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Structural Adjustment Packages: Insights and Lessons from the Illawarra and Riverland Experiences

Professor Andrew Beer presents a comprehensive overview of structural adjustment packages, focusing on the Illawarra region and Riverland experience. This analysis highlights the challenges and opportunities associated with economic transitions in cities like Birmingham and Adelaide. Key insights include the impact of redundancy payments, labour market adjustments, and the critical role of public sector leadership in effectively managing transitions. The presentation discusses the importance of timely actions and the need for packages that address fundamental regional needs amidst capital mobility.

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Structural Adjustment Packages: Insights and Lessons from the Illawarra and Riverland Experiences

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Presentation Transcript

  1. Structural Adjustment Packages:Definitions, Opportunities and Lessons Professor Andrew BeerCentre for Housing, Urban and Regional PlanningUniversity of Adelaide

  2. What Do We Know, What Don’t We Know? • Structural adjustment in the Illawarra • A Tale of Two Cities • Personal and regional adjustment • The Riverland Experience • Lessons to be Learned

  3. The Illawarra

  4. Two Cities: Birmingham and Adelaide • MMAL Lonsdale April 2004, MG Rover May 2005 • Adelaide • Structural Adjustment Fund for SA (SAFSA) • Redundancy payments from MMAL • Worker assistance via JobsNetwork • Birmingham • Minimal redundancy payments • Range of government actions via MG Rover Taskforce & Advantage West Midlands

  5. Riverland Futures Taskforce • Riverland Futures Taskforce • $20m structural adjustment fund established by SA Government (Riverland Sustainable Futures Fund) • Now administered through RDA Committee • Limited take up, slow take up • And does it address the region’s fundamental needs in an era of capital mobility?

  6. Opportunities and Lessons • Labour market adjustment • Haynes notes labour assistance packages more effective in buoyant economic conditions • Redundancy payments can have perverse (?) impacts • Labour mobility is a critical issue – the Oswald thesis • Acquisition of formal qualifications key

  7. Opportunities and Lessons • Structural adjustment • Packages tied to the region affected, limit the spillover • Tension between supporting industries that will grow and the industries workers will move to • Time frame • Bailey et al note the importance of slowing the adjustment process • Significant action in advance of Rover collapse in Birmingham, on-going company support in SA • Public sector leadership in planning for and managing adjustment

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