How Successful Was Industrialization in Australia over the Period 1950 to 1973 - Essay Example

NAME : XXXXXXXXXX TUTOR : XXXXXXXXXX TITLE : XXXXXXXXXXX COURSE : XXXXXXXXXX INSTITUTION : XXXXXXXXXX @2010 Introduction Australia took advantage of the boom in the world economy in the 1950s and 1960s. After Second World War, Australia entered a period of sustained expansion, with all regions experiencing growth. The growth was due to increasing availability of raw materials after wartime shortages, large-scale immigration, technical and scientific development and the capital inflow. 1Government involvement in the running of the economy became more prominent with new policies aiming at particular goals like full employment growth and economic progress. Government regional development policies supported the growth of economic progress. After 1945, it was decided that state governments should support decentralization by offering motivation to certain industries. Moreover, the government came up with regional development policies which influenced the location of industries2. In addition, the Commonwealth helped in the decentralization process by allocating defense activities and encouraging refugees and overseas firms to establish themselves in provincial regions. The manufacturing sector is seen as a key element in the process of national development and growth, the protection of the pre-war tariff was continued, and the import licensing restrictions and controls retained until 1960. These measures definitely allowed the domestic manufacturing sector to capture an enlarged share of the local market, obtain economies of scale and to increase their productivity to more global competitive heights. This environment made it possible for the manufacturing sector to make transitions to peacetime activities without unnecessary difficulty3. In the early 1950s, labor and material shortages began to reduce and bottlenecks diminish. Large-scale immigration, private capital investment and government activities, especially in infrastructure, set the tone for the remainder of the period and allowed rapid growth. The manufacturing’s allocation of gross domestic product and employment had attained historic heights while the Australia’s base could declare to have attained maturity by the year 1960. In this era, major structural change took place within the manufacturing sector itself. In the conventional, additional labor intensive industries such as food, clothing, sawmilling, and wood products, the comparative share of employment and production decreased whereas additional capital intensive groups such as chemicals, electrical goods, and industrial metals, machines and conveyances progressively augmented their shares4. The growth of these industries was coupled to their rising relative benefit within the sector, and to the increase of the local market owing to increasing incomes, high rates of population growth and the unfulfilled demands of the preceding period for consumer goods. There were extensive structural changes that occurred during this era. However, when Australia’s growth performance is contrasted with that of other developed countries over a similar duration frame, Australia’s record was not so inspiring, especially in the year 1960s.  By 1950, the rapid growth supported by the local market had ended although manufacturing exports did increase; the rate of growth was low and compared badly with other developed countries. Demands for steel, glass, plastic and rubber increased due to the developing maturity of the motor vehicle industry. One person in sixteen in the labor force was employed in the production, delivery or servicing sector of this industry and the first local vehicles had been manufactured by 1960.  In the 1950s, the petroleum refining industry also developed to prominence which made it possible to service the requirements of both motorists and industries. New petrochemical compounds using advanced technology were developed to convert the by-product of oil refining process to a range of petrochemicals and man-made materials during the 1960s.  This essential chemicals industry allowed local production of inputs for the additional development of the plastic, man-made fibers and rubber industries and the chemicals, fertilizer, paint, adhesive and sealant factories. The increasing demand for other consumer and producer goods during this era created a challenge for the development of our electronics industries5. The large-scale migration of people into Australia after World War II has contributed greatly to the Australian society, culture and growth. At this time, there was desperate shortage of labor in Australia and therefore the immigrants provided labor, skills and capital into the economy of Australia. They contributed to productive diversity through the knowledge of global business markets and started new businesses. Large-scale migration into Australia meant an increase in population and hence the need for business expansion to produce extra goods and services and government expansion in services such as health, education and welfare. They spend more on food, housing and leisure activities contributing to increase in GNP. The migrants also generated surpluses for government as they paid taxes just like other Australians. In fact, research studies shows that migrants contribute more in taxes than they consume6. The Australian economy had been established on the basis of a good Climate in large parts, the suitability of land for European pastrolism and agriculture, and plenty of mineral wealth, the simplicity with which these resources were allocated to the indigenous population. Although economic growth depended a lot on the government Commissariat as provider of goods, money and foreign exchange, person rights in property and work were acknowledged, and private markets for both started to function. Many immigrants acquired skills required in the new settlements as laborers, craftsmen, clerks and tradesmen7. The notable gold discoveries in Central Victoria brought improved complexity to the economic growth. The news flashed an immediate surge of gold seekers into the colony and this was soon reinforced by a flood of overseas migrants. Later gold replaced wool as Australia’s most precious export. The demand for housing accelerated as the children of gold generation grew up and established their own households. With pastoral expansion and public investment also nearing their peaks, the colony experienced an approximate boom which added to the unevenness already being caused by falling export prices and rising overseas debt8. The boom came to a closing stage with the general collapse of building businesses, mortgage banks and other financial organizations and the end of much of the banking system. With state governments, the commonwealth increased spending on education drastically and effectively entering the field for the first time. Admission to secondary education was expanded with the desertion of fees in public schools while federal finance secured a huge expansion of university places. The Australian government interceded in numerous markets for farm products.  This involved removing ban on key raw materials exports, direct tax on farm products and providing subsidies and protection for agricultural industries9.  This led to considerable increase in the share of exports in the gross value of farm production. Farmers branched out of traditional wheat and sheep projects to beef, cotton, sugar, diary products, wine and rapeseed leading to increased growth in agricultural export of a range of farm products.  The Australian government came up with policy measures, such as fertilizer subsidies, income tax incentives, rural credit measures, agricultural research and extension subsidies and public investment in land and water development and rural infrastructure, leading to pooling of local and export returns10.   Manufacturing and construction industries expanded to cater for immediate needs of the growing populations, which mainly concentrated highly in the main urban centers. Pastoralism and mining provided opportunities for profits and hence attracted substantial amounts of British capital. Growth generally was maintained by enormous government outlays for transport, communication and city roads which also depended a lot on British finance. As the economy grew, large-scale immigration became vital to meet the high demand for workers, particularly after the end of criminal transportation11. As settlers were coming mostly from the United Kingdom and bringing skills, the costs of immigration was sponsored by the colonial governments since the economy was growing enormously. All this gave root for the founding of free colonial communities. The British authorities also promoted private project by the extensive assignment of criminals to private employers and easy access to land from the year 1820s. Farming was established on the basis of land grants to officials and liberated convicts and restricted freedoms were allowed to convicts to supply a range of goods and services. Transport expenses surpassed the price of goods in the country of origin, and often by a considerable margin. In the early 19th century the United Kingdom provided leadership in tumbling tariffs and many other European countries. During the first century transport cost dropped significantly. Boom was encouraged by industrial transformation and by policies changes in industrial countries. Industrial change was especially evident with the introduction of electricity and its purpose, and communication such as telephone, telegraph, and transport. There was steep decline in the costs of moving freights through the introduction of railroad. When steamships were introduced there were significant plunge in the costs of ocean shipping12.              The introduction of television greatly impacted on the existing modes of entertainment since people were encouraged by the media to remain at home and watch popular programs instead of going to the cinemas. Cinemas were supposed to look for new means to bring back its former reputation that developed innovative and enhanced special features no the big screen. By 1958, drive- in cinema became a famous way to watch movies with young families and with twenty four outlets across Australia13. Radio was the most famous mode of entertainment before television and hence it had to change its focus towards music, sports and news. The television was viewed as the best mode of broadcasting quiz shows and dramas. Radio stations were therefore forced to change their programming around television. This growth brought about the introduction of portable radios that could be carried around or be fixed into a car.  By 1960 music was differentiated by the development of a new expertise and a new genre and music became even more suitable and enjoyable for people to listen. Prominent people in sports like Dawn Fraser, Murray Rose brought pride to Australians who were watching television from home or stadium. The Olympic Games created a sense of national pride and another stepping stone towards the formation of Australia’s national identity these is because citizens never viewed Australia as British outpost but as an individual nation with sporting heroes.  The growing wealth of common citizens prompted on the construction of many sporting facilities which had enormous attendance. Popular culture covered all areas of recreation life.  In the course of music, television and film, America pop culture has drastically prejudiced fashion and lifestyle factors of this decade. The post-war generation believed they could attain and enjoy prosperity which was unknown to earlier generations although the hardships of depression and war were in the past14.  By the end of the decade unemployment remained at a low record below 25% and hence the standard of living for a majority of Australians improved drastically. This unparalleled phase of success was also shown by a major increase in the birth rate. The new generation was named as baby boomers showing that their increased income allowed them to assist larger sprawling families’ as well as proving that the traditional values of the family were still strong in the mentality of the post war generation. Rapid housing boom across the whole nation was experienced due to enormous boost in population and with combined economic prosperity. Hence, the dream of owning a house on a quarter acre block was becoming a reality to many Australians. This dream of a quarter acre block is an example of strong conservative precedence that many post-war generation Australians had faith in15. Another Australian identity was the introduction of the idea of consumerism, that having more household products brings happiness. This reinforced the nature of new Australian identity of a culture that enjoyed the good life, although the mainstream Australian society in the 1950s was conventional and conservative. It is thus not surprisingly that after the incident of war, family life and family values were all essential. Transformation was deliberate and anything that defied the better life or the accepted values of the society was viewed with uncertainties. On the other hand, this was a time when people in leadership were never questioned and hence people alleged that they knew what was best for the community. Change in direction of fashion was marked in Australia in 1950s which unlike the earlier decades, fashion in Australia was old-fashioned, restrained formal, mimicking the conservative’s attitudes of the 20s-30s and 40s. However, clothing still remained old-fashioned compared to today’s standards as women showing too much flesh was considered unacceptable. Despite social obstacles, the value of fashion in the 50s in Australia flourished as the country entered into a period of success. These led to families spending more on fashion. In the 1950s, it was the teenagers who were a driving force behind fashion as they developed their own styles which is often the style being heavily prejudiced by the respective styles pop culture icons16. Conclusion Australia was able to take advantage of the boom world economy in the 1950s and 1960s through the increased availability of raw materials after wartime shortages, large-scale immigration, technical and scientific development, the capital inflow and government involvement in the running of the economy. In this period, Australia generally enjoyed restrained price increases and unemployment, and solid economic development. In the second half of 1960s, economic development was notably more stable than in the first half. On average, this produced higher economic development and Gross Domestic Product growth per capita, increase in the mineral trade, improved manufacturing productivity, improved living standards and a high population growth rate. The ongoing structural reforms have resulted to a sound macro-policy framework and the rate of technological development has been, and continues to be astonishing. Globalization has brought tremendous benefits and there are better explanations for expecting this development to continue. The public is in a better position than they were in during post-war era. There was no room for gratification, due to higher demand for hip op appliances. Progress was inverted and recovery from that setback took many decades. There have been many problems to this outline over the years, all of which have ultimately established its fundamental force.     References Anderson, Kym. "Australia in the International Economy." In Reshaping Australia's Economy: Growth with Equity and Sustainability, edited by John Nieuwenhuysen, Peter Lloyd and Margaret Mead. Cambridge: Cambridge University Press, 2001: 33-39. 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The Economic Record 80, no. 250 (2004): 330-45. Maddison, Angus. The World Economy: Historical Statistics. Paris: OECD, 2003:22-35. Read More