly strangled by falling government funding.
    Even if a Gillard government were to change that trend, it’s unlikely Australian universities could make up the lost ground in 13 years.
    Mandating that “a larger number of Australian university students will be studying overseas and a greater proportion will be undertaking part of their degree in Asia” is nice but who is going to force students to study overseas and specifically in Asia?
    More to the point, what are notoriously conservative Australian employers going to do with all these graduates of Asian universities?

    National objective 13. Australia will have vocational education and training systems that are among the world’s best, building capability in the region and supporting a highly skilled Australian workforce able to continuously develop its capabilities.

    • By 2020, more than three?quarters of working?age Australians will have an entry?level qualification (at Certificate III level or higher), up from just under half in 2009.
    • Australia’s vocational education and training institutions will have substantially expanded services in more nations in the region, building the productive capacity of the workforce of these nations and supporting Australian businesses and workers to have a greater presence in Asian markets.
    Given the week before the Gillard government cut apprenticeship funding and the NSW government announced it was further emasculating its state TAFE system a few days after the report was released, this objective can be treated purely empty words.

    Business capacity

    One of the reasons why Australia engaged so little with Asia over the last twenty five years is because the business community became focused inwards rather looking for opportunities in foreign markets. So the idea of getting more Asian experience into boardrooms is laudable but the solutions proposed impractical.

    National objective 14. Decision makers in Australian businesses, parliaments, national institutions (including the Australian Public Service and national cultural institutions) and advisory forums across the community will have deeper knowledge and expertise of countries in our region and have a greater capacity to integrate domestic and international issues.

    • One?third of board members of Australia’s top 200 publicly listed companies and Commonwealth bodies (including companies, authorities, agencies and commissions) will have deep experience in and knowledge of Asia.
    • One?third of the senior leadership of the Australian Public Service (APS 200) will have deep experience in and knowledge of Asia.
    This objective has drawn a lot of scorn from the business community and for good reason – how is a Federal government going to mandate that a third of the ASX200 will have “deep experience and knowledge of Asia”?
    While the aim of having a third of the senior public service possessing Asian experience is worthy, this is almost impossible given the deadline for this is thirteen years away, any bureaucrat hoping to have “deep experience and knowledge of Asia” would have had to have been working on it for the last five or ten years. If this program isn’t in place now, it isn’t going to happen.

    Society

    Probably the biggest strength of Australia as a nation is in its diverse and relatively tolerant society so this section of the report is notable for what it misses in opportunities.

    National objective 15. Australian communities and regions will benefit from structural changes in the economy and seize the new opportunities emerging in the Asian century.

    Another worthy aim and its notable that the region cited in the case study is Darwin, a city whose economy is being wildly distorted by the LNG boom which is driving up prices and labour costs. If anything Darwin is an example of Australia turning its back on opportunities and focusing on a quick, resources driven buck.

    National objective 16. By preserving and building on our social foundations, Australia will be a higher skill, higher wage economy with a fair, multicultural and cohesive society and a growing population, and all Australians will be able to benefit from, and participate in, Australia’s growing prosperity and engagement in Asia.

    Cant and motherhood statements as one would hope all government seek to build a fair and cohesive society on our social foundations. It’s interesting that much of the poorly thought out, short term tactics by publicity hungry politicians probably does more to damage Australia’s institutions than other factors.

    Overall this chapter deserves to have drawn the most criticism with its motherhood statements and wholly unachievable aims.

    Most disappointingly, it skates over Australia’s diverse workforce and provides no ideas on how to harness the talents of the country’s ethnic groups in building ties and improving the nation’s skills.

    Image of the Harbin Snow and Ice Festival from EmmaJG on Flickr

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