Australia as a branch office economy

There has been a recent tendency for the location of executive leadership of companies engaged in natural resource-based production to shift from Australia to the Northern Hemisphere cities. What is the cause of this tendency?Does it matter to Australian welfare?If it matters, is there any action by Government that can weaken the tendency or reduce its negative effects? Direct regulatory intervention to prevent relocation of corporate headquarters is unlikely to increase Australian welfare. However, reforms to reduce transport and telecommunications costs and to increase the attractions of residence in Australia of people with skills that are important in executive leadership would have positive effectsAgricultural and Food Policy,

The market and the state in economic development: Some questions from East Asia and Australia

From the birth of modern economics with Adam Smith's Wealth of Nations two centuries ago, debate has continued in the West about the appropriate roles of markets and state intervention in co-ordinating economic activity. We have learned a great deal in principle from the concepts of public goods and external economies, and from the theory of public finance which relies so heavily on them. We have also learned that much depends upon the institutions and the ideas that shape the effectiveness both of markets and the state. The economist and the historian have been provided with a rich new set of data on the big theorems by the success of the economies of East Asia in recent decades. Japan, Taiwan, South Korea, Hong Kong, and Singapore have expanded economic output faster for longer than any other in world history. In this paper, I focus on a different type of implication - the implication of this new and powerful case of economic development for our understanding of economic processes. To the economist whose discipline is a social science, the emergence of this new case in a different cultural and institutional setting is as great a gift as a new hemisphere to an astronomer

Monetary Stability in Economic Development

This paper addresses four issues. The first is the identification of the regimes amongst which a choice can sensibly be made. The second is whether the use of an external currency would create a ‘currency area’ that would be more helpful to economic development than monetary independence. The third is whether, if monetary independence were likely to be optimal in theory, it would be superior in practice to integration into an external currency area, given the likely qualities of monetary policy at home and in the best alternative monetary area. The three issues are interrelated. This paper supplements recent work by Duncan (2005). It supports Duncan’s conclusion, that the South Pacific economies would provide themselves with a firmer monetary base for economic development if they were anchored firmly to an external currency. It provides some additional information and analysis that strengthens the case beyond that made by Duncan, arguing for a single or series of South Pacific currency boards linked to the Australian dollar or, better still, for all of the countries concerned, but more difficult to achieve, to a new currency formed through monetary union between Australia and New Zealand

A Pacific Free Trade Area?

This paper takes as the central objective of international economic diplomacy in the Pacific region, the preservation and enhancement of the conditions for continued economic growth in the style of recent decades. The international system that has supported vigorous trade expansion is under threat from several directions: tension between the United States and Japan (and to a lesser extent between the United States and Taiwan and Korea) over large trade and payments imbalances; the prospect of increased economic introversion in Europe as 1992 approaches; the accommodation of new patterns of comparative advantage in the Asian newly industrialised economies (NIEs) as they compress into a few years adjustments to a decade of rapid economic growth; and the new challenge of managing the emergence of China, with its partially reformed centrally planned system, as a major player in Pacific economic relations. It is important for peace and political stability, too, that the environment of relatively open economic relations that made a realistic alternative to autarky available to China at a crucial point in its political history, is preserved to provide similarly reliable alternatives for the states of Indochina, the Soviet Union and the Democratic People's Republic of Korea (DPRK), at a time of opportunity for progress on reducing longstanding sources of conflict

Advances in risk assessment for climate change adaptation policy

This is the author accepted manuscript. The final version is available from the publisher via the DOI in this recordClimate change risk assessment involves formal analysis of the consequences, likelihoods and responses to the impacts of climate change and the options for addressing these under societal constraints. Conventional approaches to risk assessment are challenged by the significant temporal and spatial dynamics of climate change; by the amplification of risks through societal preferences and values; and through the interaction of multiple risk factors. This paper introduces the theme issue by reviewing the current practice and frontiers of climate change risk assessment, with specific emphasis on the development of adaptation policy that aims to manage those risks. These frontiers include integrated assessments, dealing with climate risks across borders and scales, addressing systemic risks, and innovative co-production methods to prioritize solutions to climate challenges with decision-makers. By reviewing recent developments in the use of large-scale risk assessment for adaptation policy-making, we suggest a forward-looking research agenda to meet ongoing strategic policy requirements in local, national and international contexts. This article is part of the theme issue ‘Advances in risk assessment for climate change adaptation policy’.The authors acknowledge support from the UK Department for Environment, Food and Rural Affairs in the preparation of the International Dimensions Assessment of the UK Climate Change Risk Assessment. W.N.A. acknowledges support from High-end Climate Impacts and Extremes project of the EU. S.S. would like to acknowledge the financial support of Ireland’s Environmental Protection Agency (EPA) under the EPA Research Programme 2014–2020, of the UK Economic and Social Research Council (ESRC) through the Centre for Climate Change Economics and Policy, and of the Grantham Foundation for the Protection of the Environment through the Grantham Research Institute on Climate Change and the Environment

Global development in the Twenty-first Century: the maturation of global development – responses to three critiques

Modern economic development does not travel for long in a straight line. Making sense of the periodic changes in direction is the never-ending challenge of economic analysis. My 2015 Holmes Lecture took up the challenge of explaining new twists and turns in the 21st century. Productivity and output growth are markedly lower in the developed countries, especially but not only since the great crash of 2008.  The populations of the developed countries are ageing rapidly and the labour forces declining or growing slowly. Global savings are high and investment low, giving rise to historically low real interest rates.&nbsp

A vision for arts led urban renewal in Adelaide and the City West Campus of the University of South Australia

Various perspectives on universities and urban renewal in the post-industrial era are considered in the international literature. These include universities’ roles as drivers of physical environmental change and of economic and social improvement; their relationships, and sometimes tensions, with immediate and wider neighbours; and the social, infrastructure, economic, cultural, educational, and local environmental sustainability benefits of a university’s presence for a city and its residents. One theme within the literature on universities’ economic and cultural contributions is their potential and actual role in the evolution and development of arts and cultural quarters. This paper considers that topic in relation to the University of South Australia’s City West campus that opened in 1997 in an area of Adelaide known as the West End. The campus was built adjacent to an emerging arts complex. Soon after UniSA announced its decision to move to the new location, the Adelaide City Council commissioned the West End Urban Development Strategy to optimise the benefits of the university’s presence. This paper introduces and reviews that Strategy and a subsequent, related, initiative of the City Council and the South Australian Government to establish the West End as an arts and cultural quarter

China 2002: WTO entry and world recession

In 2002 China enters the WTO. Long awaited by the world’s trading economies, it now comes in a year of global recession. What effect will China’s entry into the WTO have at a difficult time? The rapid expansion of China’s trade has required large adjustment in its trading partners, and the expansion and adjustment will accelerate with WTO entry. The internal adjustment pressures in China from WTO entry are also immense. Recently dubbed Australia’s Ambassador to the region by Rowan Callick of the Financial Review, Ross Garnaut was Australia’s ambassador to China through an earlier exciting period when China took its first major steps towards opening to international trade and investment. He was instrumental in the development of China’s thinking about the WTO. Ross Garnaut is Chairman of the China Economy and Business Program at The Australian National University. Australian members of the Program and their associates gather each year for the China Update. Ligang Song is leading authority on the internationalisation of the Chinese economy and on the development of the private sector in China. He has worked at Peking University and People’s University in Beijing and at the International University in Tokyo