Overall - Australian Industry has been slow to restructure in response to globalisation. Low ago we did start to move out of the secondary sector into the tertiary sector where our real strengths lie but a few industies like the car industry which really have never been profitable in Aust have survived with government assistance but really had to come to an end sooner or later.
Countries should only be in industries where they have a competitive advantage - for the second and third worlds with is labour intensive industry - for the first world it is move out of labour intensive manufacturing into the service and technology industries or manufacturing where technology not humans make the products - this is where Australia is now but we still need to get rid of a couple of dinosaurs like the car industry. Niches however are an exception.
Japan is the classic example of the life cycle of a typical modern economy.
After the war it was a labour based economy making crap goods - as expertise grew it moved to making better but cheaper goods and salaries began to grow. It then became an innovator and began to make better quality goods that started to get a quality reputation but prices began to escalate, fast forward to now where the actual Japanese economy is based very much in the tertiary sector - yes they still produce many secondaty sector goods but because of costs of production many of these manufactured products are made off shore as they are too expensive to make them in Japan.
Have you noticed that South Korea is a couple of decades behind Japan - Korea is now starting to make their cars offshore - some in Eastern Europe. Countries like Malaysia, China and India started this process much later but are progressing along the same timeline.
Aust is no different - once we could support mainstream manufacturing but can no longer do so - when we have tariffs the quality of our goods was crap - competition when they were removed fixed that but set us up to be technology innovators not makers of things. While I do not support tarrifs on imported goods I do believe in a level playing field and do support tariffs on imported goods that have been subsidised or are being dumped in Aust.
We need to move on - stop sinking Govt money into these industries and put this money into innovation.
And stop selling our dirt at bargain basement prices and do at least one level of value adding to primary/mining industry goods we sell. Also stop growing things that are not suited to our climate and are resource intensive and switch to things less traditional and more suited to our country.
As the world becomes more globalised we need to become more global in our thinking and in our industries.
Garry
REMLR 243
2007 Range Rover Sport TDV6
1977 FC 101
1976 Jaguar XJ12C
1973 Haflinger AP700
1971 Jaguar V12 E-Type Series 3 Roadster
1957 Series 1 88"
1957 Series 1 88" Station Wagon
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