Australia at the Crossroads of Globalization

Australia at the crossroads of globalization is an article in the Christian Science Monitor about Australia's economic transformation and the impact of globalization.

For 15 years, Australia has grown at an average 3.7 percent clip without any sign of recession. The stock market is up 37 percent this year, and, last week, registered a record number of trades. The boom has slashed unemployment, doubled the country's wealth, and taken care of all but pocket change on its debt.

.....

Australia's winning recipe does not hew to a hard-line economic libertarianism. Government turned to labor unions to help secure productivity gains, and Australia maintains one of the world's highest minimum wages, for instance.

.....

Major state-owned firms were privatized. While the selling of the phone company and the national airline still rankles some who say service has declined, the move also inspired many ordinary people to become shareholders in the companies. Today, 55 percent of adults here own stocks - the highest comparable rate in the world, says a national exchange spokesman. That is not counting any of the retirement accounts requiring workers to deposit 9 percent of income - some in stocks - now mandated by the government.

.....

For the most part, reformers have kept voters on board by sticking to the notion of the "fair go." This deeply held Aussie value means looking out for those at the bottom of the heap. Through all the reforms, Australia has continued to set minimum wages per industry. Benefits like healthcare, pensions, and prescription drugs are also means tested, directing more to the poor than the wealthy.

.....

The gap between rich and poor in Australia is widening. In 1995, the richest 1 percent garnered 5 percent of the national income; now it's 9 percent. CEO pay has also shot up in relation to the average worker. These trends, and impending changes by the government to slow minimum wage growth, are stirring popular misgivings and protests. A poll last month revealed a broad consensus that the country had become a meaner place over the past 10 years.