The Contemporary Australian Politics - Report Example

Insert Title Name: Institution Module: Instructor: 18th September, 2009 Background In contemporary Australian politics, truth and accuracy has constantly been a small priority for Leftists. With the current effects economic downturn, Labour has largely been responsible for economic reform in the country, which most policy makers have always recommended for the restoration of the economy. In the start of the 21st century Australia needed five key economic reforms to guarantee success in a fast globalising world economy (Lorimer 2002, p.45). The reforms were financial deregulation, fundamental taxation reform, breaking down of high tariff protection, privatisation of state-owned commercial bodies as well as a freer labour market. Svensson and Wood (2006, p.533) argues that this is thought to have been delayed by former regime which pursued their own interest and thus voted out of power in the November 2007 General election, ending 11 years of John Howard as the prime minister and head of government. Introduction. The Australian politics is executed within the structure of parliamentary democracy. Australia is both a federation and a constitutional monarchy, and its citizen vote for head of state and territory legislature based on Westminster tradition, moreover a bicameral parliament is believed to be a hybrid of Westminster custom with an exceptionally federalist feature of the Australia Senate (Dean 1994, p.67). The federal government is formed by a party or parties that have majority members in the House of Representatives. Rodney (2008, p.57) argues that in practice, the Labor Party now holds a majority in the House of Representatives. The Australian politics stretch to the executive, whereby all ministers are expected to defend the combined government decisions and any minister who appears to oppose the government interests is advised to resign from the office (Rodney 2002, p.23). The effect of economic recession that has greatly smacked major corporate giants around the world has not left Australia. The country has been affected drastically making its multinational corporations hard to thrive (Armstrong 1996, p.60). This has initiated friendship between policy makers and these organisations, since majority of the heads are allies to political leaders. This has made corporate organisations a poison chalice to Australian politics – this contrary to the expectation given that for effective implementation of economic reforms (to reinstate the dwindling economy) then big business and politics shouldn't mix (Timothy & Aynsley 2005, p.133). For restoration of the economy back to normal, economists have advised both the federal government and local government to get control of this corporate-dominated society, since the foreign corporate giants have not only dominated the banks and the financial system but also the economic market place, thus calling for friendly policies that could favour them. Some have now crossed the border into the Australian political arena, to political discussions to bribery of state officials and huge donations to the winning team (politicians), and yet they rarely belong there. The main players and their positions According to Doughney (1999, p.134) the key players in the economic reforms are many, they comprise of policy makers, whose main role is to make policies that are going to favour the country; contribute to economic growth. The federal government should also look at both the short term and long term effects of such policies to various stakeholders-be it the financial markets or foreign investors. Belcher (1992, p.101) emphasises that the finance officers especially in financial institutions or in the Treasury are supposed implement the policies made by the federal government to ensure efficiency in the economy. On the other hand, organisations like World Bank and International Monetary Fund, they appear to have influence on financial set up of a country to either qualify for monetary support or operation on the World Market. Other players has always been the political parties, for instance Australian Labor Party (ALP) which is the ruling party now has great influence on certain economic policies because of the majority of members in the House of Representatives (Rodney 2002, p.23). The political party sometimes pursues the interest of its members (urban working class and middle class people) which sometimes are opposed to economic growth and development of the country. Rodney (2008) affirms that the big corporations are also the key players in the economy, although they only have one goal and that is to maximise profit as well as shareholder value. The mainly recent case in point in the Australia came after the financial crisis where federal government used taxpayer money to fund executives' salaries and save banks. From this example, we can ask ourselves the question: whether they (corporations) are also involved in the Australian economy as well beside the pursuit of their own interest (maximization of profit only). Foreign countries are also the main players in the Australian economy. For example, it’s believed that the strength of the Australian economy now is directly related to China (economic giant). Although, some financial experts have argued that China tend to cooked, leading to rise in question of whether the Chinese growth is even accurately reported and whether it's real (Lorimer 2002, p. 13). Because, it’s believed that Chinese growth is being facilitated by a huge half-trillion-dollar stimulus plan of which 95% is incorporated to their state-owned enterprises, hence remaining with 5% on foreign business. Generally, Dagwell et al (2007) affirms that China trade with Australia appears to boost economy by creation of job markets. While financial analysts bestow good remarks to Australia for keeping it’s effective handling of economic policies during the global financial crisis which was branded the stimulus package (Belcher 1992, p.101). This essay argues that, this will have some stimulatory effect for a 6-12 months period, nevertheless it assumed that it’s not going to create enormous new jobs very soon and consumer spending sparks a rise in inflation hence the rise of interest rates. Moreover, according to White (2001, p.11) the high price of gold is evidence investors are apprehensive currencies that will devalue over time since governments have been printing money to bail out banks as well as industries. Economic reforms not being an issue of political conflict David (2002, p.60) avow that the economic reforms are supposed not to be identified with politics of a country. For Australia as federal government (new regime) should issue out policies that are very friendly and sound for restoration back to normal. The government leader (Kevin Rudd) declared from the start that he was to consider the Hawke-Keating economic reforms as a way of boosting the economic growth and be national head who can accomplish what is thought to be great project of economic modernisation for Australia (Louise 2009). This can only be realised when leaders (legislatures) focus on issues of national interest as compared to political interest of their parties. It is a remarkably gallant allegation for a Prime Minister who is believed to preside over the successful kneecapping of labour market modernisation of the country in the running of his government's Fair Work Act, which was implemented in early July, 2009. The contemporary era of deregulated Australian labour markets as well as economic reforms commenced some years back. Thus why, Bryan (2001) argues that the issue of economic reforms cannot be said to be politically subjective since every federal government is believed to pursue policy that will promote economic growth and development (Timothy & Aynsley 2005, p.135). For case in point, the Prime Minister's goal has all along been restoration of management's right of economists to administer and to deal frankly with economic issues of the country. Besides, the hardships the federal government may encounter, it is believed that no way is politics going to lead the economic reforms in a country (Grieg 2002, p.26). For example, there have been times where other important influences at implementation level of policy: globalisation of Corporations; the dismantling of tariff walls and the floating of the exchange rate by the Australian federal government has boosted the economy. Introduction of sound policies to Australian economy that was initially opposed by the government like enterprise bargaining. The beginning of individual workplace accords by the Court government in Western Australia as well as Australian workplace accords by the Howard government has boosted financial stability of many people in Australia, thus reducing dependency on federal and local governments. Economic issue in Australia has been handled soberly by policy makers (CSU, 2004). Some sections have been adjusted to make an excellent background for working, for instance, Gillard's legislation has fashioned avenues that practiced manipulation resolution through Fair Work Australia on good faith bargaining matters. Moreover, experts believe that the legislation heralds a basic change in the way industrial relations have been practised over in the country. Economic reforms being an issue a site of political conflict Australian federal government has been accused sometimes on creating inefficiency in economic reforms; this is viewed to the politically difficult task of deregulating interest rates, by removing all interest-rate ceilings on bank deposits, given that various political parties (coalition partners) have different interest (Butler 2007, p.1320). For example for the duration of the Frazer government, the blueprint in favor of financial reform appeared from the Campbell analysis, through the opening of a tender scheme for the retailing of Treasury notes and Treasury bonds. Other instance was in Hawke government floated the dollar, admitted foreign banks-it is believed that the floating of the dollar was driven by Bob Hawke who was Prime Minister and the then Governor of the Reserve Bank, Bob Johnstone. The current federal government has initiated political influence on certain economic policy to which has been alleged to be associated with party interests, for instance Rudd government’s move toward labour (economic element), has been criticised by Steve Knott, the managing director of the Australian Mining and Metals Association, that wraps the industry which is assumed to be the origin of modernisation of the Australian labour marketplace, and portrays the current regime's industrial relations legislation as the major increase within union power ever since Federation (Lavelle 2001, p.33). It is contemplation that Rudd's advance hardly proposes the safest constituents in which to place the enormous project of the economic modernisation of Australia. Steve Knott affirms that if Rudd was serious, he wouldn't have produced a 652-page act to reregulate the labor market which is believed to be economic indicators. This essay argues that after a number of false starts basic taxation reform (an economic element), related to the preamble of a broad based goods as well as service tax, that was lastly achieved in the Howard regime during 2000 was politically influenced. On other instances, like the Hawke government, with Paul Keating as treasurer, was accountable for mainly dismantling Australia's system of protective tariffs because of its political authority (Bramble 2001, p.75). It was also because of political power that visualised the Keating governments privatise Qantas and commenced the privatisation of the Commonwealth Bank as the Howard government privatised Telstra. Colliers & Kevin (2001, p.34) emphasises that each federal government that gets hold of power has its own pursuits or approach towards economic reforms. The Rudd regime has not only reversed the Howard's industrial relations reform, but has also enforced a more level of regulation, taking workplace relations structure some years back. Rodney (2008) affirms that predictably, Labor opposed all of the Coalition's industrial relations changes-this is a clear show that each federal government or party has it own political interest on issues concerning economic reforms. Timothy & Aynsley (2005) argues that Labor party pessimism in opposition was not restricted to the major reforms stated above. It also tried to frustrate the fiscal consolidation practice that was initiated in Peter Costello's foremost budget during 1996. That budget, was voted to be the best also most audacious in a generation which forced real cutback in federal government expenditure. Opportunistically, Labor resisted most of these assessments. On the other hand, Lorimer (2002) asserts that this was a fiscal consolidation progression, which entirely eliminated net Commonwealth arrears as well as produced a series of budget surpluses, which up to now has proved significant toward Australia evasion of the nastiest effects of the global economic plunge. Conclusion It is appealing for a political leader such as Rudd to portray consideration to his party's virtues as well as ignore those of other parties. Recently, however, critics of the Prime Minister have affirmed that he conceded political dishonesty to new heights, when he instigated Paul Kelly's book ‘‘The March of Patriots.’’ This essay argues that in one fashion or another people are completely political warriors, but have a superior responsibility to the national interest. That responsibility obtains in opposition and in government (Timothy & Aynsley, 2005). There have been rare instances where Australian politics has had a monopoly of either virtue or merit on issues of country’s interest like economic reforms. Economists have warned of another impending implosion of the global economy References Armstrong, M. (1996). Aborigines: Problems of race and class: Class and class conflict In Australia. Melbourne: Longman, pp. 58-73. Belcher, T. (1992). ‘‘The Australian Economy in the 1980s’’, Socialist Review (Melbourne), 5, Autumn, pp. 93-125. Bramble, T. (2001). Solidarity versus sectionalism: The social tariff debate, Journal of Australian Political Economy, 48, pp. 73-114. Butler, C. (2007). Australia Politics: The Politics of Fear and Neglect. Melbourne: Elsevier, p.1320. Bryan, D. (2001). Global Accumulation and Accounting for National Economic Identity, Analysis of fundamental political economics, 33 (1). Campbell Sharman University, (2000). Australian Government and Politics Database. Western Australia: Campbell Sharman University press. Collyer, F. & Kevin, W. (2001). Corporate Control of Healthcare in Australia, Discussion Paper, 42, Canberra, pp. 34-37. David, C. (2002). Contemporary Issues in Australian politics. University of Cambridge Press: Melbourne, p.183 Dagwell, R., Wines, G, & Lambert, C. (2007). Corporate Accounting in Australia, 4th Edition. Sydney: UNSW Press. Dean, J., (1994). Power Politics: Australia’s Party System. Sydney: Allen & Unwin, p.67. Doughney, J.R. (1999). Marxist theories of economic crisis and the Australian evidence, Research in Political Economy, 17, pp. 133-203. Doughney, J.R. (2002). The Improbability of Stable Capitalism: Working paper series, 13/2002, Melbourne. Grieg, A. (2002). The struggle for outwork reform in the Australian clothing industry, Periodical of Australian political economy, 49, June, pp. 5-33. Lavelle, A. (2001). Native title and recent Australian mineral exploration trends, Journal Of Australian political economy, 47, June, pp. 27-50. Louise, C. (2009). The Politics of Human Rights in Australia. Sydney: Sydney University Press. Lavelle, A. (2002). Foreign investment in Australia and recent trade union responses, Journal of Australian political economy, 49, June, pp. 87-113. Lorimer, D. (1997). Why socialists oppose Australian nationalism', Socialist Worker, (3), August-September, pp. 7-14. Lorimer, D. (2002). Imperialism in the 21st century: War, neo-liberalism & globalisation, Chippendale, p.34-56. Rodney, S. (2002). Political parties in contemporary Australian fiction. Queensland: John Wiley & Sons, P.23. Rodney, S., (2008). Australian Political Culture. French Forest NSW: Longman, pp.57. Svensson, G & Wood, G (2006). Sustainable Components of Leadership Effectiveness, Journal of Management Development, Vol. 25, No. 6, pp.522-534. Timothy, D. & Aynsley, K, (2005). Economic Politics & Policy Making in Australia. Melbourne: Macmillan, pp.130-135. White, K. (2001). Capitalist Monopolisation & State Administrative Control, Annual Review of Social Sciences, 10, pp. 5-18. White, K. (2002). Materialist Approach: Toward the sociology of health in Australia, London, Sage, pp. 79-103. Read More

The main players and their positions According to Doughney (1999, p.134) the key players in the economic reforms are many, they comprise of policy makers, whose main role is to make policies that are going to favour the country; contribute to economic growth. The federal government should also look at both the short term and long term effects of such policies to various stakeholders-be it the financial markets or foreign investors. Belcher (1992, p.101) emphasises that the finance officers especially in financial institutions or in the Treasury are supposed implement the policies made by the federal government to ensure efficiency in the economy.

On the other hand, organisations like World Bank and International Monetary Fund, they appear to have influence on financial set up of a country to either qualify for monetary support or operation on the World Market. Other players has always been the political parties, for instance Australian Labor Party (ALP) which is the ruling party now has great influence on certain economic policies because of the majority of members in the House of Representatives (Rodney 2002, p.23). The political party sometimes pursues the interest of its members (urban working class and middle class people) which sometimes are opposed to economic growth and development of the country.

Rodney (2008) affirms that the big corporations are also the key players in the economy, although they only have one goal and that is to maximise profit as well as shareholder value. The mainly recent case in point in the Australia came after the financial crisis where federal government used taxpayer money to fund executives' salaries and save banks. From this example, we can ask ourselves the question: whether they (corporations) are also involved in the Australian economy as well beside the pursuit of their own interest (maximization of profit only).

Foreign countries are also the main players in the Australian economy. For example, it’s believed that the strength of the Australian economy now is directly related to China (economic giant). Although, some financial experts have argued that China tend to cooked, leading to rise in question of whether the Chinese growth is even accurately reported and whether it's real (Lorimer 2002, p. 13). Because, it’s believed that Chinese growth is being facilitated by a huge half-trillion-dollar stimulus plan of which 95% is incorporated to their state-owned enterprises, hence remaining with 5% on foreign business.

Generally, Dagwell et al (2007) affirms that China trade with Australia appears to boost economy by creation of job markets. While financial analysts bestow good remarks to Australia for keeping it’s effective handling of economic policies during the global financial crisis which was branded the stimulus package (Belcher 1992, p.101). This essay argues that, this will have some stimulatory effect for a 6-12 months period, nevertheless it assumed that it’s not going to create enormous new jobs very soon and consumer spending sparks a rise in inflation hence the rise of interest rates.

Moreover, according to White (2001, p.11) the high price of gold is evidence investors are apprehensive currencies that will devalue over time since governments have been printing money to bail out banks as well as industries. Economic reforms not being an issue of political conflict David (2002, p.60) avow that the economic reforms are supposed not to be identified with politics of a country. For Australia as federal government (new regime) should issue out policies that are very friendly and sound for restoration back to normal.

The government leader (Kevin Rudd) declared from the start that he was to consider the Hawke-Keating economic reforms as a way of boosting the economic growth and be national head who can accomplish what is thought to be great project of economic modernisation for Australia (Louise 2009). This can only be realised when leaders (legislatures) focus on issues of national interest as compared to political interest of their parties.

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