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01. What is Australia?

Overview:

Do you know that Australia is both the name of the world’s smallest continent, and the short form of the Commonwealth of Australia? In fact the Commonwealth of Australia is the sixth largest country in the world (geographically), the only one to occupy an entire continent, and the largest in Australasia. The name ‘Australia‘ comes from the Latin phrase Terra Australis Incognita (”unknown southern land”, an idea introduced by Aristotle).

Aboriginal settlers are believed to have arrived on the Australia continent from Southeast Asia about 40,000 years before the first Europeans began exploration in the 17th century. No formal claims were made until 1770, when Capt. James Cook took possession in the name of Great Britain.

Australia is a federation of 6 colonies of Great Britain that became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Long-term concerns include pollution, particularly depletion of the ozone layer, and management and conservation of coastal areas, especially the Great Barrier Reef. A referendum to change Australia’s status, from a commonwealth headed by the British monarch to an independent republic, was defeated in 1999.

Official language: English

Capital: Canberra, Australian Capital Territory

Largest City: Sydney, New South Wales

National Anthem: Advance Australia Fair

Currency: Australian dollar

Time Zone: UTC +8 to +11

Internet TLD: .AU

Calling Code: 61

Geography:

Area: 7.7 million sq. km. (3 million sq. mi.)
Cities (2006): Capital
Canberra (pop. 323,000).

Other cities–Sydney (4.3 million), Melbourne (3.6 million), Brisbane (1.8 million), Perth (1.5 million), Adelaide (1.1 million), Darwin (114,000), Hobart (48,808).
Terrain: Varied, but generally low-lying.
Climate: Relatively dry and subject to drought, ranging from temperate in the south to tropical in the far north.

People:

Nationality: Noun and adjective–Australian(s).
Population (2007 est.): 21 million.
Annual population growth rate: 1.3%.
Ethnic groups: European 92%, Asian 6%, Aboriginal 2%.
Religions (2006): Catholic 26%, Anglican 19%, other Christian 9%, other non-Christian 5%, no religion 19% and not stated 12%.
Languages: English.
Education: Years compulsory–to age 15 in all states except
Tasmania, where it is 16. Literacy–over 99%.
Health: Infant mortality rate–4.63/1,000. Life expectancy–males 78 yrs., females 83 yrs.
Work force (10.4 million): Agriculture–3.0%; mining–4.9%; manufacturing–10.3%; services–72.4%; public administration and defense–3.8%.

Government:

Type: Democratic, federal-state system recognizing British monarch as sovereign.
Constitution: Passed by the British Parliament on July 9, 1900.
Independence (federation): January 1, 1901.
Branches: Head of state is the British monarch, who is also the Australian sovereign, represented by an appointed governor general.

Legislative: bicameral Parliament (76-member Senate, 150-member House of Representatives). The House of Representatives selects as head of government the Prime Minister, who then appoints his cabinet.

Judicial: independent judiciary.
Administrative subdivisions: Six states and two territories.
Political parties: Liberal, the Nationals, Australian Labour, Australian Democrats, Australian Greens, and Family First. The Liberal Party and the Nationals form the governing coalition.
Suffrage: Universal and compulsory over 18.
Central government budget (revenue): FY 2007-2008 $219.4 billion; FY 2008-2009 $231.8 billion (2006
US$/$A = 1.32).
Defense: $19.9 billion or 1.81% of GDP for FY 2007-2008. (2006
US$/$A = 1.32).

Economy:

GDP (year to March 2007): $714.1 billion.
Inflation rate (year to March 2007): 2.4% per annum.
Reserve Bank official interest rate: 6.25%.
Trade: Exports ($114 billion, 2005-2006)–coal, iron ore, non-monetary gold, crude petroleum, and bovine meat. Major markets
Japan, China, South Korea, U.S. ($7.3 billion), New Zealand.

Imports ($125 billion, 2005-2006)–passenger motor vehicles, crude petroleum, computers, medicaments, and telecommunications equipment.

Major suppliersChina, U.S. ($17.1 billion), Japan, Singapore, and Germany.

People:

Australia’s aboriginal inhabitants, a hunting-gathering people generally referred to today as Aboriginals and Torres Straits Islanders, arrived more than 40,000 years ago. Although their technical culture remained static–depending on wood, bone, and stone tools and weapons–their spiritual and social life was highly complex. Most spoke several languages, and confederacies sometimes linked widely scattered tribal groups. Aboriginal population density ranged from one person per square mile along the coasts to one person per 35 square miles in the arid interior. When Capt. James Cook claimed Australia for Great Britain in 1770, the native population may have numbered 300,000 in as many as 500 tribes speaking many different languages. The aboriginal population currently numbers 455,031, representing about 2.3% of the population. Since the end of World War II, the government and the public have made efforts to be more responsive to aboriginal rights and needs.

Immigration has been a key to Australia’s development since the beginning of European settlement in 1788. For generations, most settlers came from the British Isles, and the people of Australia are still predominantly of British or Irish origin, with a culture and outlook similar to those of Americans. However, since the end of World War II, the population has more than doubled; non-European immigration, mostly from the Middle East, Asia, and Latin America, has increased significantly since 1960 through an extensive, planned immigration program. From 1945 through 2000, nearly 5.9 million immigrants settled in Australia, and about 80% have remained; nearly three out of every 10 Australians are foreign-born. Britain and Ireland have been the largest sources of post-war immigrants, followed by Italy, Greece, New Zealand, and the former Yugoslavia.

Australia’s humanitarian and refugee admissions of about 12,000 per year are in addition to the normal immigration program. In recent years, refugees from Africa, the Middle East, and Southwest Asia have comprised the largest element in Australia’s refugee program.

Although Australia has scarcely more than three people per square kilometre, it is one of the world’s most urbanized countries. Less than 2.5% of the population lives in remote or very remote areas.

Cultural Achievements:

Much of Australia’s culture is derived from European roots, but distinctive Australian features have evolved from the environment, aboriginal culture, and the influence of Australia’s neighbours. The vigour and originality of the arts in Australia–films, opera, music, painting, theatre, dance, and crafts–are achieving international recognition.

Australian actors such as Nicole Kidman, Rachel Griffiths, Cate Blanchett, Geoffrey Rush, Paul Hogan, Hugh Jackman, and Heath Ledger have achieved enormous popularity in the United States. Australian movies and directors such as Peter Weir and Philip Noyes, the conductor Sir Charles Mackerras, and singers such as Olivia Newton-John, children’s musicians The Wiggles, AC/DC, Dame Joan Sutherland, Dame Nellie Melba, and Kylie Minogue, also are well known.

Australia has had a widely respected school of painting since the early days of European settlement, and Australians with international reputations include Sidney Nolan, Russell Drysdale, Pro Hart, and Arthur Boyd. Writers who have achieved world recognition include Thomas Keneally, Colleen McCullough, Nevil Shute, Morris West, Jill Ker Conway, Peter Carey, Robert Hughes, Germaine Greer, and Nobel Prize winner Patrick White.

History:

Australia was uninhabited until stone-culture peoples arrived, perhaps by boat across the waters separating the island from the Indonesia archipelago more than 40,000 years ago. Portuguese, Spanish, Dutch, and English explorers observed the island before 1770, when Captain Cook explored the east coast and claimed it for Great Britain (three American colonists were crew members aboard Cook’s ship, the Endeavour).

On January 26, 1788 (now celebrated as Australia Day), the First Fleet under Capt. Arthur Phillip landed at Sydney, and formal proclamation of the establishment of the Colony of New South Wales followed on February 7. Many but by no means all of the first settlers were convicts, many condemned for offences that today would often be thought trivial. The mid-19th century saw the beginning of government policies to emancipate convicts and assist the immigration of free persons. The discovery of gold in 1851 led to increased population, wealth, and trade.

The six colonies that now constitute the states of the Australian Commonwealth were established in the following order: New South Wales, 1788; Tasmania, 1825; Western Australia, 1830; South Australia, 1836; Victoria, 1851; and Queensland, 1859. Settlement had preceded these dates in most cases. Discussions between Australian and British representatives led to adoption by the British Government of an act to constitute the Commonwealth of Australia in 1900. Since Federation, the Commonwealth Government has established two self-governing territories: the Northern Territory, 1978; and the Australian Capital Territory (where the national capital, Canberra, is located), 1989.

The first federal Parliament was opened at Melbourne in May 1901 by the Duke of York (later King George V). In May 1927, the seat of government was transferred to Canberra, a planned city designed by an American, Walter Burley Griffin. The first session of Parliament in that city was opened by another Duke of York (later King George VI). Australia passed the Statute of Westminster Adoption Act on October 9, 1942, which officially established Australia’s complete autonomy in both internal and external affairs. Its passage formalized a situation that had existed for years. The Australia Act (1986) eliminated the last vestiges of British legal authority.

Government:

The Commonwealth government was created with a Constitution patterned partly on the U.S. Constitution, although it does not include a “bill of rights”. The powers of the Commonwealth are specifically defined in the Constitution, and the residual powers remain with the states. Proposed changes to the Constitution must be approved by the Parliament and the people, via referendum, in order to take effect.

Australia is an independent nation within the Commonwealth. Queen Elizabeth II is the head of state and since 1973 has been officially styled “Queen of Australia.” The Queen is represented throughout Australia by a governor general and in each state by a governor.

The federal Parliament is bicameral, consisting of a 76-member Senate and a 150-member House of Representatives. Twelve senators from each state are elected for 6-year terms, with half elected every 3 years. Each territory has two senators who are elected for 3-year terms. The members of the House of Representatives are allocated among the states and territories roughly in proportion to population. In ordinary legislation, the two chambers have coordinate powers, but all proposals for appropriating revenue or imposing taxes must be introduced in the House of Representatives. Under the prevailing Westminster parliamentary system, the leader of the political party or coalition of parties that wins a majority of the seats in the House of Representatives is named prime minister. The prime minister and the cabinet wield actual power and are responsible to the Parliament, of which they must be elected members. General elections are held at least once every 3 years; the last general election was in October 2004.

Each state is headed by a premier, who is the leader of the party with a majority or a working minority in the lower house of the state legislature (Queensland is an exception, with a unicameral parliament). Australia’s two self-governing territories have political systems similar to those of the states, with unicameral assemblies. The territories are headed by Chief Ministers who are the leader of the party with a majority or a working minority in the territories’ legislature. Australia’s 673 local councils assist in the delivery of services such as roads maintenance, sewage and the provision of recreational facilities.

At the apex of the court system is the High Court of Australia. It has general appellate jurisdiction over all other federal and state courts and possesses the power of constitutional review.



Principal Government Officials:

Governor General–Maj. Gen. (Ret.) Michael Jeffery
Prime Minister–John W. Howard
Deputy Prime Minister–Mark A.J. Vaile
Foreign Minister–Alexander Downer
Defence Minister–Brendan J. Nelson

Political Conditions:

Three political parties dominate the centre of the Australian political spectrum. The Liberal Party (LP), nominally representing urban business interests, and the Nationals, nominally representing rural interests, are the more conservative parties. The Australian Labour Party (ALP) nominally represents the trade unions and left-of-centre groups. The ALP, founded by labour unions, traditionally had been moderately socialist in its policies and approaches to social issues. Today, it is a best described as a social democratic party. All political groups are tied by tradition to domestic welfare policies offering extensive social welfare programs. Over the last decade, Australia’s social welfare system has increased assistance to families while imposing obligations on those receiving unemployment benefits and disability pensions. There is strong bipartisan sentiment on many international issues, including Australia’s commitment to its alliance with the United States.

The Liberal /National coalition came to power in 1996, ending 13 years of ALP government and electing John Howard Prime Minister. Re-elected in October 1998, November 2001, and October 2004, the coalition now holds 87 seats (75 Liberal/12 National) in the House of Representatives, against 60 for the ALP, and 3 independents. Currently, in the Senate, the coalition holds a majority with 39 seats in the 76-seat chamber, against 28 for the ALP, 4 for the Australian Democrats, 4 for the Australian Greens, and 1 for the Family First party.

Howard’s centre-right coalition moved quickly to reduce federal government debt and the federal budget deficit, decrease the influence of organized labour, realign the immigration program to better attract skilled labour, and reform Australia’s tax and social welfare systems. The Howard government, building on the economic reforms begun by the ALP governments of Robert Hawke and Paul Keating, also has accelerated the pace of privatization, beginning with the government-owned telecommunications corporation and introducing policies to deter illegal immigration and people-smuggling. The Howard government has continued the foreign policy of its predecessors, stressing relations with four key countries: the United States, Japan, China, and Indonesia. The Howard government strongly supports U.S. engagement in the Asia-Pacific region and has sent troops as part of the coalitions in Afghanistan and Iraq. National elections will likely take place in late 2007.

Economy:

Australia’s advanced market economy is dominated by its services sector (72% of GDP), yet it is the agricultural and mining sectors (8% of GDP combined) that account for the bulk (52%) of Australia’s exports. Australia’s comparative advantage in the export of primary products is a reflection of the natural wealth of the Australian continent and its small domestic market; 21 million people occupy a continent the size of the contiguous United States. The relative size of the manufacturing sector has been declining for several decades, but has now steadied at around 10% of GDP. Australia currently enjoys a record-high terms-of-trade (TOT) that is 30% above its long-run average, reflecting the rise in global commodity prices created by booming demand in China and the drop in prices for imports for manufactured goods, mainly from China

Since the 1980s, Australia has undertaken significant structural reform of its economy and has transformed itself from an inward-looking, highly protected and regulated marketplace to an open, internationally competitive, export-oriented economy. Key economic reforms included unilaterally reducing high tariffs and other protective barriers to free trade, floating the Australian dollar, deregulating the financial services sector, including liberalizing access for foreign banks, increasing flexibility in the labour market, reducing duplication and increasing efficiency between the federal and state branches of government, privatizing many government-owned monopolies, and reforming the taxation system, including introducing a broad-based Goods and Services Tax (GST) and large reductions in income tax rates.

Australia is now in its 16th year of uninterrupted economic expansion and enjoys a higher standard of living than any G7 country other than the United States. Australia’s economic standing in the world is a result of a commitment to best-practice macroeconomic policy settings including the delegation of the conduct of monetary policy to the independent Reserve Bank of Australia, and a broad acceptance of prudent fiscal policy where the government aims for fiscal balance over the economic cycle. The Australian Government has zero net debt and, through the “Future Fund”, is building a net asset position to deal with future liabilities resulting from an aging population. The Australian economy is expected to grow at around 3.5% in 2007.

Two issues, national infrastructure and climate change, currently dominate thinking about economic policy in Australia. The Australian economy is booming and is operating at close to capacity with unemployment at a 32-year low of 4.2%. Both the federal and state governments have recognized the need to invest heavily in water, transport, ports, telecommunications, and education infrastructure to expand Australia’s supply capacity. Australia may be coming out of the severe drought conditions it has experienced over the last 5 years, and above-average rainfall has been predicted for 2007. This should somewhat reduce the intense economic and political pressure on governments to build dams, water-recycling facilities, and desalination plants in drought-affected cities such as Brisbane, Canberra, and Perth.

The second significant issue is climate change. A recent report commissioned by the Prime Minister recommended a domestic carbon emissions trading scheme. It also recommended that Australia take an active role in developing a future global carbon emissions trading system. Regardless of the outcome of the federal election due in late 2007, Australia is now committed to adopting a domestic carbon trading system in the 2010-2012 timeframe.

The Australia-U.S. Free Trade Agreement (AUSFTA) entered into force on January 1, 2005. The AUSFTA marks the first FTA the U.S. has concluded with a developed economy since the U.S.-Canada FTA in 1988. Australia has also completed FTAs with Singapore and Thailand and is pursuing other FTAs, including with China and Japan. A burgeoning trade relationship marked by ongoing, multi-billion dollar resource export contracts and rising manufactured imports has driven FTA negotiations with China. Parallel efforts are underway with Malaysia and the Association of Southeast Asian Nations (ASEAN). The Australian Government has restated its commitment to achieving high-quality FTAs with economies in the Asia-Pacific.