australia in “asian century” or is it lost in

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Australia in the “Asian Century” or is it Lost in Asia?

Australia maintains a delusion of reality: China and the US –

The Australian dilemma.

The Australian Prime Minister Julia Gillard released a long

awaited white paper Australia in the Asian Century yesterday,

which has been “wowed” by the Australian media. The white

paper basically affirms that Australia’s future lies with Asia and

consequently immense economic opportunities exist for Australia

to grab.

The paper hinges the nation’s strategy of becoming a competitive

force within the region through skills development, innovation,

infrastructure, the tax system, regulatory reform, and

environmental 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 “rally call” to Australians to come

out and make it happen.

The paper also reeks of Austro-centrism where most of the points made in the document are

written with the expectation that Australia will win out of closer ties with Asia without necessarily

giving 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.

The Australian China US relationships

Not surprisingly, the document still goes out to reaffirm Australia’s loyalty to the United States. This

could be seen as Premier Julia Gillard’s metaphoric statement of “all the way with LBJ”.

Historically the US is seen as a savior from invasion by the Japanese during WWII and

consequently there has been a total commitment from successive Australian governments through

the cold war until the present time for US foreign policy.

The ANZUS Treaty that embodied these commitments has brought many foreign policy mistakes to

Australia and probably cost Australia in South-East Asia its own persona of identity.

In addition, although Australia could be considered a rich multicultural society today, some people

in Asia still have a negative impression because of the old white Australia policy, treatment of

indigenous people, Pauline Hansen, and the latest policies on boat arrivals of asylum seekers.

In contrast, China is now so important to Australian trade, investment, and tourism, yet Australia is

unconsciously niggling China with its staunch loyalty to the US. China saved Australia from a deep

recession with demand for minerals whereas the US brought the Australian Government anguish

over the involvement in Iraq and Afghanistan.

In addition, it appears the US had a different rule to Australia than other allies. The Australian

Government has been expected to follow US foreign policy in an unquestionable manner.

Each Australian Prime Minister since Curtin has kowtowed to the US, seeking a close presidential

relationship in the belief that this was in the best domestic and foreign interests.

Australia in “Asian Century” or Is It Lost in Asia? China & US: Australian Dilemma

Post Categories: Asia

Prof. Murray Hunter | Sunday, October 28, 2012, 23:30 Beijing

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Certainly a close personal relationship with the incumbent US president has been seen as

something of importance. Conversely, Kevin Rudd’s prowess at speaking Chinese was not good

enough to develop the relationship with China, as the relationship is much more complex than mere

small talk.

China would prefer to deal with an Australia with a mature and independent foreign policy rather

than an enthusiastic supporter of US foreign policy. Precedent shows that China does not

necessarily expect blind allegiance but would like to see Australian decisions more in line with its

own realities rather than someone else’s.

However looking today at both major parties in Australian politics this is highly unlikely. In addition

the punishment dished out by the US Government to the David Lange Government in New Zealand

in the mid 1980s is a deep lesson about what happens to those disobedient to the US.

From the US perspective, Australia is a nice ally to have, one it can rely upon on the international

stage, which will be important as Australia takes up a temporary security council seat at the UN.

With the Obama visit to Canberra and Darwin last year and the stationing of troops in Australia, the

country has some importance to the US until it can establish much more substantial bases closer to

China.

China as an ally presents less of a dilemma than the US, as China has historically always allowed

some deviation from the official Chinese foreign policy. For example China does allow Australia

and other nations to have a separate relationship with Taiwan, and different approaches to regional

issues without making these differences major issues.

Maybe Australia can learn from the Indonesian approach of dynamic equilibrium, a doctrine where

Washington and Beijing would agree to co-exist rather than compete for supremacy in the region.

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occidental position on detente and human rights that it expects within the region. For example,

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After decades of successive government foreign and trade policy, Australia still does not have any

embedded position within the Asian region. In fact Australia has been historically viewed as

occasionally condescending and arrogant towards the region with attitudes towards human rights,

where Australia’s own practices in matters like the detention of boat people are seen by some as

hypocritical.

The influence of Australian business and financial institutions in the region is minor, nowhere near

the critical mass needed to become a competitive force in the region. Australia at this time has only

a very low profile in the Asian banking and finance sector with no brands out there.

The only exception is in the mining sector, which to all intents and purposes has made the

Australian economy very dependent upon demand in Asia, particularly China.

Back in the 1990s the then Prime Minister Paul Keating stated that Australia is part of Asia and

together with the then foreign minister Gareth Evans made a concerted effort to embed Australia

within the region.

This had some positive effect with Indonesia, Cambodia, Laos, and East Timor with Australian

policy working towards enhancing peace and prosperity within the region.

But they had their setbacks over the recalcitrant remarks about Malaysia’s former Premier Mahathir

Mohamed which soured relations with that country for a number of years. However perceptively, all

these gains were lost when John Howard came to power in 1996 reaffirming the Canberra-

Washington link, earning the label for Australia as the US’s deputy sheriff in the Asia.

The Australian relationship with the region is one where Australia needs the region 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. Other hubs in the region are more conducive to becoming corporate HQ hubs than

Sydney or Melbourne.

The only real interest Australia has for Asian investors been in rent seeking activities like real

estate. Australia is the gateway to nowhere, so cannot play the role as a hub like Singapore and

Hong Kong have successfully done. However the concept of Darwin as a gateway to Asia has been

formally recognized but it remains to be seen what will actually be done about it.

With the rapidly changing nature of the region and the shifting balance between the US and China

within Asia, the Austro-centric view of the region needs urgent revamping. The Australian economy

in the short and medium term is dependent upon China, and Australia perceives itself rightly or

wrongly to be dependent upon the US for security. Australia’s acceptance of the wide array of

Asian views within the region that Australia can one day become an equal partner in the region.

Though Australia has some deeply historical links with many parts of the region due to some heroic

actions of troops during the Second World War and the Malayan Emergency after that, tragically

these opportunities to further develop relationships were not capitalized upon, due to Australian

mesmerization with Washington.

White papers aside, it will be action and not words that are important and China and the region will

be surprised to see any real change, although the intention and realization of the need is present

within the foreign policy Australian agenda.

However with Australia, old habits die hard. And just as Julia Gillard had an unfortunate fall the

other week in India in front of the media, Australia also has a track record of falling over itself in

Asia.

It will take much more than a massive investment in skills and education to be able 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’. Austro-centrism must take a back seat in relationships around the

region for Australia to be seriously considered a member of the region. Currently it’s not.

The white paper is still haunted by Australia’s past. 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.

However one fears with the promise of a rise in real incomes from the “Asian Century” initiative,

that the whole thing is just a pander to the domestic electorate. As the report itself aspires, Asia is



seen only as a means for Australian incomes to become one of the top 10 per-capita ones in the

world.

Rather, Ken Henry the principal author of the white paper appears to have placated the Australian

Government’s wishful thinking for a positivist instrument that can be sold to the electorate, which he

may have done well.

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 are only

building capabilities. They are not strategies within themselves.

On initial reading of the 312 page report there appears to be little new in it, and one could argue

that existing ALP policy was used as a template. If this is correct then it will be difficult for this white

paper to garner bipartisan support, and maybe fated to become another relic of a former

government tossed out of office.

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.

Asian suspicion may arise to the issue Ms Gillard herself talked about Australia being a winner in

Asia, and this implies there must be losers.

Its highly doubtful if anybody in the region is looking at Australia with any more interest today.

Prof. Murray Hunter

Tags: Asia Asian Century Australia China

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