Australia in the Asian Century - or just lost in Asia?
Australian Prime Minister Julia Gillard released the long-awaited white paper "Australia in the Asian Century" on Sunday.
It basically affirms that Australia’s future lies with Asia and, as a consequence, immense economic opportunities exist for Australia to grab.
The paper hinges the nation’s foreign policy on becoming a competitive force within the region through skills development, innovation, infrastructure, the tax system, regulatory reform and sustainability.
However before a nation can become a competitive force, it must have an accepted place in the region.
On this key strategy, the white paper does little more than make a “rallying call” to Australians to come out and make it happen.
The paper also reeks of Austro-centrism, being packed with expectations of what Australia will win out of closer ties with Asia, without offering much back in exchange – such as Australia having closer ties with Asian universities in order to attract students and skilled workers. Rather one-way to say the least.
Not surprisingly, the document is keen to reaffirm Australia’s loyalty to the United States.
Historically the US is seen as a saviour from invasion by the Japanese during World War II and consequently there has been a total commitment from successive Australian governments through the Cold War until the present time for US foreign policy.
This has brought many foreign policy mistakes and probably cost Australia any individual identity in Southeast Asia.
In contrast, China is now so important to Australian trade, investment, and tourism, yet Australia is inadvertently niggling Beijing with its loyalty to the US.
China saved Australia from a deep recession with demand for its minerals, whereas the US brought the Australian government anguish over the involvement in Iraq and Afghanistan. China would prefer to deal with an Australia that had a mature and independent foreign policy rather than one that is an enthusiastic supporter of US foreign policy.
China as an ally presents less of a dilemma than the US, as China has historically always allowed some deviation from its official foreign policy. For example China allows Australia and other nations to have a separate relationship with Taiwan, without making this difference a major issue.
After decades of successive government foreign and trade policy, Australia still does not have any embedded position within the region.
The influence of Australian business and financial institutions is minor, nowhere near the critical mass needed to become a competitive force in the region.
The only exception is in the mining sector, which has made the Australian economy very dependent upon demand in Asia, particularly China.
Back in the 1990s, then prime minister Paul Keating stated that Australia is part of Asia and made a concerted effort to embed Australia within the region.
However, all these gains were lost when John Howard came to power in 1996 reaffirming the Canberra-Washington link, earning the label for Australia of the US’s deputy sheriff in the Asia.
The Australian relationship with the region is one where Australia needs it more than the region needs Australia.
The Australian market is small compared to other markets and of little interest to regional exporters who prefer to put their efforts into the larger markets of China, Japan, EU, and the US.
White papers are all very well but it will be action and not words that count.
It will take much more than massive investment in skills and education for Australia to engage the Asian region, let alone be “competitive”.
One of the paramount barriers Australia has to overcome is the deep-set belief that its own cultural values are not necessarily universally accepted across the region.
It’s not about learning Asian languages but about understanding different points of view, approaches, and “mindsets”. Aussie-centrism must take a back seat in relationships around the region for Australia to be seriously considered a member of the region.
Maybe it’s time for Australia to release the US security blanket a little and become a mature and independent nation within the Asian region.
The white paper has turned it into a promissory note for a better future within Australia based upon the misconception that internal capacity building will make Australia more competitive in Asia, being too “fuzzy” about developing a real strategy to engage the region. Building up capacities is only building capability.
They are not strategies within themselves.
Presence and accommodation of Asia to what Australia really has to offer is the vital key.
This implies showing the region that an independent Australia is truly willing to put its lot in with Asia and not with the US.
It’s highly doubtful that anybody in the region is looking at Australia with any economic interest today.
Murray Hunter is an associate professor at University Malaysia Perlis, and the author of a number of books on agriculture, economics, and entrepreneurship.
