Australia’s new economic policy approach aims to provide a framework for managing trade, investment and migration, but it also has a big economic question mark over its long-term viability.
Key points:Australia’s new foreign policy approach seeks to boost domestic economic growth and help it tackle the challenges of climate change and other international challengesSource: ABC News, ABC News AFR articleEconomic growth and job creation are the most pressing issues facing Australia’s economy, and the policy shift to a more inward-looking economic strategy comes as the world faces growing economic challenges.
While some countries, like China, are moving away from a reliance on exports and into more domestic markets, the United States, Australia and the European Union have seen their trade growth stall.
While the US has regained its spot as the largest economy in the world, the UK and Japan remain the largest trading partners.
The Australian government’s foreign policy strategy will also focus on encouraging the creation of new jobs in Australia, especially in the mining, manufacturing and service sectors.
“We are going to put a focus on the creation and employment of skilled workers in Australia and overseas, which will allow us to continue to grow the economy,” Finance Minister Mathias Cormann said on Monday.
He said the government would also look to promote the growth of domestic and international research and development in order to create jobs.
“There are so many things that can be done that are going on in the economy right now and we want to be sure that we’re investing in those areas so that we can create jobs and increase our economy,” he said.
Mr Cormann made the announcement ahead of the International Monetary Fund’s World Economic Forum (WEF) conference in Davos, Switzerland, where the organisation will discuss Australia’s economic prospects.
The economic policy statement is part of the government’s economic strategy for the next four years, which is expected to set out key areas for future economic growth, including the need for more research and investment, greater government intervention in the market and more investment in the sector.
“This is a new approach to the policy framework and we will be working with the international community and with the private sector to ensure that Australia is an effective global leader in these areas,” Mr Cormann told reporters.
Mr Rudd’s economic policy team is led by former Reserve Bank Governor David Kelly, who previously worked at the Federal Government and the Commonwealth Bank.
Mr Kelly will be the chair of the new team, and a former chief economist at the Reserve Bank, the World Bank and the OECD.
The new team will work closely with former deputy prime minister Penny Wong, who was the foreign minister at the time the Rudd-Gillard government announced its new approach.
The policy statement was released by the department of Finance, but Mr Rudd has not yet made it public.
In an interview with the ABC on Monday, Mr Rudd said he was confident the new strategy would be a success.
“It’s very important to understand that I don’t see a change in our economic position, that we’ve moved in the right direction,” he told ABC Radio.
“The policy framework has done a great job in helping us to make sure that our economy is stronger and more sustainable, and I’m sure that will continue to be the case, but I’m very confident that our future will be much stronger and much more sustainable.”
I’m not going to be putting a timetable on it.
“Mr Rudd has said the policy would be fully revealed to the public at a press conference later this month.