Module Four: Globalisation
TOPIC 4.4: What is Australia’s Relationship with Asia?
Australia in the Asian Century: The 2012 White Paper and beyond
In broad terms, Australian policy can be divided into domestic and foreign policy. Unless you are directly involved in foreign affairs, then your interest in foreign policy will be in understanding what is involved and in having an awareness of the policy settings in order to align domestic policy so that it is not acting against the national interest internationally, and in managing your affairs in compliance with the international obligations as in the Great Barrier Reef example, cited earlier. Australia’s foreign policy is discussed in the following topic.
To this point, the discussion has been about global influences but Australia is located in the Asia Pacific and increasing attention is being paid to the requirement for us to focus more upon our neighbourhood than upon traditional partners. Pundits suggest that the future belongs to Asia and we could benefit strategically from an alignment with Asia. Improved governance in Asian countries has enabled more direct involvement and investment in those countries, so Australia’s picture of being a platform for business to launch itself into Asia (a neutral policy) may need revision, and closer ties to the region through direct investment, amenable foreign policy, and aid, may ensure long term benefit (an engagement policy). Public servants can play a vital role in this transformation but will also need to understand the complex fabric, which makes up this part of the world, as discussed in the next topic.
The White Paper, ‘Australia in the Asian Century’ released in the last year of the Gillard Labor government[1], is both a blueprint on what to do and a call for action, coupled with the prediction that ‘the doing nothing policy option’ will result in Australia being left behind economically and isolated. The arrival of the Abbott Coalition government in 2013 seems to have signalled a change in Commonwealth focus with the White Paper disappearing from the Department of Foreign Affairs and Trade website (Conley Taylor, 2023)[2]. This shift in thinking hardened under the Morrison prime ministership who ‘saw Australia as located in a region at the “epicentre of strategic competition”, with territorial disputes, unprecedented military build-up, foreign interference, cyberattacks, disinformation, breakdown of trade rules and increasing use of economic coercion’ (Conley Taylor, 2023). The return of a Labor government after a decade may signal a repositioning of both the rhetoric and the policy in terms of engagement with Asia, however with there is no new White Paper to articulate a comprehensive strategic position of the new government. Some sense of the new Asia engagement approach is partially signalled through Invested: Australia’s Southeast Asia Economic Strategy to 2040 (DFAT, 2022),[3] which might indicate a focus on Asia trade closer to home. What is clear is that the new Australian government is continuing to prosecute simultaneous global, multi-lateral and multi-regional engagement strategies for defence, trade, environment and human rights outcomes as evidenced by the DFAT home page, https://www.dfat.gov.au.
The following extracts from the 2012 White Paper provide some insights into the shift in thinking that will still be required more than a decade on.
“Asia’s rise is changing the world. This is a defining feature of the 21st century—the Asian century. These developments have profound implications for people everywhere.
“Asia’s extraordinary ascent has already changed the Australian economy, society and strategic environment. The scale and pace of the change still to come mean Australia is entering a truly transformative period in our history.” (p1)
[…]
“Beyond economic gains, there are many valuable opportunities for building stronger relationships across the region, including through closer educational, cultural and people-to-people links.
“Our nation also has the strength that comes from a long history of engagement with countries in Asia. Australia’s relationships in our region are strong and robust, including with Asian nations like China, Japan, India, Indonesia and the Republic of Korea (South Korea). But in this Asian century we must enter a new phase of deeper and broader engagement.” (p1)
[…]
“But Australia’s success will be based on choice, not chance. In order to succeed, we must sustain the policy settings and pathways that have served us well. We need to reinforce our strong social foundations, including our national institutions, our cultural diversity and our outward-looking society.
“We will need to do more than this—we all need to respond to the rapid changes occurring in our region.
“Australians need to act in five key areas in order to succeed in the Asian century. First, irrespective of how the Asian century evolves, Australia’s prosperity will come from building on our strengths. We need to reinforce the foundations of our fair society and our prosperous, open and resilient economy at home. We need to build on areas where we already perform well, in order to extend our comparative advantage. Critical to this will be ongoing reform and investment across the five pillars of productivity—skills and education, innovation, infrastructure, tax reform and regulatory reform.
“Second, as a nation we must do even more to develop the capabilities that will help Australia succeed. Our greatest responsibility is to invest in our people through skills and education to drive Australia’s productivity performance and ensure that all Australians can participate and contribute. Capabilities that are particularly important for the Asian century include job-specific skills, scientific and technical excellence, adaptability and resilience. Using creativity and design-based thinking to solve complex problems is a distinctive Australian strength that can help to meet the emerging challenges of this century. As a nation we also need to broaden and deepen our understanding of Asian cultures and languages, to become more Asia literate. These capabilities are needed to build stronger connections and partnerships across the region.
“Third, Australia’s commercial success in the region requires that highly innovative, competitive Australian firms and institutions develop collaborative relationships with others in the region. Australian firms need new business models and new mindsets to
operate and connect with Asian markets. We will work to make the region more open and integrated, encouraging trade, investment and partnerships. Firms will adapt their business models to seize the opportunities created in our region.
“Fourth, Australia’s future is irrevocably tied to the stability and sustainable security of our diverse region. Australia has much to offer through cooperation with other nations to support sustainable security in the region. We will work to build trust andcooperation, bilaterally and through existing regional mechanisms. We will continue to support a greater role for Asian countries in a rules-based regional and global order. Australia’s alliance with the United States and a strong US presence in Asia will support regional stability, as will China’s full participation in regional developments.
“Fifth, we need to strengthen Australia’s deep and broad relationships across the region at every level. These links are social and cultural as much as they are political and economic. Improving people-to-people links can unlock large economic and social gains. While the Australian Government plays a leading role in strengthening and building relationships with partners in the region—with more intensive diplomacy across Asia—others across a broad spectrum spanning business, unions, community groups and educational and cultural institutions also play an important role. Stronger relationships will lead to more Australians having a deeper understanding of what is happening in Asia and being able to access the benefits of growth in our region. In turn, more of our neighbours in the region will know us better than they do today.
“Success in the Asian century requires a whole-of-Australia effort, with businesses, unions, communities and governments being partners in a transformation as profound as any that have defined Australia throughout our history.
“It is in the interests of all Australians—and therefore in the national interest—to develop the capabilities and connections that Australia will need, so that we can contribute to, and learn from, the region, and take full advantage of these opportunities. (p2-3)”
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“This White Paper provides a roadmap for the whole of Australia—governments, business, unions, and the broader community—in this next phase. Our goal is to secure Australia as a more prosperous and resilient nation that is fully part of our region and open to the world. (p78)”
Deeper Learning
(25 mins)
Conley Tyler, M. (2023). Asian Century White Paper: A decade on. The Interpreter.
Ken Henry in 2016 noted that ‘Australian policy makers have ignored the White Paper’, while Melissa Conley Tyler in her 2023 retrospective on the papers fate under the Coalition Government declared that the White Paper ‘dared not speak its name’. She also supports Henry’s view that the paper was more about developing Australia’s domestic capabilities than they were about regional engagement with Asia.
- Why do you think policy makers are reluctant to take up the capability building recommendations in the White Paper?
- How would you make the case to the current Commonwealth Government to take up the challenges?
- Department of the Prime Minister and Cabinet (Australia). (2012). Australia in the Asian century: white paper. Australian Government. https://apo.org.au/node/31647 ↵
- Conley Tyler, M. (2023). Asian Century White Paper: A decade on. The Interpreter. https://www.lowyinstitute.org/the-interpreter/asian-century-white-paper-decade ↵
- DFAT. (2022) Invested: Australia’s Southeast Asia Economic Strategy to 2040. Department of Foreign Affairs and Trade. Australian Government. https://www.dfat.gov.au/sites/default/files/invested-southeast-asia-economic-strategy-2040.pdf. ↵