The Australian Government has embarked on the development of a White Paper on “Australia in the Asian Century”. The work on the paper is being led by DR Ken Henry AC and will be completed by mid 2012. Considerable public, including business, consultations have been undertaken resulting in a wide range of people being canvassed on social, political and business aspects of our position in Asia and where it’s likely to be in the future.
I think the introduction to the Terms of Reference is worth repeating, “The greatest influence on the future prosperity of Australia is the dramatic shift of economic power and as a result, strategic weight to Asia” “This shift has been underway for some time but has never been more rapid or more profound for Australia’s interests“. “We are a decade into the Asian Century. Is Australia ready to take advantage of the great opportunities this transformative event will bring” Is Australia prepared for the changes – here at home and in our external relations – that will also come? What do we need to do to better prepare Australia”
This is very timely exercise and we commend the Government for the initiative. From a business perspective I can hear people saying so what’s different? sixty plus percent of our exports are already going to Asia and logic says that will simply continue as it’s done for the last ten or fifteen years. What I think we fail to grasp is four things, first, the rate of growth is nothing short of phenomenal, ten years ago China was by international standards deemed an emerging economy, today its already the world’s second biggest economy and rapidly heading for number one. Second we seem to be transfixed on China and India while countries like Indonesia and Vietnam to name just two have substantial potential as they too are driven by the massive increase in their very business savvy middle class. Third, we are not the only players on the block, the USA, Germany, UK and many other are out there driving their export capability, probably much harder than we are. Finally this middle class we refer to is not only getting bigger, its well educated, very brand conscience and rapidly adopting western behaviours in many of the things they do and wear and in particular many of the things they choose to eat.
Having had the pleasure of working in a number of Asian countries I have gained some insight into where I think Australia stands and what have been the drivers in us acquiring that position. Interestingly some quite small things have made an important contribution. The first is respect for the management of our economy. I recall when I was working with a few different countries before and after the “Asian meltdown” Before it, the broad perception of Australia was a steadily growing economy, three of four percent growth with not much happening, no real excitement a sort of steady as she goes mentality. After, when Australia clearly survived almost unscathed, the rhetoric was different. No more “we are the Tiger economies and you simply don’t fit”, replaced by “you must be doing something right, how can we learn from the Aussie experience?” The same thing is occurring now, while we may not be seen as a truly dynamic, there remains a sound level of respect which I think will last us a very long time. Australia too should not underestimate the contribution Universities and other places of learning have contributed to our business strength in Asia. Many leading business men and women and government officials particularly in South East Asia and India were educated here in Australia. Many now occupy positions of influence, money and importantly they know the business behaviour of Australians which is vital to building a sound and workable relationship.
Having this respect and knowledge of our business culture is an important building block for the future. But a building block it is. We too need a better understanding of the business culture in different Asian countries and we too need to make sure that we continue to play a significant role in educating the middle class of Asia.
On the subject of business culture, we urge the Government to work with the private providers in making sure there are funds to train our exporters in this fundamental aspect of doing business in different Asian countries. Let’s see no more money wasted on language courses for exporters that no one has the time or inclination to endure, instead focus on how our neighbours think in terms of business and I’m sure greater outcomes will result. And let’s see Government really get behind the continued development of inbound education, it paid enormous dividends in the past and will continue to in the future. And finally, don’t underestimate the value of the media, Radio Australia played a massive role in positioning Australia in Asia and given the rapidly expanding communication opportunities, we need to be leaders in the field as we were twenty five years ago.
And one word of caution, Asia is not one culture, its many very diversified, colourful and exciting cultures. Australian’s must never assume one size fits all, it doesn’t.
We wish Dr. Henry and his team at DFAT well with this important initiative.
Ian Murray, Executive Director- Australian Institute of Export
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