The Economics of multiculturalism: benefits, barriers & Business Bruce Marshall, ACEcD Chair, Victorian State Practitioners Network Economic Development Australia Place Manager, Melton City Council

Economic Development Australia (EDA) National professional body for Economic Development Practitioners Over 330 Members Nationally www.edaustralia.com.au

What is Economic Development? What is Multiculturalism? What are the Economic Benefits of Multiculturalism? What are some of the barriers to fulfilling full economic benefits of Multiculturalism? What are some ways to overcome those barriers?

1. What is economic development? Economic development is the process and policies by which a nation improves the economic, political, and social well-being of its people. Source: Wikipedia

National level

National level Trade Agreements Export Programs Direct Foreign Investment Large Scale Industry Support programs Nationwide Tourism Campaigns & Initiatives Business Support Grant Programs Strategic migration programs

State level

State level State Based Export Programs Business Attraction & Settlement programs Industry specific support programs Small business mentoring programs Business training programs Business leadership programs State Wide Tourism Programs Business Award Programs Skilled Migration Programs

local level

local level 1 Supporting the Existing Business Base 2 Attracting new businesses and jobs 3 Promoting liveable and sustainable communities

local level 1 Supporting the Existing Business Base  Training and education programs;  Skilled migration services;  Business incubators;  Networking programs;  Business expansion and retention programs;  Marketing;  Place making;  Promoting local content in procurement; and  Visitor information services;  Resident attraction;  Advocacy for and investment in infrastructure.  Business mentoring;  Local procurement activity;  Planning assistance;

local level 2 Attracting new businesses and jobs  Marketing investment/ business opportunities (prospectuses);  Investment facilitation;  Planning assistance;  Product development plans;  Rezoning of land;  Incubators/ business hubs;  Business start-up support; and  Resident attraction programs.

local level 3 Promoting liveable and sustainable communities  Training programs for residents;  Upskilling of residents;  Investment in community infrastructure;  Investment in services infrastructure;  Resident attraction;  Attracting and growing educational institutions;  Community service programs;  Lobbying and applying for grants infrastructure funding; and  Community plans

Which activity for which area? Limited Resources = can’t do everything Choose program/activity likely to have the biggest impact Engagement Facilitate meaningful relationships with Stakeholders

Working with eco dev practitioners Jobs Positive Economic Activity

2. What is multiculturalism? Multiculturalism describes the existence, acceptance, and/or promotion of multiple cultural traditions within a single jurisdiction, usually considered in terms of the culture associated with an aboriginal ethnic group and foreigner ethnic groups.  Source: Wikipedia

Australia’s journey towards a multicultural society Arrival of the English – British Oriented Nationalism Gold Rush Era – uncontrolled migration, racial tension and discrimination Immigration Restriction Act 1901 – birth of “White Australia Policy” Post WWII – “Populate or Perish” Nationality and Citizenship Act 1948 – Australian Citizenship was established 1970’s –first ‘unofficial’ multicultural policy, subsequent governments have tweaked it to the point we are now. Last decade – Successive leaders have proclaimed the success of Multicultural Australia.

3. What are the economic benefits of multiculturalism? Inquiry into Migration and Multiculturalism in Australia Joint Standing Committee on Migration 2011 The Economic Benefits of Multiculturalism = ?

Skilled migration The Skilled Migration intake has triple in the last 15 years 2014-15 127 774 skilled migrants 2000 – 01 44 730 skilled migrants *Note: Since 2011-12 the number has plateaued out

Skilled migration Pre-arranged jobs Filling skills shortages that would otherwise prevent a business from growing Families of skilled migrants are adding to the population The migration programs can be targeted to regions. Targeted programs can help improve liveability of a location.

$17.5billion Student migration Higher Education Sector is one of Australia’s fastest growing export markets. 2015 Economic Impact of International Students on the Australian Economy was estimated at….. $17.5billion In Victoria alone in 2013-14 International Education (Onshore) generated $4.3billion

Student migration International Students are legally able to work 20 hours per week. Adds to labour market supply and provides favourable conditions for businesses. In the Long Term – Students may choose to live in Australia = additional skills base.

Student migration Studies show that 1 in 2 students will be host visits from friends and family to Australia during their stay. Estimates for this sector in 2007-08 ranged from $120 - $300 million impact. A successful multicultural community makes it more inviting for international students. Happy students = more recommendations to friends & family.

Refugee & humanitarian settlers Economic contribution is realised over the long term. Short term costs with government support services. Studies show this sector are more likely to possess entrepreneurial and risk taking attributes. It might be the 2nd or 3rd generations where that economic impact is realised. BRW Rich List features many names of people from families that migrated to Australia as refugees.

innovation A culturally diverse workforce can foster ‘Creative Conflict’. Can lead to better decision making, introduction of new ideas, increased creativity and innovation.

Globally connected market place Research suggest positive link between having a diverse workforce and performance of multinational companies. Culturally diverse staff may have international connections, understand language and culture to make it a success. Simplifies the de-risks the process of entering new international markets.

liveability What is the Economic value of liveability? Is there a positive link between multicultural society and liveability? 1. Melbourne, Australia =5. Adelaide, Australia 2. Vienna, Austria 7. Perth, Australia 3. Vancouver, Canada 8. Auckland, New Zealand 4. Toronto, Canada 9. Helsinki, Finland =5. Calgary, Canada 10. Hamburg, Germany Source EIU liveability survey

liveability A attractive place to live = an easier place to attract talent to. A place with lots of talent = an attractive place for businesses to locate. The positive snowball effect.

Liveability & Place making

Tourism A place that is safe and welcoming for different cultures will be more attractive to visit. Word of mouth is the best advertising.

Hospitality & food industry Links into Liveability & Innovation More variety of high quality food = a better place to live. More variety of foods in close vicinity = more chances for food innovation and evolution. Food brings people together. Why not have a festival to celebrate!

Case study: viva Grampians pyrenees multicultural festival Multicultural Festival held in Ararat in 2010 & 2011 https://youtu.be/ry5IVIhPWkk

4. What are the barriers? Labour Market Barriers Recognition of Overseas Skills & Qualifications Language Barriers Lack of Understanding of the benefits of a diverse workforces Discrimination Lack of Australian Work Experience

4. How can we overcome the barriers? Streamline processes for recognition of skills and qualifications. Leverage off entrepreneurial spirit of migrants Provide more comprehensive work experience placement programs More information for business owners and key decision makers Improve quality of English teaching programs

Additional research required What is the economic value of liveability? What is the long-term value of refugee & humanitarian migrants Vs early support costs What is the value of an international student staying in Australia Vs supporting an Australian resident to gain the same qualifications?

In summary We have come a long way. It can be summed up in the evolution of ads selling us the merits of eating lamb: Original Lamb Chop Ad (2005) https://youtu.be/3dqsyXPkG3I The Diverse Lamb Chop Ad (2016) https://youtu.be/-9Ka3a7cdYw