The Future of Globalization in Australia

The Future of Globalization in Australia

The Future of the Australian Economy

Australia’s economy is considered already one of the strongest with its GDP, as mentioned in the previous blog. The role of globalization has been vital in the significant growth. The growth of developing countries (such as India, China) have also impacted the global influence and these emerging economies may bring more economic interests for Australia. However, the pace of the emerging markets is faster than anticipated. It is quite possible the transformation may also take place in the future of globalization for the Australian economy. The implications may happen sooner than expected, with the sectors from manufacturing, mining and trade that might result to rise of the global commodity prices and challenges in the GDP and trade [1]. It has also caused some more demand in the long-term approach for technological advancement and manufacturing.

Technological Advancement and Manufacturing

Australia’s technological innovation access is not in the strong category of manufacturing and development. Due to the effects of the globalization, most of the intensive manufacturing have been moved offshore – to save costs. The manufacturing of parts and even automobiles have been moved offshore.
car

More of the R&Ds from the other countries (for offshoring) have instead benefited from the resources provided by the multinational corporations. As per the explanation of this technological change from Segal [2], the scientists and engineers who have worked and invested in other countries such as the United States, have returned home and contributed to the R&D programs. In this process, Australia has been long falling short in the process and supporting their innovational programs are underdeveloped. The state is not spending so much on R&D and has caused for the raw materials to be sent to the industrial mechanisms in Asia instead.

In effect, the capital to draw strong innovation is what may lack in the future for the globalization era for Australia. The emergence of industrial and innovative countries with R&D institutes have made them more competitive and Australia’s means to consider their leverage amongst the Asia-Pacific region is slowly drifting. Despite the powerful economic growth, the ability and capacity to capitalize on innovation may be a bit behind even to the likes of India, China and Taiwan [3]. The future may look bleak unless the realization becomes more public and subjected by the government’s agenda.

The Future Struggle of the Australian Middle Class

The concept of globalization in the past lectures and blogs have shown some achievements and benefits towards mostly for the rich and the poor. The global market has been described as such ways to promote the competitiveness in the knowledge economy and use technological innovation at the lowest cost. The challenge the competition is that the countries and the people who cannot compete are those who are distributed with the middle-class in the wealthy nations. This is the case for Australian middle class [4].

Most of the Australian middle class have been “squeezed” where the skill levels have been low and the power to sufficiently support their cause are limited. The institutions have not been beneficial and instead the middle-class citizens have been taken advantage of. The future lies in the development of the middle class. The investments to promote the well-being of the middle-class have been far from superior. It has been also similar to other countries such as displaced workers from the U.S. and Germany [5]. How the government empowers and create opportunities from the perspective of the middle-class and make it possible for them to be advanced in the global stage – is indeed a task that is a challenge for the future of globalization.

australian-income-and-wealth-distribution-2016-part-2-v4-final-01
The middle class wage in Australia annually

 


Climate Change Uncertainties

The environmental globalization blog has expressed concerns on the future of climate change. The rich resources of the Australian reefs, particularly the Great Barrier Reef, have suddenly become inevitably endangered. The panic and confusion to change the tourist spot as a ‘risk’ may be a premonition of something more dangerous in the state of climate change. The restoration and actions by NGOs and International Organizations to address the issues look bright but it depends on the commitment of the global climate change that will create the most significant impact. The sole drive of the changes in emissions and human settlement may just be one of the factors but the effects are irreversible. The management of climate change will be the future of globalization’s in-depth action plan towards a better state for Australia’s uncertainties in the environment.

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Australia Towards Globalization and its Future Sustainability

Australia has embraced globalization in the economic, political, environmental, social, cultural and security dimensions. The previous blogs have covered the key points of the dynamics of the impact of globalization on the state of Australia. Without the entry of globalization, Australia may not be the same as it is now. The current state will reflect towards the future and its end state. It will depend on the grounds of the power of government, people and the whole world to make a difference. The achievement of sustainability needs to start now as it faces towards globalization and there is no turning back and only managing the changes that happen and planning for the long-term. The video below shows the globalization and building the future in Australia.

Thank you for reading and please let me know for any comments below.

References:

[1] Parkinson, Dr. Martin. 2011. “SUSTAINABLE WELLBEING – AN ECONOMIC FUTURE FOR AUSTRALIA.” Australian Government The Treasury. Accessed November 30, 2016. http://www.treasury.gov.au/PublicationsAndMedia/Publications/2011/Economic-Roundup-Issue-3/Report/Sustainable-wellbeing-an-economic-future-for-Australia

[2] Thompson, Gary Sauer. 2005. “GLOBALIZATION AND AUSTRALIA’S FUTURE: A BIG WORRY.” Philosophy.com. Accessed November 30, 2016. http://www.sauer-thompson.com/archives/philosophy/002932.html

[3] Ibid.

[4] Ibid.

[5] Ibid.

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