What Should the Australian Government Do to Encourage the Growth and Development of Economy - Assignment Example

Name : xxxxxx Tutor : xxxxxxx Title : WHAT SHOULD THE AUSTRALIAN GOVERNMENT DO TO ENCOURAGE THE GROWTH AND DEVELOPMENT OF THE ECONOMY Institution : xxxxxxx @2009 What Should the Australian Government do to Encourage the Growth and Development of Economy. Introduction The Australian economy is currently facing a number of challenges. The current trends in the global economy have been of various implications on the Australian economy. The main challenge facing the Australian economy is majorly attributed to the implicated speedy aging of Australians. Yet another main challenge that stands to greatly affect the economy of Australia is impact of climate change and the emerging trends at which its arch rivals China and India are plunging in to a number of industries. The government has the mandate to come up with policies that can help empower its economy. The impact to which climate change stands to affect the economy is enormously big. The government needs to identify measures that can help in implementing ideal recommendations with regard to climate change. The adoption of ideal information and technology systems along side the provision of an ample environment for investment are among aspects that that government should uphold. This paper examines what the Australian government should do in an effort to boost the economy. This is in line with various recommendations stated in various committees and by individuals. The role of the government in the digitalization of the economy There is need for the economy to become flexible. This is an aspect that will in the long run make it productive and increase its potential to attain a very powerful growth margin that can effectively stand pressures of inflation. This point to the need for the government to focus on partnering with both the community and the industrial sector in addressing the emerging challenges that are facing the economy. The major industries that need to be effectively harnessed by the government in an effort to sustain the economy include education, water transport and health alongside banking. An article by Kylie Papparlado on the government’s future directives identifies the need for the government to foster the digitalization of its economy. According to Kylie, a digitalized economy is measured by a type of networking involving both the social and economic sectors. The adoption of ideal information and communication infrastructures is ideal for the reconstruction of any economy (Pappalardo 2009). Kylie in his article further identifies that the government needs to identify that it’s only the adoption of such infrastructure that will make it possible for the economy to stay ahead of the emerging trends of competition. With reference to the recommendations outlined by Kylie, the Australian government should thus play the lead role in enhancing and enabling the adoption of appropriate information and technology tools in an effort to digitalise the economy. The government needs to facilitate and at the same time foster the pace of innovation by identifying an ideal frame work. With the realization of the need to adopt an efficient broad band to successfully fit in to a world class economy, the well being of the Australian people greatly lies with adoption of a broad band that can work at a national level (Pappalardo 2009). The government should thus uphold the responsibility of building a National Broadband Network. Such a move according to the article by Kylie Pappalardo will make it possible for the various service consumers to enjoy a variety of services. To the many service providers in the booming service industry, the adoption of such an infrastructure will increase the number of applications and models to be adopted for effective service provision. The government needs to assist both the commercial and the community sector to fully implement such information and communication strategies. Hosting a forum at a national level to lay the emphasis of a national broad band network by the government is such an ideal strategy. With the need to foster the digitalization of its economy, the Australian government needs to foster an open and enabled access to information regarding the public sector. Such information should be made available to all members of the public in an effort to foster transparency and joint collaboration of the public in economic development (Pappalardo 2009). The government should therefore formulate regulatory practices that are in line with enabling the adoption of ideal information and communication tools at various levels of the economy. The role of the government in upholding climate change recommendations The impact of climate change is a factor that stands to greatly affect the economy. A number of industries are bound to be affected at various levels by the impact of the climate. According to the Wilkins review on climate change, the government needs to adopt measures that can greatly foster the making of the most informed forms of decisions within all sectors of the economy. This review goes ahead to outline what the government’s budgeting should foster. There are various recommendations that have been cited by this review in an effort to uphold safe practices that can fit in to the emerging trends in climate (Wong 2009). . The government needs to take the lead role in the adoption of these recommendations since a number of industries stand to be adversely affected if safe practices are not put in place. Climate change can have very negative implications on a number of climate sensitive industries especially the agricultural industry. Taking the lead role by the government in advocating for the implementation of safe practices with regard to climate change will help boost the survival of a number of industries. What the government needs do to towards improving the labour With regard to budgetary and expenditure strategies, the government needs to formulate policies that can foster a consolidated form of expenditure. For an overall haul of the economy, the government needs to put in place a good education system that can equip the people of Australia with the needed skills to handle emerging challenges in the economy. The work force in Australia should be the type that can foster the acquisition and implementation of the knowledge needed to fit in the new economic trends of the world (Stammer 2005). Owing to the fact that the service industry in Australia is the major source of revenue, there is need for the government to step in and help in addressing the problems related to inadequate labour supply. There is need for the government to identify strategies that help in equipping potential service providers with the most appropriate skills and technology. The problem of aging in Australia makes it relatively hard for emerging industries to make use of the available population in the provision of labour. The government should thus formulate policies that can either encourage more young people to train and acquires skills in various sectors of the economy or seek to recruit highly competent personnel from the international market. In fact, the move to seek for highly competent personnel from the international market is a very ideal gesture that will also boost the economic status of the sectors within which such personnel will be placed in to . The government should thus market its industries at the global level in an effort to broaden their marketability and at the same time seek to recruit the most ideal personnel (Australian Bureau of Statistics 2005). What the government should do towards the infrastructure With regard to the provision of the most appropriate infrastructure, the government needs to formulate ideal measures for service delivery. Such measures can entail the collocation of the various services in the country and enhancing signals related to consumer pricing. With regard to the road net work, the government needs to channel more funds towards the construction of the most ideal highways that can foster the ease of transport (Dunning 2002). . A well enabled transport network in Australia will make it possible to reduce the congestion in the traffic (Australia Treasury 2005).This is a measure will foster easy movement of both goods and services within the established time limits. The government needs to design an infrastructure network that will make it possible for the both goods and services to reach their destined markets on time in line with the demands of the available market (Mead 1995). How to foster investment by the government The economy at any one point is greatly influenced by the role of the government with regard to outlined regulations. There is need for the government to formulate regulations that are very conducive to investors in various sectors of the economy. Tough economic regulations in a country are an aspect that is feared for sending away potential investors (Wolfgang 2008). The government needs to encourage more investors in to the Australian industry by providing ideal policies and infrastructure. For the government to successfully encourage more investors in to its various industries there is need for the provision of incentives. Such incentives can include the moderation of the cost of natural resources especially water and energy. The high cost of energy in particular has been shown to be a major set back for the development of various industries. The pricing of such resources by the government should be such that can be successfully managed by the stake holders in the various industries (Wolfgang 2008). The role to be played by the government in marketing With regard to both the service and product provision industry, the government needs to step in and identify ideal market opportunities for its industries. This can be fostered through ideal marketing strategies both on the local and international market. The marketability of most of the agricultural produce from Australia is relatively high on both the international and home market. It is thus upon the government to ensure that such status are constantly maintained by predicting emerging trends with respect to the available market and consumer demands on behalf of the industries(Wolfgang 2007). Taking up this responsibility by the government on behalf of the industries will enable the various industries to concentrate more on quality production as marketability will presumably be assured (Dunning 2002). Conclusion The government of Australia needs to take up a number of responsibilities in an effort to help boost its economic development. The major income generators in Australia are currently the service provision industries. However other industries are equally picking up but at minimal capacities owing to a number of challenges. The market at any level is very competitive; most of the Australian industries operate at an international level where there are various rivals. The government needs to identify measures that can enhance the growth of its own economy by providing an ample environment for the investors in its economy. This can be achieved by championing for a number of measures. The current economic crunch is bound to negatively impact on various industries and there is need for the government to formulate ideal strategies that can measure against such negative implications. Bibliography Australia. Treasury 2005, Economic roundup: Summer 2004-05, The University of California: commonwealth Treasury of Australia. Australian Bureau of Statistics 2005, Year book, Australia, Issue 87, Aust. Bureau of Statistics, Melbourne. Dunning, H 2002, Regions, globalization, and the knowledge-based economy Oxford scholarship online, Oxford University Press, Oxford. Mead, M1995, The Australian economy: recent performance and future challenges Page 43 of Research study Volume 43 of CEDA research study, The University of California, CEDA. Pappalardo, K 2009, Australian Government‘s Future economic directives, viewed 13 September 2009, Stammer.D. 2005. The Australian Economy: Success and Further Challenges, viewed 13 September 2009, < http://cpd.org.au/article/australia-2005:-australian-economy:- success-and-further-challenges>. Wolfgang, A 2007, The Australian economy: a volume of readings. The University of Michigan, Cheshire. Wolfgang, A 2008, The Australian economy: a volume of readings, Cornell University, Cheshire. Wong 2009, The response of the Australian Government to recommendations of the strategic review of climate change programs viewed 13 September 2009, Read More