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Asia and Oceania
Australia |
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Last updated: 21 May 2009 |
Country information
Area: 7,682m sq km
Population: 21.75 million
Capital city: Canberra
People: 99% of the population are of European or Asian descent
North-West Europe: 1,526,973
Southern and Eastern Europe: 848,306
South-East Asia: 605,545
North-East Asia: 515,742
Southern and Central Asia: 346,363
Languages: Mainly English with some other European, indigenous and Asian languages
Religion(s): Predominantly Christian with Buddhist, Jewish and Muslim minorities
Currency: Australian Dollar (A$)
Major political parties: There are seven registered parties. They are the: Australian Labor Party (ALP), Liberal Party, National Party, Green Party, One Nation, Australian Democrats, and Family First. The Liberal and National Parties are in coalition at the national level, and in most states except Queensland, where they have merged to form the National Liberal Party.
Government: The Australian Constitution of 1901 established a federal system of government. Under this system, powers are distributed between a federal government (the Commonwealth) and the six States (three Territories - the Australian Capital Territory, the Northern Territory, and Norfolk Island have more limited powers). The Parliament is at the heart of the Commonwealth government. The Parliament consists of The Queen (represented by the Governor-General) and two Houses, the Senate and the House of Representatives. Australia is thus a constitutional monarchy, a federation and a parliamentary democracy.
Head of State: Her Majesty, Queen Elizabeth II
Governor-General: HE Ms Quentin Bryce AC became the 25th Governor General on 5th September 2008.
Prime Minister: The Hon Kevin Rudd MP (Leader Australian Labor Party)
Foreign Minister: The Hon Stephen Smith MP
Membership of international groups/organisations: The United Nations (UN), the Commonwealth, the World Trade Organisation (WTO), the Asia Pacific Economic Co-operation (APEC), Organisation for Economic Cooperation and Development (OECD), theASEAN Regional Forum (ARF), East Asia Summit(EAS), United Nations Educational, Scientific and Cultural Organisation (UNESCO), Pacific Islands Forum (PIF), the Group of 20 (G20), the Major Emitters Forum (MEF).
Economy
Overview
Almost two decades of continuous economic growth, a low unemployment rate and a strong banking system which is the result of a series of structural and policy reforms have all left Australia better placed in the face of a global economic downturn than many other developed nations.
Although analysts warn that the worst is far from over and we may yet see one or two quarters of negative growth, it appears that Australia has so far avoided a technical recession. This is partly due to the Government’s early intervention in pumping billions of dollars into the economy through cash handouts and the announcement of major infrastructure expenditure, and partly to favourable terms of trade and a limited exposure to toxic overseas assets.
The country however is currently facing a significantly changed economic environment, and although Australia’s economy will out-perform those of other advanced nations this year, recovery will be slow and fragile. A run of encouraging news on employment, which, although stalled at 5.8 per cent, is not growing, house prices and consumer spending has seen confidence soar after a shaky start to the year. There is debate over the need for further stimulus, but most commentators agree that now is no time to curb spending. Interest rates are at a low 3 per cent and are expected to begin an upward climb within months. Overall, risks to growth have diminished, but the downward drag from low business investment, employment and household incomes will preclude a quick recovery.
The economy continues to benefit from demand for resource and minerals, and it is generally accepted that China’s continued growth - albeit slower than previously thought - holds the key to Australia’s recovery on the other end of the current crisis.
Trade
Rich in natural resources, Australia has a largely affluent society and open and innovative economy, resulting in growing foreign investment over the past decade. Australia continues to be a strong advocate of increased trade liberalisation in the World Trade Organisation and plays an active role in global trade talks. Japan remains Australia’s largest export market, followed by China, the United States, the Republic of Korea and New Zealand. Strong political, economic and cultural links to the UK make Australia a more significant market for UK exports than its comparatively small population might suggest. In 2007-08, the UK was Australia's sixth largest merchandise trading partner and seventh largest source of merchandise imports. Today the UK remains Australia’s top European Union trading partner.
The UK sells more to Australia than to India or China, and Australia is the UK’s 5th largest market for goods outside the EU. Agriculture, Mining, Oil and Gas, Information and Communication Technology, Biotechnology, Creative and Media, Marine, Railways, Food and Drink, Recreation and Leisure, and Aerospace are all sectors identified as offering significant opportunities for British companies.
In 2007-08, two-way merchandise trade between Australia and the United Kingdom was worth approximately A$16.8 billion. The services trade was also strong in 2007-08, around A$4.7 billion in exports and A$4.2 billion in imports. Recreational travel on both sides remains the strongest contributing factor to the services sector. The UK recently overtook the US as the largest investor in Australia.
Global Trade
Australia’s trade policy is geared to increasing economic activity, liberalising trade and maximising access for Australia in the international market place. Australia is an active player in the WTO, in particular on agriculture. Australia is actively pursuing regional and bilateral free trade agreements, which, it hopes, will deliver stronger trade and economic growth. FTAs have been completed with the US, Singapore, Thailand, New Zealand and Chile, and negotiations are underway with China, Malaysia, Japan, Korea and ASEAN. Further bilateral FTA’s with India, and Indonesia are also under consideration.
Economic indicators (US$)
Economic indicators Australia UK
GDP growth 0.3% -0.7%
Inflation (CPI) 1.5% 1.8%
Interest rate 3.0% 0.5%
Unemployment 5.8% 7.8%
Exchange rates (30 April 2009)
Aus$/US$ 0.8649 Aus$/£ 0.5167
Longer historical perspective
In 1768 the British Admiralty instructed Captain James Cook to begin a search for the 'Great South Island' first reached by Dutch sailors in the early 17th century. The crew of The Endeavour subsequently landed at Botany Bay in April 1770 and claimed the island for the British. The government decided that, following the loss of Britain’s American colonies, Botany Bay should become the new destination for British convicts under sentence of transportation. On 26 January 1788 the First Fleet, sailing under the command of Captain Arthur Phillip, reached Australia (26 January is celebrated annually as Australia Day). A penal colony was also established in Van Diemen’s Land (later renamed Tasmania). In total more than 168,000 convicts were transported. But free settlers were also attracted to Australia by its agricultural potential and, from the 1850s, the discovery of gold. Exploration and expansion followed and by the 1890s, calls for the colonies of New South Wales, Western Australia, Tasmania and Victoria to federate became increasingly strong. Australia became a nation on 1 January 1901.
Longer historical perspective
In 1768 the British Admiralty instructed Captain James Cook to begin a search for the 'Great South Island' first reached by Dutch sailors in the early 17th century. The crew of The Endeavour subsequently landed at Botany Bay in April 1770 and claimed the Island for the British. King George III decided that Botany Bay should become the destination for British convicts under sentence of transportation and on 26 January 1788 the first fleet, sailing under the command of Captain Arthur Phillip, reached Australia (26 January is celebrated annually as Australia Day). In total more than 168,000 convicts were transported and the discovery of gold in the 1850s also began to attract free settlers. Exploration and expansion followed and by the 1890s, calls for the colonies of New South Wales, Western Australia, Van Diemen's Land (now Tasmania) and Port Phillip (Now Victoria) to federate had became increasingly strong. Australia became a nation on 1 January 1901.
BBC News Country Timeline: Australia
International relations
Foreign policy
Australia sees itself as a middle-ranking power, with global interests. Australia maintains close ties with Europe and North America, and has a history of active engagement throughout Asia. Australia places particular emphasis on its long-standing security and intelligence relationships with the US and UK. Australia supports continued US strategic engagement in Asia as an essential contribution to regional stability and prosperity and their bilateral relationship is underpinned by the 1952 ANZUS treaty. In recent years Australia has worked hard diplomatically to strengthen its links with the EU and in October 2008 the EU-Australia Partnership Framework was launched. Close engagement with its Asian neighbours is a high priority in Australian foreign and trade policy. The Australian Government pays particular attention to building a strategic economic partnership with China and is engaged in negotiating a Free Trade Agreement. In 2007 Australia hosted the APEC Summit in Sydney. Australia has established human rights dialogues with China, Vietnam and Burma. The Rudd government has defined its foreign policy priorities as the relationship with the US, multilateralism, and its relationships with the region; this in contrast with the previous Howard administration which was criticised for putting the relationship with the US ahead of all else – including participating in the invasion of Iraq. Australia is seeking election as a non-permanent member of the UN Security Council from 2013.Security
In its immediate neighbourhood Australia is helping to restore sound governance and political stability to the fragile states of the Solomon Islands through its primary role in RAMSI (Regional Assistance Mission to the Solomon Islands, Timor-Leste as the largest contributor to Operation Astute (in support of the UNMIT mission)and Papua New Guinea through the bilateral Defence Cooperation Programme. It currently has approximately 1800 ADF and AFP personnel deployed in these three countries.
Further afield, Australia expects to deploy up to 1550 ADF personnel in Afghanistan as part of the NATO-led International Stabilisation and Assistance Force (ISAF), a significant uplift from the 1090 ADF personnel already deployed in Afghanistan. This deployment is primarily in Oruzgan Province with focus on training Afghan security forces.
Australia withdrew its combat troops from Iraq in mid 2008 and now only has a small detachment of 80 to provide local security for the Australian Embassy. In summary, approximately 3,300 ADF personnel are deployed overseas to protect Australia and its national interests, with a further 500 involved in maritime protection around its coastline.
The Defence White Paper published on 2 May 2009 set out the future size and force structure of the ADF. This was amplified by the publication on 1 Jul 09 of the Defence Capability Plan, which set out the Department’s equipment spending plans over the coming 4 year Forward Estimates period. The funding for this programme (A$104bn) will be supplemented by the Defence Strategic Reform Programme, which envisages savings of A$20bn over the next 10 years.
During a visit to Japan in June 2008 PM Rudd announced the formation of an International Commission on Nuclear Non-Proliferation and Disarmament to be co-chaired by Gareth Evans and Yoriko Kawaguchi (former Foreign Ministers of Australia and Japan respectively). This will provide reports both before and after the Nuclear Non Proliferation Treaty Review Conference in 2010.
In June 2008 PM Rudd proposed the creation of an Asia Pacific Community by 2020 as a means of strengthening political, economic and security cooperation over the long term. Senior Australian diplomat Richard Woolcott has been appointed to lead regional consultations on this proposal.
Climate change
Kevin Rudd’s first act as Prime Minister was to ratify the Kyoto Protocol at the UNFCCC Bali meeting in December 2007. As part of the Carbon Pollution Reduction Scheme White Paper, published at the end of 2008, Rudd has committed to the introduction of a domestic cap-and-trade scheme by 2010. Rudd has reaffirmed his commitment to a 5% cut in emissions by 2020 (or 25% conditional on a global deal to stabilise CO2-equivalent at 450ppm by 2050). Australia is an active participant in global climate change negotiations, including through its membership of the Major Emitters Forum (MEF). In June 2008, the governments of Indonesia and Australia agreed to establish a framework for long-term cooperation on reducing emissions from deforestation and forest degradation under the Indonesia-Australia Forest Carbon Partnership. July 2009 saw the formal launch of another Rudd initiative, the Global Carbon Capture and Storage Institute (GCCSI).
Science and Innovation
Australia has a strong S&I community. With only 0.3% of the world’s population it accounts for 2.9% of the world’s scientific publications and 2.5% of the global medical research. With one third of all Australian scientific publications having at least one overseas co-author, Australia can be classed as very outward looking. The USA is Australia’s largest scientific partner but it also has strong scientific relationships with China and India.
Traditionally Australia’s research strengths have been in the areas of science best complementing its natural resources and geographical endowments, for example: engineering/technology sciences, agricultural and environmental sciences and the biological and earth sciences. However Australia also has a solid presence in emerging fields such as photonics and biotechnology.
International Organisations
Australia has always been committed to the UN and other multilateral organisations and is currently seeking election to the United Nations Security Council in 2012 for the term 2013-14. In 2004, Australia chaired the UN Commission on Human Rights. It is a strong supporter of the Commonwealth, which it chaired from 2001 to December 2003.
Australia's relations with the UK
The UK and Australia have a close and long-standing relationship, which continues to flourish. Political, defence and intelligence relationships are excellent, while in the fields of law, education, medicine, and science & innovation the two countries share know-how and similar institutions.
In April 2008 Kevin Rudd made his first visit to the UK as Prime Minister. The visit culminated in the release of a joint UK-Australia Statement entitled ‘Progressive Plan of Action on Common Interests: Climate Change, Trade, Development and Global Institutions’. In November 2008 the UK hosted the second Australia-UK Ministerial Dialogue (AUKMIN) comprising Foreign and Defence ministers from both countries. In April 2009 PM Rudd visited the UK for the G20 Summit. In a bilateral programme with British Prime Minister Gordon Brown they released a joint statement on Strengthening the Strategic Partnership between the United Kingdom and Australia.
Bilateral ties are exemplified by double taxation agreements and mutual access to health services. There is a long tradition of co-operation on international affairs. In 2001, Australia celebrated its Centenary of Federation. To mark the Centenary, the UK made a substantial contribution to an Australian-British project to build a monument at Magna Carta Place in Canberra as a tribute to our shared history and Britain's legacy of parliamentary democracy. In March 2006 the second UK-Australia Leadership Forum was held in Canberra to coincide with Prime Minister Blair's visit to Australia. The Dialogue brought together leaders from public and private sectors from both countries to discuss current issues of relevance to the relationship.
UK Australia people facts
Passports:
Between April 2008 and April 2009, the British High Commission in Canberra issued 62,584 passports. Of these, 16,775 were first time applications. In 2007/08, there were 56,825 passports issued, of which 14,039 were first time applications. Therefore, passport issues have risen by 5,759 or 9%. Applications since 1998 are volatile, ranging from 54,335 in 2003 to 66,872 in 1998.
Visas:
More than 95% of visits to the UK from Australia are visa free. In the 12 months between April 2008 and April 2009, the British High Commission in Canberra issued 27,584 visas, a fall of 10% or 3,173 on the previous year largely because of the global economic downturn. Of these, about 13,000 were a combination of working holidaymaker and Tier 5 YMS visas, 2,800 ancestry visas, 1,300 settlement visas, 1,800 work permits, 800 students and 2,000 highly skilled visas.
Travel to the UK:
Approximately 959,000 Australians visited the UK in 2008. They spent an average of £806 and the average trip lasted 17 nights. Total spending is therefore £773 million (Source: VisitBritain). Previous year’s figures: 957,000 Australians visited the UK in 2007 according to VisitBritain, up by 1,000 on 2006. They spent £714 and 13 days in the UK.
Travel to Australia:
In 2008, approximately 608, 600 Britons visited Australia (Source: ABS) compared with 694,800 in 2007. 34,145 Britons were granted working holidaymaker visas for Australia in 2007/08, compared with 31,203 in 2006/07 (source: DIAC). The total number of Britons entering Australia for any purpose in 2007/08 and from any country was 1,317,419 (source: DIAC). In 2007/08, the FCO in Australia handled 1,128 ‘serious’ assistance cases with 76 deaths and 47 arrests (FCO).
Britons eEmigrating to Australia:
In 2007/08, 23,236 Britons emigrated to Australia. Of these, 17,853 were ‘skilled’ migrants and most of the rest were ‘family’ migrants (Source: DIAC). In addition, several thousand more (probably around 7,000 or so) applied for settlement while they were already within Australia. The figures on settlement are broadly consistent with the previous year. 13,110 Britons were ‘457’ temporary skilled migrants in 2007-08, making the UK the largest source of 457 visa holders.
UK Population in Australia:
The number of British-born people in Australia rose slightly between 2001 and 2006 to 1.04m (Source: Australian Census 2006). Of these, 245,000 receive British State pensions (DWP).
Child Migrants
Child Migrants were British children in care who were sent, under government approved schemes, to certain Commonwealth countries (Canada, Australia, New Zealand, Rhodesia - now Zimbabwe). These schemes can be traced as far back as 300 years ago and continued until the 1960s. A House of Commons Health Select Committee visited Australia in June 1998 in connection with its inquiry into the welfare of former child migrants. The Committee's report, in July 1998, detailed the stories of many child migrants who had endured physical and sexual abuse, systematic punishment, and separation from siblings. The British Government responded in December 1998, offering increased funding to the Child Migrants Trust to enable child migrants to visit relatives in the UK. The Government set up a database containing details of child migrants and a website. The Child Migrants Trust has now completed this work. In June 2000 the Australian Senate Community Affairs Reference Committee agreed to hold an inquiry into the child migration scheme. The Committee published a report on 30 August, entitled 'Lost Innocents: righting the Record', which contained 33 recommendations - some for the British Government. The Australian Government responded in 2002 by announcing a package of measures worth A$3.7 million (about £1.3million) to provide practical support and assistance to former child migrants to Australia.Frozen Pensions
The UK pays about 800,000 pensions overseas. In those countries where no bilateral agreement exists to up-rate pensions, including Australia, they are frozen at the time of immigration: 205,000 UK pensioners live in Australia. Of these, 70% qualify for an Australian aged pension, either through residency in Australia, or under the former bilateral social security agreement. In those cases the Australian government pays the difference between the UK frozen rate pension and the Australian age pension. Owing to the high cost of this measure, Australia subsequently abrogated the Bilateral Social Security Agreement in 2001. Existing British pensioners in Australia are not affected; but future British pensioners emigrating to Australia will have to complete the standard 10 years residence before
qualifying for an Australian pension. Australian pensioners in the UK will be similarly affected. The abrogation also affects entitlements for those travelling between the two countries to welfare payments such as unemployment and invalidity benefits.
Defence
The relationship between our respective Armed Forces is stronger than ever, particularly as a result of recent and ongoing deployment operations together. Following the drawdown of ADF personnel from Iraq, both countries remain strongly committed to operations in Afghanistan, where the ADF contribution has increased from 1,090 to 1,550. There is also a significant personnel exchange programme backed up by numerous mutual training and educational opportunities that continue to be reviewed and expanded upon. The UK and Australia are both members of the Five Power Defence Arrangement (FPDA – UK, Australia, Singapore, Malaysia and New Zealand) and the America, Britain, Canada, Australia and New Zealand (ABCA) Interoperability Programme and routinely exercise together under one of these two agreements. Australia continues to be an important market for UK defence exports.
2008 and 2009 Ministerial Visits
Australian Ministerial Visits to the UK
- Prime Minister Kevin Rudd and Treasurer Wayne Swan - April 2009 for the G20
- Joel Fitzgibbon, the Australian Defence Minister, and Stephen Smith, the Australian Foreign Minister - November 2008Anthony Albanese, Minister for Infrastructure, Transport, Regional Development and Local Government and Leader of the House - July 2008
- Anthony Albanese, Minister for Infrastructure, Transport, Regional Development and Local Government and Leader of the House - July 2008
- Julia Gillard, Deputy Prime Minister and Minister for Education, Employment & Workplace Relations and Social Inclusion - June 2008
- Wayne Swan, Treasurer - June 2008
- Prime Minister Kevin Rudd - April 2008
- Peter Garrett, Minister for Environment, Heritage and the Arts visited the UK in April 2008
British Ministerial Visits to Australia:
- Chris Bryant, Foreign Office Parliamentary Under Secretary of State, August 2009
- Sir Sherard Cowper-Coles, ~ Foreign Secretary’s Special Representative for Afghanistan and Pakistan - in April 2009
- Baroness Scotland, Attorney General - February 2009
Baroness Ashton, Leader of the House of Lords, visited Australia in August 2008 - Des Brown MP, Defence Secretary, visited Australia in May 2008
- Meg Munn MP, Parliamentary Under secretary of State, visited Australia in May 2008
- Lord Jones, Minister for trade and Investment, visited Australia in April 2008
Geography
Australia occupies the whole of the island continent of the same name and lies between the Indian and Pacific Oceans. Although the country's land mass is half as big again as that of Europe, most of Australia is empty. The population is predominantly concentrated in the south eastern coastal cities of Sydney, Brisbane, Melbourne and Adelaide. The interior of the country - the Outback - is comprised of sparsely populated semi-desert and tropical wetlands.
UK Trade and Investment Country Profile: Australia
UK Trade and Investment Country Profile: Australia
Politics
Kevin Rudd was elected Prime Minister on 24 November 2007. Members of the House of Representatives (Lower House) serve three-year terms. Senators serve fixed six-year terms. (from 1 July). It is usual to hold a full House of Representatives and a half-Senate election simultaneously every three years.
State/Territories
The federal Australian Labor Party's election victory in November 2007 saw wall-to-wall Labor governments across Australia until August 2008, when the Western Australian Liberal Party won in a closely fought State election. In March 2009 Anna Bligh led the Queensland Labor Party to a third successive election victory and became the first female elected Premier in Australia.Victorian State elections are next scheduled for 27 November 2010. Tasmania's elections will also be held in 2010 as will South Australia’s in March 2010. The next NSW State elections are scheduled for 26 March 2011.
Indigenous Aboriginal Community
The treatment of the indigenous Aboriginal community (2.4% of the population) has challenged successive Australian governments. A central point of the current Labor Government’s election campaign was to address the challenges facing the indigenous population. On the first day of the new Australian Parliament in February 2008, Kevin Rudd made a formal apology on behalf of the government to Australia’s indigenous population for the treatment of the 'Stolen Generation' (government-backed schemes between 1920 and 970 to remove Aboriginal and Torres Strait Islander children from their parents and place them with white families). A bipartisan 'war cabinet' announced by Rudd on 13 February 2008 and committed to improving the lives of Indigenous people is yet to deliver any concrete outcomes.
Republic Debate
In a constitutional referendum held on 6 November 1999, Australia voted to remain a constitutional monarchy (55% to 45%). Voters were offered a choice between the status quo and the republican model approved by the 1998 Constitutional Convention: a President appointed by a two-thirds majority in Parliament. Debate focused principally on the republican model rather than on the monarchy. Republicans wanting a directly elected president formed an unlikely coalition with monarchists to defeat the referendum. Despite the result, there is extensive republican sentiment in Australia. The Australian Labor Party supports a republic as does the leader of the opposition, Malcolm Turnbull.
