Is Australia the New Promised Land? Check out the essential Australia travel guide
First the good news
Above, Europe is looking at the barrel towards a new recession, and the United States is unable to free itself from its faltering economy and its high unemployment rate.
Here, the OECD forecast growth of 4% in the Australian economy and unemployment of around 5%. Australia is the best-performing country in the world.
How did it happen?
It’s easy to underestimate Australia’s success by sitting on top of a massive mine at a time when emerging markets, especially China and India, need everything Australia can produce.
But it’s more than that.
Since 1983, Australian governments have reshaped the economy and opened it up to the competition and to capitalize on their strengths. Second, the combination of surpluses and accelerated Keynesian economics limited the impact of the global financial crisis and its collapse in 2008.
What are the changes?
In 2003, the effective protection rate in the manufacturing sector increased from 35% in the 1970s to 5%. Foreign banks were allowed to compete. Airlines, freight, and telecommunications have changed. The labor market has moved from the federal wage-setting mechanism to the economic rationality achieved through negotiations. Taxes were adjusted, corporate and personal income tax reduced, the capital gains tax, and the goods and services tax were introduced, which did not hinder productivity.
Do you want a falafel with that?
Immigration policies have also been revised. In the 1940s, Australia was 98% Anglo-Celtic, mainly born locally. Today, more than 25% of the population was born outside of Australia, coming from more than 120 different countries. This number is only comparable to the name of Israel. European countries appear torn apart and defined by demographic movements. Countries like Belgium, France, the Netherlands, and the United Kingdom find it difficult to manage the number of migrants, which is around 10%. Resentment, racism, and riots are widespread. In comparison, Australia had a relatively peaceful, if not mixed, coexistence.
High-level migration has fueled the economy and now contributes over 350,000 people a year to the population. This number is not a misleading number for the government’s immigration targets, but it represents the net earnings for those who come to Australia each year to work and live, compared to those who leave. For these people, whatever the length of their stay, the infrastructure must be provided for them and their successors.