Essay Title: 

Article Critique

March 23, 2016 | Author: | Posted in tourism

Published on 31 July 2006

HYPERLINK “http /www .oecd .org /document /28 /0 ,2340 ,en_2649_34569__1_1_1_1 ,0 0 .html http /www .oecd .org /document /28 /0 ,2340 ,en_2649_34569__1_1_1_1 ,00 .html

Economic Survey of Australia 2006

Economic Survey of Australia 2006 : The short-term challenge : riding the commodities rollercoaster

Sometimes referred to as the lucky ‘ country , Australia has been riding the global boom in commodities , benefiting increasingly from its proximity to Asia . But Australia has also made its own luck ‘ through a series of structural reforms and the introduction of a robust [banner_entry_middle]

macroeconomic framework which have bolstered resilience . This is illustrated by its macroeconomic stability in the face of a string of recent shocks , in stark contrast to the macroeconomic chaos which followed the commodities boom of the early 1970s . A further test of this new resilience will occur at some point when the terms of trade decline – this underlines the need to continue prudent macroeconomic policies

Reforms have also boosted productivity , with living standards steadily catching up with the best performing countries since the early 1990s The long-term challenge is to sustain this performance , particularly in the face of population ageing , which will require progress on a number of fronts

Improving fiscal relations across levels of government . Many public services are funded jointly by the central government and the states Clarifying roles and responsibilities would raise public sector efficiency . Particularly in the areas of hospital services and old-age care , fragmentation in decision making leads to cost and blame-shifting Addressing these problems has been placed on the agenda

Boosting productivity growth . Following a surge in the second half of the 1990s , productivity growth has reverted to its long-run average Infrastructure bottlenecks have held back export growth in some cases More importantly , there is still further business in the reform of network industries and inefficient use of water remains a major concern The slow pace in overcoming market segmentation and instilling greater competition in these sectors is partly due to the joint responsibilities of the federal government and the states , although , the Council of Australian Governments has recently agreed to a National Reform Agenda that aims to re-invigorate and broaden the reform process . In this context , improving workforce skills will also be important

Raising labour market flexibility and supply . The recent industrial relations reform is a further move away from a system that had been highly prescriptive . Room for further simplification remains , which would allow greater scope for bargaining over workplace conditions . In addition , labour supply can be raised further , particularly from lone parents , second earners , disability beneficiaries and those aged over 55 . The recent tightening in eligibility requirements for welfare benefits goes in the right direction , but should also be applied to the stock of all beneficiaries . A priority for future tax cuts should be to reduce low wage traps

Currently , one of the main driving forces of economic activity is the global boom in mining commodities in which Australia is a major exporter . The terms of trade are currently around a… [banner_entry_footer]

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