Owing to economic reforms in Australia people have benefited immensely. In addition to the economy growing stronger, the living standards of the people have also increased. Australia is regarded as a nation with its economy making headway at an alarming rate.
Records suggest that the growth rate has been approximately 4% over the last couple of years. It is worth mentioning here that during the period 2001 to 2002, there was economic stagnation throughout the globe. However, Australia still registered a growth of 3.8 percent.
Stable economic reforms in Australia ensured that the rate of inflation remains low along with low rates of interest. Due to this, confidence level in the investors soared high. The removal of restrictions has allowed several sectors of the economy to flourish in the country.
That around two decades ago, the industrial sector in the country was subject to tariff barriers, which were very high. The industries thriving during that period were self sufficient. Due to these factors, Australia offered minimal opportunities for growth. This in turn affected employment opportunities in the country.
In the year 2001, with regard to competitiveness, Australia occupied the fifth position globally. In the year 2000, it had occupied the eleventh position globally. Due to economic reforms in Australia, the rate of growth is consistent.
All this was not attained very easily. Australia had to open up its economy internationally. The nation did so by bringing about reduction in the tariff. There were few industries, which required a revamping and restructuring.
Changes were brought about in most sectors of the economy. Export of dairy products during the period 2001 to 2002, witnessed export of approximately 50 percent of the dairy products to other countries. With regard to the dairy industry, stringent regulation provided protection to the dairy industry. As a result inter regional trading dropped. Consequently, people had to shell out more money for the dairy products. One of the economic reforms in Australia comprised the eradication of barriers, which made export activities more accessible and they were able to face competition from the other markets.
The monopolists were exposed to competition, as a result the quality of services provided increased manifold and the cost of goods also fell. In Australia, the mantra of success consists in creating goods as well as products, as per the requirements of the consumers. Although, this was a bit tough because, choice of goods were consumer specific, yet this proved to be of immense help and the business firms became more competitive.
Economic reforms in Australia also took into account the labor market in the country. Owing to labor market reforms, changes have been effected for the better. Not only did the economic reforms in Australia pertaining to the labor market enhance the productivity of the workforce, but it was also accompanied with an increase in production and the standard of living of the common people. Hence we see that trade liberalization, adopting reform policies to suit the times have not only assisted Australia in moving ahead, it has also delivered a very satisfying economic model in the country.
Last Updated on : 26th June 2013