Statement 4: Opportunities and Challenges of an
Economy in Transition (Continued)
Conclusion
The Australian economy has always faced continuous changes, but perhaps few periods as dramatic as the current mining boom.
The unrelenting shift in the economic centre of gravity towards Asia will continue to create both opportunities and challenges. Australia, because of our advantages, has been given a head start in capitalising on the opportunities generated by Asia's economic rise and now needs to demonstrate an ability to reap those gains and lock‑in our future prosperity.
The mining boom will continue to play out for some time — leading to further major changes in Australia's economic structure. The extent of other opportunities from Asia's rise, and the changes required to benefit from them, are only beginning to be appreciated. A rising Asia will contain the majority of the world's increasingly wealthy middle class. Their rising consumer purchasing power and changes in their spending patterns will lead to a global consumer market with unprecedented scale and diversity.
It is not possible to fully anticipate the exact form that these other, potentially more important, opportunities will take — let alone the exact shape of the Australian economy that will best service them. However, what is clear is that these opportunities will not just fall into our lap — taking advantage of them will also require a significant change in the structure and, perhaps more importantly, mindset of Australian businesses and will require greater innovation and flexibility in how the skills of Australian workers are used.
The key to future success, and converting opportunity into prosperity that outlasts the mining boom, is to lay sound foundations for the economy's continued adaption and transformation. Australia will need to continue to build productive capacity and ensure that the economy remains flexible and open to the changes required to take advantage of changing global demands. Doing so will provide opportunities across industries and regions, and provide the means to improve the living standards of all Australians. This will be particularly important in the face of other long‑term challenges such as demographic change and the need to transform our economy to reduce carbon pollution.
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