1 AUSTRALIA - economic overview Lecture 6

2 AUSTRALIA economic overview 1.Economic trends &patterns 2.Principal factors of change - POSITION 3.Economic cycles 4.Internal & external influences 5.International positioning

3 1. Economic trends & patterns AUSTRALIA : a prosperous nation –GDP –Natural resources –Imports and exports –protectionism –International dependence –Adapting to globalisation

4 2. AUSTRALIA’s position –Source : Le dessous des cartes

5 Prosperous but fragile AGRCULTURAL ISSUES –Wheat & cereals –wool –wine MINING –gold –Bauxite (aluminium) –uranium –Natural gas & oil THE MANUFACTURING SECTOR –Steel works & shipping –Car industry –Textile industry THE TERTIARY SECTOR –Transports & tourism

6 Natural resources Source : Le dessous des cartes

7 3. Economic cycles POST WW2 : THE BOOM PERIOD –Boosting primary and secondary industries: => reconstruction & a new consumer society 1970s –The beginning of economic decline linked to a world recession 1980s –The emergence of the impacts of globalisation 1990s –repositioning AUSTRALIA in Asia 21st CENTURY –Ambitioning as a regional world player –Unaffected by 2008 GFC (global financial crisis)

8 3. now From the tyranny of distance to the advantage of adjacency –New markets (China, Japan, India & D. Korea) –Plenty of resources => minerals boom –Gas => Gorgon project in Western Australia –Iron ore => steel to build Asian cities and infrastructures –=> prosperity –BUT –Also pushing up the value of the Australian dollar –Therefore making it expensive for: –foreign tourists –Foreign students –Wine industry

9 4. Internal & 5. external influences POST WW2 : the MENZIES era ( , ) –Protectionism, loyalty to GB, anti-communism The return of the ALP (Australian Labor Party) Important politicians –Gough WHITLAM ( ) –Bob HAWKE ( ) –FRASER ( ) –KEATING ( ) –John HOWARD ( ) –Kevin RUDD ( ) –Julia Gillard (24/6/10- The issues –Fighting the cultural cringe in the 1970s – (1973 Patrick White, Nobel prize for literature – The tree of Man) Schindler’s list by Thomas Kenally // Bee Gees, INXS, AC/DC –implementing the FAIR GO (justice, workers’ heaven) –Adapting to a global world –Re-thinking Asia Customers – friends –Imports / exports

10 5. International positioning AUSTRALIAN lessons (to be taught / learnt): POLITICAL: –Close to or far from (Asia or USA) ECONOMIC: –Mining for big customers (China) –Asian partners ENVIRONMENTAL – to think green or to be green? –Coal for power? –Water for agriculture (like California?) –Uranium sold to whom? –Green tourism

11 AUSTRALIA’s interests –Source : Le dessous des cartes