Australia - Economic analysis of government's policies, investment climate and political risk.






AUSTRALIA: Economic Policy Analysis

This site presents an analysis of the Australian government's economic policies compared to a revised list of 34 economic policies as prepared by Mr. Campbell Stubbs with the McKeever Institute of Economic Policy Analysis (MIEPA)in December of 2001. To read the analysis scroll through this site. To learn more about the background policies, click here  Introduction and Policy Recommendations

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Campbell Stubbs, an Australian native who currently [December 2001] lives in Berkeley, has completed a study of his home country government's economic policies as compared to the MIEPA list of policies as outlined above. The study on Australia is shown below. The ratings herein are based on the following rating scale:


5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 1996. Used herein with permission]

To read a disclaimer about the analysis in this file, scroll to the bottom of the file.

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Comparison of Australia's economic policies to MIEPA criteria as prepared by native student of Australia, Mr. Campbell Stubbs, studying in the US in December of 2001.



        1               5.0          15.0             15.0       100 %

        2               5.0          15.0             15.0       100

        3               4.0          12.0             15.0        80

        4               4.5          13.5             15.0        90

        5               5.0          15.0             15.0       100

        6               5.0          15.0             15.0       100

        7               5.0          15.0             15.0       100

        8               4.3          12.9             15.0        86

        9               4.0          12.0             15.0        80

        10              5.0          15.0             15.0       100

        11              5.0          15.0             15.0       100

        12              4.0           8.0             10.0        80

        13              5.0          10.0             10.0       100

        14              4.0           8.0             10.0        80

        15              4.0           8.0             10.0        80

        16              4.5           9.0             10.0        90

        17              3.0           6.0             10.0        60

        18              4.0           8.0             10.0        80

        19              2.0           4.0             10.0        40

        20              4.0           8.0             10.0        80

        21              1.0           2.0             10.0        20

        22              4.0           8.0             10.0        80

        23              4.6           9.2             10.0        92

        24              4.0           8.0             10.0        80

        25              4.0           8.0             10.0        80        

        26              3.0           6.0             10.0        60

        27              3.6           7.2             10.0        72

        28              4.0           8.0             10.0        80

        29              1.0           1.0              5.0        20 

        30              4.0           4.0              5.0        80

        31              5.0           5.0              5.0       100

        32              2.0           2.0              5.0        40

        33              5.0           5.0              5.0       100

        34              3.0           3.0              5.0        60

   TOTAL              134.5         300.8            375.0        80.2%
                      =====        ======            =====        =====

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1) Freedom from internal control 5.0

Citizens of Australia often feel strongly about the government's movements and decisions. As said they are free to accuse, compliment and express the way they think the government is operating. Newspapers commonly publish editorials, and letters from the public on current issues. There is no punishment for this, and no fear of consequences seeing as how there usually are none. The Australian government encourages freedom and supports many activities that its citizens take part in. The Australian Prime Minister is said to be an avid cricket fan and attends the odd test match. Business entrepreneurship and foreign investment is also highly encouraged and isn't bound by any well know laws, just the private ones that it agrees to. I.e. rent payments, fair wages, etc. The police enforce laws to a fair extent and crimes against the Australian government aren't that popular. People are also given free reign in terms of travel. Citizens are able to travel within Australian states and leave the country at the drop of a hat.

Source: Personal

2) Freedom of speech 5.0

Citizens can say anything they want by speaking to anyone about anything they want. It is racist remarks that often attract the most attention in terms of free speech. The whole country shares it's opinions openly, on weather or not the Prime minister is doing a good job or not for example. So the national debates, forums, speeches, protests, etc can all be discussed and shared in plain view, without fear of annihilation, murder, banishment, etc.

Source: Personal

3) Effective fair police 4.0

On a whole, the police are seen as effective, and on the right side of justice. Police The AFP (Australian Federal Police) says that it stands to enforce Commonwealth criminal law, and protects Commonwealth and national interests from crime in Australia and overseas. The AFP is somewhat similar to the FBI, but on a smaller scale. Police can often been seen on horseback, motorbike, car, etc, within major cities and are represented well in rural area's also. There is the occasional headline of police brutality, bribery, etc, but on the whole the police do aim to serve and protect the Australian people.

Source: -Date accessed 13/12/01 - Personal

4) Private property: 4.5

"It's not a house, it's a home!" This line is from a very funny Australian film made about a homeowners dispute with an expanding airport, wanting to bulldoze the house for the land used for the proposed construction. This film while hilarious does illustrate the protection provided given by the Australian government for private landowners. The homeowner does win the case after going to the Supreme High Court.

Citizens can freely buy and sell their homes, whenever and for whatever reason they wish. Although there are restrictions and rules on selling a house or land. These and many others such as the Transfer of Land act 1958, Transfer of Land (general) Regulations 1994, Sale of land act 1962,etc all act to intervene in the buying, selling and registration of a property. These acts do act to protect homeowners and buyers alike. Things like stamp duty, rates and land tax are additional costs of buying and owning a home within Australia. If you own land with a total unimproved value of US$42,000 or more (excluding exempt land), the owner needs to pay land tax. Generally people's personal property is protected and is subject to the terms on which it was purchased. i.e. Mortgage repayments, settlements, lease agreements, etc.

Source : 12/1/01 : Funny Australian movie! "THE CASTLE"

5) Commercial banks 5.0

The financial system within Australia consists mostly of commercial banks and merchant/investment banks. Banking access within Australia is very user friendly with many services offered at most branches such as ATM's (automated teller machines), personal consulting, phone banking, etc. The interest rates at which loans are borrowed at from commercial banks are regulated by the RBA (reserve bank of Australia). Many banks exist within populated area's including the three biggest banks or the national banks within Australia consisting of the Commonwealth bank, the NAB (National Australia Bank), and ANZ (Australia and New Zealand bank). The banking system is very effective and available to all citizens. The Financial Corporations Act 1974 requires a wide range of non-bank financial intermediaries to register with, and provide statistics to, the Reserve Bank of Australia (RBA).

Source: - date accessed 13/12/01 : - date accessed -13/12/01

6) Communication systems 5.0

Australia's communication systems are also very good in terms of business applications. In comparison to pager usage within the US, mobile phones (cell phones) have become very common and affordable among teenagers, business people and families alike. In September of 2000 there were 51 licensed telecommunication carriers operating within Australia. In June of 1999, there were around 850 service providers, over 520 of these being Internet service providers (ISP's) throughout Australia. So not only is cell phone usage and Internet access common throughout Australia, but the telecommunications industry is worth over A$26b!

Australia also has several television stations that are broadcasted free to air or paid for by advertisements. They provide hourly news updates with special news editions i.e. 6 o'clock, 10 o clock, etc and are very reliable in terms of being free from interruptions. Cable companies entered Australia not so long ago, but failed to really take off the way they are situated in the US. In 1996, it was found that virtually all households possessed a TV, with 59.1% possessing more that one TV. Some 79.3% of homes had a VCR, and about 1 in 20 households received pay or cable TV.

Radio is also readily available nation wide. In 1997 there were 263 radio stations operating throughout Australia. Like most of the world AM, FM are the two bands, with FM having the largest audience. Australian radio is much the same as American radio in that it serves as an information, news, music, advertisement and community announcement provider.

The Australian postal corporation (AusPost) is Australia's primary mail carrier. Generally the postal service does do a good job, and offers an express system similar to that of FedEx, for business operations and deliveries. In 1998 a national business survey showed that 63% of Australian businesses used personal computers in their day-to-day operations. Out of these a third of them had Internet access or were connected to a LAN. Obviously the bigger the business the more computers are used. Most businesses also use fax machines and modems for the transmission of documents. So both computers and Fax machines are common within Australian businesses.

Finally Australian newspaper and magazine companies also serve to inform the public on current issues and serve as resourceful communication systems. There are 3 national newspapers with smaller ones operating within each state. Many, many magazines are also published, and are readily available. It should been said that much of the media outlets (TV stations, newspapers, etc) are owned by media tycoon Rupert Murdoch.

Sources:- - Rupert Murdoch - date accessed 12/12/01 - Radio and television stats - - Personal - Australia post - - Radio and Television Services, Australia, 1996-97 (8680.0).

7) Transportation: 5.0

Australia's transportation system is of a high standard after years and years of development. Contrary to people's belief's Australia does actually have paved roads! In fact it has over 837,872 kilometers of paved highway. Although the further inland a traveler travels the less substantial the paved roads become. The rail system is also extensive allowing for freight and passenger travel. Australia has both the metropolitan systems specifically designed for urban travel (similar to BART) within most of its major cities, and a rural system specifically designed for long distance travel and freight delivery. Australia's rail network consists of over 40,478 kilometers of railroad. In terms of airfreight capabilities, Australia had 278 airports in the March of 2000. Of these 9 were licensed as international airports, which serviced international carriers.such as United Airlines, Cathay pacific, British Airways, etc.

Australia's sea freight activity is Australia's prime transport method of imports and exports. There is a seaport in every major city located on any one of Australia's coasts. The total sea freight activity that was transported to and from Australia's shores exceeded 488.4 million tones in 1999.

Source: -Transport and international freight activity - Date accessed: 12/12/01 -CIA-The World Factbook 1999 Australia. Date accessed 3/12/01

8) Education: 4.5

Education within Australia is at a high level compared with world standards, and available to everyone. In 1999 Australia had 3.2 million school students, of whom 2.2 million were in Government schools and 1.0 million in private schools. School attendance is compulsory between the ages of 5 through to 15. Education begins when children turn age five and attend kindergarten after a year children attend a primary school (elementary) for 6 years. Upon graduation of primary school, students then attend a high school for a further 6 or 7 years until graduation. While in the final year of high school, students wanting to enter a tertiary institution need to put in their preferences for a number of courses they are interested in studying. Whether or not students attends the university and the course of they're choice depends on their grades and national rank received at the end of the year. After graduation students can enter a university or TAFE (similar to a community college or JC). There are no compulsory requirements after completing high school such as military duty etc, so students are given free reign and are able to take up full time employment, travel, study, relax, etc.

In 1999, 3.2 million students were attending primary and secondary schools on a full-time basis with 70% attending public schools and 30% attending private/other types of schools. The final two years of schooling are outside the compulsory requirements of education, and in 1999, 86% of students remained at school until Year 11 and 72% remained until Year 12 (the last year of high school).

In terms of costs, primary and secondary education is free in government schools in all States and Territories. Tertiary education however is not free. Students often take a government loan to pay for fees, books, etc and pay back the loan on individual terms once employed with the qualifications received from the institution. Private, catholic and other types of schools also often charge expensive fees for educational services.

Sources: Education and training rates: - 12/12/01 Personal 9) Social mobility 4.0

Generally the rights of individuals are protected and the ability for each person to make a good living is unrestricted. The first point that can be raised on this issues is that statistics on Australia's work force show that men are often paid more and often work in higher paying jobs than women. In 1994 it was estimated that men on average earned 19% more than women. This is often referred to as the 'gender gap'. The second point being that people are hired for positions primarily for their qualifications and experience within the industry, regardless of background, skin color, etc. Although restrictions on employment often include: criminal records, proficiency in English, previous employment history, and citizenship status. Of course different requirements stand for different positions. Within metropolitan area's whites along with Asians dominate the corporate and small business positions. Aboriginals tend to reside in rural areas and work in rural industries such as cattle stations, farms, etc.

Source: Personal

10) Freedom from outside control 5.0

Australian citizens are free from control by any citizen or agency of any other country. Although Australia is part of the British commonwealth this has little or no effects on the citizens, and does not excise any stronghold or forms of control on what the citizens are allowed to say or do.

Source: personal

11) Foreign currency transactions: 5.0

In 1983 a change came about in Australian currency. The government decided to 'float' the Australian dollar. Meaning that instead of backing the dollar using a regulated system, it became subject to trade on the foreign exchange market place

The only currencies accepted within Australia are Australian dollars. Without them your money is no good. Unless that is you get them exchanged in to Australian dollars! The exchange rate between Australian and overseas currencies is expressed in terms of the amount of foreign currency one Australian dollar will buy. The Australian dollar is traded against many foreign country currencies and is available for exchange at all airports within Australia upon arrival in to the country. Banks are also able to exchange you money, usually for a fee and after checking the exchange rate listed for it that day. The primary currency that the Australian dollar is traded against is America's mighty dollar. Over a number of years the Australian dollar has been trading for less and less of the American dollar. Currently the exchange rate is around 54 cents against the US dollar. (A54 cents = US$1) Every currency including the US dollar must be converted in order to conduct business.

Source: - 7/12/01 - Personal - Australia's exchange rates - The Australian Newspaper '92

12) Border control 4.0

Unlike Europe, Australia doesn't share it's borders with any other country. It is the largest island in the world and is made up of 8 individual states and territories. When crossing in to other states the border control is much like in the US. Crossing the borders means just watching for the sign saying that you have just entered in to a new state with a population figure usually shown. However for its external border controls, Australia has increased its efforts to combat attempts at people smuggling in to Australia. The Australian government says, "It is firmly committed to the integrity of Australia's borders." Borders in this case meaning its coastline. Much work has been done on this issue. Federal Parliament did pass a number of new legislations in September of 2001, that were made to strengthen Australia's integrity in dealing with illegal immigrants and also aiming at discouraging the dangerous boat trips often made in order to reach Australia's shores.

source: - 7/12/01 - New measures to strengthen border control (71) - Personal

13) Currency 5.0

As mentioned later, the only currency accepted and traded within Australia is the Australian Dollar. This is the only government-approved currency. Any foreign money must be converted to Australian dollars before it can be used for purchases, investment schemes, traded, etc. Even though the American dollar is now worth almost two Australian dollars, this does not affect business transactions in terms of currency choice, etc. In terms of what you can buy with your money, a shepherds pie (pastry pie with steak and gravy inside, topped with mashed potato) costs around $A2.50. A bottle of milk costs around US$0.70 cents (A$1.50). In comparison to the bay area, the cost of living is much, much cheaper.

Source: Personal

14) Cultural, Language homogeneity 4.0

From 1905 to present the population of Australia has gone from 4 million to 19 million people. As said before Australia is an immigrants land. The national census in 1999 identified 24% of the population as being born overseas. That amounts 3.9 million with a further 2.9 speaking a different language than English at home. Australia's Primary language is English, seeing as how Australia was founded by the British and is part of the Commonwealth. The 1996 Census also showed that a further 27% of persons born in Australia had at least one overseas born parent, that is, they were second generation Australians. Of the current population born in Australia 95.6% of the population said that they speak English "well/very well", with 0.6% saying they did not speak English at all. Australia truly is a multicultural country in that its inhabitants do come from all over the world. Australia receives people from places like Vietnam, UK and Ireland, Greece, China, Yugoslavia, Poland, etc.

Australia's original inhabitants, the aborigines have suffered tremendously since Australia's founding. Estimates of about 250 Australian Indigenous languages were said to exist at the time of European settlement. The population of Australia's original inhabitants has declined greatly. The situation today is much the same as the Native Americans. Many problems exist within the aboriginal communities. These communities more than often reside in the rural parts of Australia, mostly Western Australia and the Northern Territory. However the population speaks English as a whole and do share the common values of family, wealth creation, and a peaceful society.

Sources: - 6/12/01 - - 6/12/01 - 1996 Census of Population and Housing. - Personal

15) Political effectiveness: 4.0

Examples of problems that the government has been dealing with include illegal refugees. Australia, like America is an immigrants land. Many illegal immigrants attempt to seek asylum into Australia each year. The government has responded to this by increasing it's costal watch carried out by coast guard and Navy vessels. Another problem that received immediate attention by the government was when Port Arthur Massacre occurred in 1996. After this tragedy, the government responded to this tragedy by placing some of the strictest gun laws in the world on Australia. So the government certainly is capable of recognizing and solving problems. Australia is a constitutional democracy, with federal and local voting mandatory for anyone over the age of 18. In terms of political effectiveness, that is, what happens after the voters vote, the government usually does well. In 1999 a vote to establish Australia as a republic was put to a nation as a referendum. This would mean letting go of the queen and becoming an independent nation. The proposal was unsuccessful, with 54.9% of electors voting against it. This is a good example of political effectiveness as if it had been successful there would have been a major shake up within government.

Source: - Unauthorized arrivals and detention- 6/12/01 - Personal

16) Institutional Stability: 4.5

Overall Australia is a stable country making one of the luckiest countries in the world. No major wars, conflicts or riots have broken out for many years. Nor does Australia have a violent history. The average cyclone, flood and droughts do strike, mostly in the Northern parts of the country, but with no major upsets to the country itself. Elections are regularly held with political parties changing power occasionally. But business ventures do fluctuate. Recent bankruptcy claims of Australia's major domestic airline Ansett, and major upsets within the largest insurance provider don't send out a good image. Although business's such as banks, other insurance companies, the two Australian car companies (owned by GM and Ford although run independently), and various food companies have long histories in Australia. The levels of foreighn investment are also high, aiming to ensure long successes, and profitable ownerships within Australia

Source: personal

17) Honest government 3.0

"Although they all have their heads in the trough, some pigs are better than others" This is a common saying or feeling referring to Australian politicians and the voting of them. There have also been claims of police corruption within various states, and a well-known game fixing scandal that involved bookies and the Australian cricket captain. Corruption within Australian parliament and politicians is thought and believed to exist. Many allegations have been made in the past, (the former premier (governor) of Victoria now sits on the board of directors of a major electric utility he arranged the privatization of), it is not as significant as indicated in the country study on Russia. In order to start up a small business the successful implementation wouldn't require bribing, conspiring, claiming, etc.

Source: -12/2/01 - Personal

18) Common Laws 4.0

Australia's legal system is made up of acts passed by the Federal Parliament being passed under the Australian constitution, the Australian common law (mostly based on the English system), and acts passed by the high court. For a new federal law to be passed it must go through the governor general (the Queens representative). For the court ruling system, the matters that are brought foreword can come under the three levels of legislative, executive and judicial. The legal system can be seen as effective, and is certainly in place for the common man. The commonwealth government is also said to provide legal aid to all those "under special circumstances." Basically the Constitution is the fundamental law of Australia making sure everybody including the Commonwealth Parliament and the Parliament of each State are subject to it and its ruling decisions.

Source: date accessed 12/2/01

19) Central bank 2.0

The reserve bank of Australia (RBA) is Australia's central bank. The duty of the central bank is primarily to formulate and implement monetary policy. The bank's duties also include monitoring the monetary and banking policies of its divisional banks, ensuring the stability of the currency of Australia (Australian dollars), maintaining full employment within Australia and the targeting of economic prosperity and welfare of the Australian people. There are certain acts also to which the RBA must work under. These include the payment systems (regulation) Act 1998, Payments Systems and Netting act 1998. These acts aim to control the risk and manner in which the financial system is run, promoting the efficiency of the payments system and promoting the competition for market payment services The RBA is fully owned by the Australian Government, to which its profits go to. This goes to say that Australia's central bank does operate under government control and isn't independent of political control.

Source: date accessed 12/2/01

20) Domestic budget management 4.0

Australia's budget findings are usually published every year in the newspapers when it is released. The government site exclaims that there will be a budget surplus of US$750 million for the fiscal year of 2001-2002. This surplus is planned to be invested in to the current welfare system, tax reforms, job strengthening and training programs, youth initiatives, etc.

FY1999-2000: Total Revenue collected: A$161.5b; Percentage of GDP: 24.1%

Total Expenses incurred: A$156.8b; Percentage of GDP: 23.4%

Source: / 2/12/01

21) Government debt 1.0

Although Australia does have a wealth of mineral resources, a relatively low unemployment rate and is a developed country, it's foreign debt is extremely substantial. The latest figures Australia's foreign debt has surged to a record US$150 billion in the June quarter of 2000. This accounts for Australia's total debt being equal to 46 per cent of annual GDP! This is an extremely large debt. Being a young country it is said that Australia has always had to rely on foreign investment and finance to ensure its development and economic advancement Although world interest rates have been falling since the early 1980s, this has not maintained Australia's debt's or level of foreign investment. The Australian dollar has also been consistently falling and has weakened against the pound, yen, and not to mention the US dollar. Almost three periods of government regimes have vowed to lower the national foreign debt. With the Howard government comming in to office in 1996 the debt has risen considerably. Poor government planning and rationalizing of Australia's enterprises are to been seen as the top reasons for Australia's current and dismal economic situation.

Source: -12/2/01 - 12/2/01 The guardian 6/21/01: Noesdive: Government fiddles while dollar melts

22) Economic statistics 4.0

As with any society the difference between gossip/propaganda and the facts has to be determined. As seen in this research there are many sites on the web that offer valuable information and statistics on Australia's economy and standings. The Australian Bureau of statistics ( offers many statistics on Australia's economy and other vital statistics. Newspapers such as "The Australian" and others often serve as the source for economic stats along with the television news. The reliability of these statistics is usually pretty good with few exceptions. In all many statistics are available for market research completed by potential entrepreneurs and researchers.

Source: -personal 11/29/01

23) Protection of public health and safety: 4.6

About 800 new cases of Tuberculosis are caught and treated in Australia each year. New immigrants and refugees who have TB prior to arrival in Australia are at risk. Apparently after diagnosis of TB is made it is a legal requirement for the doctor to notify the Department of Health. The tests that follow may identify the other people to whom the TB has already been passed. This is done mainly to protect citizens against an outbreak or health scare of TB. So Australia does well in maintaining public health against possible outbreaks or health scares.

In comparison to America's 7.2 infant deaths per 1,000 births, continuing a long downward trend, Australia's infant mortality rate stands at 4.97 deaths/1,000 live births (2001 est.) This is one of the lowest rates in the world! Although America's is much higher, it has a far larger population than that of Australia and a much different, not to mention more expensive health system. Australia's health system is also one of the best in the world. It has a health system much similar to Canada's and a national insurance scheme called Medicare. Medicare is the public health system and is available for everyone. It keeps the medical costs and doctors' fees down, for most consultations, hospital operations, emergency treatments, etc.

The private health care system however is backed by big corporations, who often stand to profit from citizens taking out private health care insurance. There has been much speculation for a new health care system, and various rebate's offered by the government. The federal government has also launched a few campaigns urging citizens to take out private health care, as numbers have been falling over the past few years.

Source: - - Howard's private agenda for health care -11/29/01 - Community health and Tuberculosis Australia -11/29/01

24) High wage policies 4.0

Australia does well in terms of paying its workers. In order to facilitate this Australia has many unions in place in order to protect its workers, many of which are in the trade industry. At the government or top level is AIRC (Australian Industrial Regulations Commission). They serve to intervene in negotiations between employers and employee's about fair wages and fair working conditions. They also aim to ensure that minimum wages and benefits are being paid in accordance with original agreements within the working parties. Occupational health and Safety has also gained much attention within business as government agencies such as Work cover have put increased pressure on private firms. WorkCover being a government agency "works primarily to eliminate death, disease and injury in the workplace." However it's main concern isn't wages of the workers.

The standard of living within Australia is quite high, in fact fairly similar to that of the US. Depending on job status/position the average worker can afford to rent an apartment, watch his or her own TV and run a car. Obviously the higher education received the more likely a large salary becomes. Although everyone is under different circumstances, family, age, education, etc low skilled workers often live with their families or roommates in order to live well. The average Australia wage is around $16,000 US dollars. The federal minimum wage in Australia today, converts to about $7.50 US, while the US minimum wage stands at $6.75.

Source: http://www.workcover.act

25) Environmental protection 4.0

Australia certainly does have a firm focus on protecting its flora and fauna. Many organizations have been set up including NEPC (National Environment Protection Council), EPA (Environmental Protection Agency) which is part of the department for environment and heritage, Green peace which is also active, and many other non profit organizations dedicated to preserving the environment. The EPA is said to be the most prominent within Australia and has the responsibility to protect the quality of the air, water, control of pollution emitted to the atmosphere, proper management of waste and the ongoing rehabilitation of both coastline and inland environments.

Issues such as vehicle emissions (while no where near as strict as Californian requirements), greenhouse emissions, and industry regulations are being continually developed within government and outside agencies like EPA. Although these and other regulations are often slow to be put in place and often seen ineffective by the public.


26) Strong army 3.0

Australia's defence force's primary role is to "defend Australia and its national resources." Australia does have a strong army numbering 24,290 full time members and 18,623 part time/reservists. The army acts domestically when natural disaster such as floods, cyclones, and drought strike throughout Australia. Australia's military abroad takes part in peace-keeping missions around the world, the most recent one being in East Timor.

Australia's RAN (Royal AustralianNavy), RAAF( Royal Australian Air Force) and RAA(Royal Australian Army) forces totaled 50,929 full time personnel in 2000. The ADF (Australian Defense Force) statistics show that for the same year, it recruited 74% of its full time forces and 31% of its targeted reservist recruits. This is a result of changing lifestyles, and a relatively low unemployment rate within Australia. It is a common belief that if Australia was attacked by an outside force it would have to rely heavily on it's allies, mainly the UK and US, for military support. Threats such as China's military (numbering in the millions or personnel) and other nations with both larger militaries and populations would be security concerns if a threat ever became imminent. However this does not effect day to day life and would certainly not hinder business operations.

Source: :

27) Foreign trade impact 3.6

Foreign trade accounts for 22% of the GDP with Japan buying 20% of merchandise exports in 2000. 84% of Australia's imports were manufactures, which shows Australia relies heavily on foreigners to manufacture the goods Australia uses and produces. Australia being a medium sized trader realizes that open investment is vital to economic growth and encourages trading on all levels. The total of both imports and exports equals almost 200 million which is about 100m US.

Two biggest imports: - Automobiles 6% -Crude petroleum 5%

Two biggest Exports: - Coal -Wool/beef -Wine exports to the US also totaled $300m.

Source: - - Australia's financial future

28) Protection of foreign currency earning enterprises 4 .0

For foreign currency earning enterprises, Australia has and continues to trade with many nations around the globe. Today over 60% of Australia's trading partners are from East Asia. Furthermore Australia serves as a cast and key supplier to the world of important commodities, serving to aid countries in times of crisis, such as Somalia, Afghanistan, Turkey and kosovo, etc. Exporting of both goods and services does play a vital role in generating almost a quarter of Australia's economic growth, so the government has launched several schemes in order to support the sector.

The new industries development program (NIDP) is part of the federal government's program to support Australian industry by providing financial aid. This is seen as an effort to improve Australia's exporting performance and further commercialize various industries. The Australian government also allocates $1.5m US in this year's Budget for the development of a National Food Industry Strategy to help secure the food industry's further development, which will hopefully lead to growing exports. A similar assistance package is in place for the dairy farmers and dairy communities most affected by the deregulation of Australia's milk market by State governments.

There are several initiatives that differ in different states but they are available and are in place, which benefits industry and future entrepreneurs.

Source: -Export and trade practices act -

29) Management of foreign currency budgets. 1.0

Australia's merchandise exports rose by 13.1% to $97,255m along with Australian merchandise imports rising by 12.8% to $110,083m in 1999-2000. The imports minus the exports totaled 12,858m. This shows there is a significant imbalance, making the difference positive. It is know that Australia as a whole buys much more than it produces internationally. This belief would support the facts that the net foreign debt of the public sector (general government plus public financial and non-financial corporations) stands at about $15 billion US. The score is awarded because the government foreign debt is very substantial. It demonstrates a weakness and a reliance on foreign sources for both merchandise products and finance.

Source: -Foreign accounts and trade: Date accessed 11/22/01

30) Layers of collective action 4.0

Australia does have many layers of collective action. Many non profit organizations exist such as the Australian Red cross, amnesty international and many others. Local school boards are usually elected or volunteered for within both private and public schools. These school boards usually monitor and change policies and hold working bee's to improve school surroundings, facilities, etc. Municipal or local governments are also in place in both rural and metropolitan areas. Much like the Berkeley city council they hold meetings and have agendas on current issues facing the communities.

State and Federal elections are held regularly and it is mandatory that every Australian citizen must vote, even when living overseas, once over the age of 18.

Source :

31) Pro Business climate 5.0

Australia's business climate does place a high value on business. Australia like America is a capitalist or free market society where entrepreneurship is thoroughly encouraged. People do enjoy the high status and luxuries of becoming a successful businessperson. Australian people do enjoy imports such as European cars, Swiss cheese and Indian rugs, although the consumer market much prefers buying a product that is both owned and operated within Australia to support Australian companies, the Australian Economy and the creation of wealth within Australia. . In May 2001 the average weekly earnings for Australia was $663.10, about $300 US dollars. In October 2001, the national unemployment rate stood at 6.9%. The unemployment rate has remained fairly steady over the last few years, with many political campaigns vowing to lower it.

Source: :Economic indicators for the ACT

32) Government enterprises 2.0

Australia's government enterprises aren't as well numbered as they used to be. There are currently 14 listed on the official government site. At the beginning of the 1990's the Australian Government went through major changes internally. A popular idea behind privatization was that the government was attempting to control monopolization by regulating and dispersing theses government enterprises. The government owned enterprises such as airports utilities, transport systems, and telecommunications companies, most notably Australia's major phone company, Telecom slowly became privatized. Usually meaning sold off to private, often foreign investors. There was and still is much opposition, worker strikes and listed newspaper editorials to prevent the privatization within the nation. Although many layoffs occurred once companies became privatized, significant revenue was raised for the government.

In recent times these privatized companies have come under fire because of handling (often cost cutting) of these newly managed companies. One such case involved Sydney's water system becoming contaminated, not long after becoming privatized. Many citizens blamed the corporatization of the utility for this problem. Many Australians hold negative views against privatization as it usually causes unemployment within the public sector, in due course a loss of revenue for the nation itself, and foreign ownership of previously Australian owned and run companies.

Source: - Personal -

33) International security agreements 5.0

Australia is both a member of NATO and an ally of the US. With regard to security, the Australian government also states that it is committed to undermining the spread of WMD (weapons of mass destruction) with in the pacific and Australasian region. Australia also joined the MCRT (missile control regime treaty) in 1990 and is part of a ballistic missile early warning partnership program with the US. The feeling of security within Australia is fairly high, as Australia has been involved in very few military/terrorist attacks in the country's short history, and has few enemies. Australia's armed forces saw action in both world wars, Vietnam as part of being an ally with the US and most recently in East Timor. One obvious although unavoidable flaw in Australia's defense is its geography. Australia being a continent and the world's largest Island is left incredibly vulnerable to foreign attack, although this has little or no effect on business's and their operations both locally and internationally. There are as there are no adjoining states or countries that divide Australia's boarders with other nations, although New Zealand serves as a worthy neighbor and ally. However being part of the British Commonwealth and being a close ally of the United States gives Australia a unique and strong base for international security agreements.

Source: -, missile profiliation. - Personal

34) Protection of Domestic Enterprises from Government Mandated Costs 3.0

The Australian government thoroughly encourages entrepreneurship in its know form, and also holds seminars promoting the vast opportunities for business's to operate within Australia also encouraging foreign investment. The ACT (Australian capital territory) government offers many incentive programs, tutorial schemes, and both government grants and assistance packages to ailing business's to help promote small business within Australia. The introduction of the GST (goods and services tax) has had various implications on the Australian economy and workplace. It was introduced on the 6/30/99 as a supposed "new tax system". Although many benefits were advertised for the middle-income family it has been said that small businesses will need to spend on average of 254 extra hours a year on paperwork and set up costs will have increased by at least $7,000. This does have negative effects on becoming a small business owner. It is said that in many other countries with a similar tax system, a lot of small business's were forced to close as a result of the implications put upon them. Other aspects of government mandated costs include an ABN (Australian Business Number), various import/export stamp duties, etc.



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