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Globalisation & Multiculturalism: The Australian Experience

Globalisation & Multiculturalism: The Australian Experience. Griffith University Southbank 15 September, 2010 Dr Paul Williams. Guiding Questions. What is ‘Globalisation’? How did Australia become ‘globalised’? How has Australia economically integrated with the world?

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Globalisation & Multiculturalism: The Australian Experience

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  1. Globalisation &Multiculturalism:The Australian Experience Griffith University Southbank 15 September, 2010 Dr Paul Williams

  2. Guiding Questions • What is ‘Globalisation’? • How did Australia become ‘globalised’? • How has Australia economically integrated with the world? • What is multiculturalism? • How did Australia become ‘multicultural’? • What are Australia’s migration patterns?

  3. Part One Globalisation

  4. Defining ‘Globalisation’ • Defies easy definition Two common uses: • A “thing” in itself (an ‘outcome’) • An explanation of change (a ‘process’)

  5. Defining ‘Globalisation’ • “A process in which the economic, political & cultural separation between nations is breaking down & an international order is emerging” (Smith, Vromen & Cook 2006).

  6. Defining ‘Globalisation’ • “A process occurring in the economic, political & social realms which is the result of the dismantling of fixed boundaries around nations, cultures and economies” (Ryan et al. 1999). • What’s common in these definitions?

  7. Globalisation covers… • Economic (trade, transnational corporations [TNCs]) • Technological (communication, transport) • Media (diversity, reach) • Migratory (business, tourism, politics) • Cultural (export of ideas, beliefs, fashions) • Legal (international treaties, bodies)

  8. When did Globalisation begin? • Many assume it began in the 1980s & 1990s, but it’s as old as imperialism, trade & colonialism • i.e. a process begun hundreds of years ago!

  9. Imperialism / Colonialism • Late 1700s – early 1900s: apex • European demand for ‘foreign’ goods • Europe’s “scramble for colonies” • British, Dutch, Spanish, Portuguese, German, French colonise… • Africa, Asia, South America, Pacific • One cause of World War One (1914-1918)

  10. Technological Globalisation – connecting Australia to the world • Early 1800s - Steam ships • 1872 - Australia linked by telegraph line to Java (capital could be moved in matter of hours, not days or weeks) • 1900s – telephones • 1910s – cinema • 1920s – propeller aircraft • 1930s – radio • 1950s – television • 1960s – jet aircraft • 1970s – fax machines • 1990s – internet • 2000+ - 2.0 web communications

  11. Political & Cultural Globalisation for Australia • Open migration pre-1900 • 1914-1918 – WW1 (League of Nations) [failed] • 1939-1945 – WW2 (United Nations) • 1940s on – mass migration from Europe • 1960s on – flood of US popular culture • 1966-72 – end of White Australia Policy • 1970s – migration from Asia • 2000s – migration from Africa

  12. Some Global Economic Instruments • 1944 est. International Monetary Fund (IMF) & World Bank • 1947 - 1995: GATT – negotiator of lower tariffs; various ‘rounds’

  13. WTO • World Trade Organisation (WTO) – est. 1995 – successor to GATT • deals with rules of trade between nations • Goal - to help producers of goods & services, exporters & importers conduct their business • Australia plays by WTO rules

  14. WTO

  15. The problem with trade assistance…

  16. World Bank • Est. 1944 • Source of financial & technical assistance to developing countries • Comprised of over 180 member countries

  17. IMF • International Monetary Fund (IMF) est. 1944 • More than 180 members • Promotes international monetary cooperation & exchange stability • Provides temporary financial assistance to countries with balance of payments problems

  18. Dissent Both the World Bank and IMF – as symbols of globalisation & capitalism – are objects for dissent and protest

  19. Post-war global economic developments • 1950s – postwar reconstruction • 1960s – GATT moves to freer trade • 1971 – end of Bretton Woods agreement • Early 1970s – oil shocks (quadruple crude oil costs) • Ushers in new economic thinking in West (incl. Australia)

  20. Economic Globalisation for Australia • 1901–1970s - Australia’s trade & agriculture ‘protected’ i.e. high tariffs, subsidies, quotas • Early 1970s – oil shocks (quadruple crude oil costs – ‘stagflation’) • New economic problems require new economic thinking

  21. Economic Globalisation for Australia • 1979 – Margaret Thatcher (UK) • 1981 – Ronald Reagan (US) • 1983 – Hawke / Keating (Aust.) • End of ‘Keynesian’ economics • Rebirth of ‘supply-side’ economics

  22. Economic changes in Australia since 1980s… • In theory, smaller government (in practice, still a welfare state) • Lower income taxes • Lower public spending • Currency deregulation (1983) • Deregulated labour market • Reduction of tariffs • Increased foreign investment • Sale of public-owned businesses e.g. Qantas, Telstra, Commonwealth Bank • i.e. a ‘freer’ economy, BUT… • Some say GFC inevitable outcome of globalisation

  23. Australia & the Global Financial Crisis • Collapse of Lehmann Bros Sept. 08 • Grim forecasts for Australia • Rudd’s anti-neo-liberal essay • Rudd Government pre-empts stalled demand: • Dec 2008 – 1st ‘stimulus package’ = $10.4bn (lump sum payments to seniors, families; $ for auto industry, local councils)

  24. Australia & the Global Financial Crisis • Feb 09 – 2nd ‘stimulus package’ = $42bn (lump sum payments to most taxpayers up to $950; $26bn for infrastructure esp. schools (BER); $2.7bn for small business) • OECD says these packages lowered Australian unemployment by 2 % • Similar ‘bailouts’ in UK, US & Europe • Is this the end of neo-liberalism & a new era of ‘big government’?

  25. Globalisation creates winners & losers Winners include… • Highly skilled white-collar workers in finance & IT industries Losers include… • Farmers, lower skilled blue-collar workers in manufacturing industries

  26. Growth in Australian Finance Industry

  27. Winners & Losers…

  28. Winners & Losers

  29. Global winners…one analysis • Recent per capita Gross Domestic Product (GDP) of developing nations • China: 11.1 % p.a. • India: 9.7 % • Philippines: 7.5 % • Malaysia: 5.4 % • Turkey: 5.2 %

  30. Global losers…another analysis • North-South divide grows (gap between rich & poor nations) • 1960 - top 20 % in the world had income x 30 that of bottom 20 % • 1970 - 32 times • 1980 - 45 times • 1989 - 59 times • 2010 - 74 times (some dispute this gap)

  31. Global losers… • The richest 1 per cent of people in the world receive as much as the bottom 57 percent • i.e. < 50 million richest receive as much as 2.7 billion poor (Milanovic 2002, p.50)

  32. The ‘North-South Divide’(or ‘Development Gap’)

  33. The Global Income Gap Green = High; Yellow = Mid; Red = Low

  34. The Global Digital Divide

  35. The Energy Divide (GHGs & Climate Change challenges)

  36. Anti-globalisation movements • Protest at Group of Eight (G8) meetings • Anti-IMF; anti-World Bank • Pro-debt cancellation • Major protests at Madrid (1994); Seattle (N30 1999); Genoa (2001); Edinburgh (2005)

  37. Protests…

  38. Protests…

  39. Protests…

  40. Australia’s trade patterns… • 1788-1901: colonies trade with UK • 1901-1945: trade mostly with U.K • 1945 - present: mostly with US, Asia & EU

  41. Australia’s trade patterns… • Heavy reliance upon primary products • 1901 - 50: Agriculture • 1950s - present: Minerals • 1945 – early 1970s: high international demand for Australian products esp. wool, wheat, coal; iron ore • 1980s – on: reduction in tariffs

  42. Tariff reduction… • Until 2005: Cars - 15% tariff • From 2005: Cars - 10% • 2003-2013: TCF: 5 % to 17.5%

  43. Australia’s biggest trading partners… • EU (incl. UK) • USA • Japan • China & Hong Kong • Taiwan • South Korea • Singapore • Malaysia • India • Thailand

  44. What does Australia import? • Food – $5 bn • Fuels – $10 bn • Manufactured goods – $16 bn • Machinery & vehicles – $60 bn

  45. What does Australia export? • Food ($18 bn) • Fuels ($20 bn) • Manufactured goods ($11 bn) • Machinery & vehicles ($12 bn) • Trade deficits

  46. Australia’s biggest exports… • Coal • Tourism • Iron-ore • Education

  47. Foreign Investment in Australia • Today, about 30% foreign-owned equity in Australia • 1% of all firms (or 8,000) foreign-owned • Employ 750,000 people • Add $78 billion to economy • Esp. important to mining • Monitored by Foreign Investment Review Board (FIRB), over which Treasurer has veto power

  48. Foreign Investment…

  49. Current or coming Free Trade Agreements (FTAs) Australia's Free Trade Agreements • Singapore - Australia • Thailand - Australia • Australia - United States • Australia New Zealand • Australia-Chile

  50. Key foreign investors… • US (half of all foreign businesses) • UK (make more profits than US firms) • Also New Zealand, South Africa, Hong Kong, Germany & Japan

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