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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.
RATING SUMMARY POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE 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% ===== ====== ===== =====Return to MIEPA's Home Page
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.
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.
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
Source: http://www.pansw.asn.au/Default.htm -Date accessed 13/12/01
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 : http://www.land.vic.gov.au. 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: http://www.users.bigpond.net.au/chayeskiwebtop/html/banks_aus.htm -
date accessed 13/12/01
: http://www.anz.com.au - 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
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:- http://encarta.msn.com/index/concise - Rupert Murdoch - date
- Radio and television stats - www.abs.gov.au
- Australia post - www.auspost.com
- 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
Source: -Transport and international freight activity - www.fed.gov.au
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,
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: www.abs.gov.au - 12/12/01
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.
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.
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
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.
- 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: http://www.immi.gov.au/facts/71border.htm - 7/12/01
- New measures to strengthen border control (71)
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.
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: - http://www.abs.gov.au/ausstats/- 6/12/01
- http://www.anu.edu.au/pad/nugget/99/v18/population.html - 6/12/01
- 1996 Census of Population and Housing.
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: -http://www.immi.gov.au/illegals/uad/index.htm- Unauthorized arrivals
and detention- 6/12/01
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
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,
Source: -http:www.fairfax.com.au -12/2/01
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: http://law.gov.au/auslegalsys/auslegalsys.htm- 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: www.rba.gov.au 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: http://www.budget.gov.au/MYEFO/index.htm / 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: http://www.bobbrown.org.au/Media/05-10a.htm -12/2/01
http://www.zipworld.com.au - 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 (www.abs.com.au) 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
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: - http://www.drs.org.au/howards_agenda.html - Howard's private agenda
for health care -11/29/01
- http://www.chata.org.au/index.html- Community health and Tuberculosis
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.
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.
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.
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
-Wine exports to the US also totaled $300m.
Source: - www.budget.gov.au
- 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
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.
http://www.abs.gov.au -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.
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: http://www.act.gov.au/snapshot/ :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
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.
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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