Australia is a unique economy being a developed, Western country in the Asian region. But what does Australia have a competitive advantage in?
Australia has a very strong housing market. In the large cities, namely Sydney, prices just keep going up and up. It is hard to know when this is going to end. Right now it is definitely overheated.
Australia has liberal property ownership laws which makes it not that difficult for wealthy overseas investors to buy property. Many Asians take advantage of this – Australia being a well-developed, democratic, stable, free western country makes it highly desirable for them to grab some land.
Australia’s universities have high numbers of full fee-paying international students. Again a lot of these students are coming from Asian countries.
Australia’s universities are first-rate, offering highly reputable credentials for their graduates.
- Food and Beverage
Australia has space and is poised to become a food producing powerhouse. Australian food and beverage products are high quality. The demand for these products in foreign countries keeps growing every day.
In spite of all these developments, there are significant challenges within Australia’s economy. Some of these include:
- The rise of part-time employment
The casualisation of the Australian workforce presents a serious challenge. Many people are being pushed into part-time positions- it is getting harder to find full time work.
Australia weathered the Global Financial Crises due to a mining boom (which has since died down), but many people are clueless as to where the full time opportunities are.
Certain people with particular skills like silver-tongued mortgage brokers are doing well for themselves. But on the whole there are still many folks who are having a tough time.
- We don’t manufacture our own products
Australians do not make many of our own products and it is a bit of a problem. Our biggest manufacturing sector is in food and beverage- but this is not creating an original product.
Without this kind of homegrown industry we are missing out on a lot. It also means we lack the supporting research and development jobs that drive innovation.
Where do the big opportunities lie for Australia:
Australia’s advantage lies in embracing the benefits of its sheer size and natural resources.
There will be a big push for innovation in Australia’s farming industry- which is where Australia has the potential to become a world leader. Working on farms will become an honourable pursuit.
Australia needs to adopt a new mentality where working a job on the land is held in high esteem. If more jobs shift to the land then Australia could truly become a world leader in farming. If Australia invests and takes the lead in modern farming practices then we will have a prosperous future.
This will require a bit of a shift in mentality from the idea that farmhand positions is unskilled work to be filled by immigrants who cannot speak English. Instead there needs to be attractive training programs supporting the industry that attract talent.
Also Australia’s country towns will be built up into big cities. This development will bring plenty of jobs.