Gulf States can learn from Australia

As governments on the western side of the Indian Ocean battle the global recession, economists say they could do worse than look Down Under for some answers, writes
Wayne Arnold, in Abu Dhabi's The National.

Arnold's article, which targets Gulf state readers, outlines how the groundwork for Australia's productivity boom was laid 24 years ago, with the deregulation of its financial system."

"It slashed import tariffs in 1988 and again in 1991, and then jettisoned government wage controls in 1992. These reforms set the stage for a surge in productivity in the 1990s", Arnold recalls.

The feature article is a useful backgrounder for any reader. It offers opinions from John Edwards, chief economist at HSBC in Sydney; Kyran Curry, an analyst with Standard & Poor’s; and Amy Auster, the head of international economic research at ANZ Bank in Melbourne.

Arnold tells his readers: "Australia has long been known as the 'Lucky Country' thanks to its climate and abundance of land, but economists credit a reform movement undertaken in the 1980s and 1990s that overhauled the economy, boosted productivity, diversified exports and reduced its reliance on commodities for growth".

Full story: The National