The economy of Australia has fared very well in the last twenty years and registered a growth rate of approximately 4%. Several structural reforms in Australia bookmarked the economy. Structural reform in Australia comprised issues related to the following.
Areas covered and the impacts caused as a result of the structural reform in Australia:
Liberalization as well as deregulation of the financial sector of the economy.
Deductions in tariffs
Exchange controls were lifted or floated
Labor migration was diversified as well as expanded
Reform in taxes
Reform in the labor market and deregulation
Reform in governance
Policy pertaining to national competition was propounded.
Reform pertaining to financial supervision was brought about.
Fiscal as well as monetary policies of a medium term model were introduced.
Structural reform in Australia has determined the manner in which the Australian economy has functioned over the years.
Benefits of Structural reform in Australia:
With the implementation of the structural reform in Australia, the economy benefited likewise:
Economy opened up to overseas economies
The country developed more immunity to internal as well as external “shocks” in the economy. Due to structural reform in Australia, the country was better equipped to withstand adverse situations. A prominent example being Asian Financial Crisis.
The structural reform in Australia has ensured that the country makes considerable headway in the productivity. It also sees to it that the standards of living of the common people gets enhanced.
The implementation of structural reform in Australia was not an easy task. The entire reform process was encircled by opposition as well as controversies. However, it did get implemented by the credible organizations in the country. Needless to say, that the country is always in a process of reform, be it in the financial sector, be it trade reform or any other form of reform.
It is constantly upgrading itself to meet the dynamic economic environment. Statistics (2003) revealed by OECD or Organization for Economic Cooperation and Development suggested that owing to the country’s balanced approach to reform the country, Australia has been regarded as one of the best performing nations in the OECD family.
Last Updated on : 26th June 2013