Australia’s Economic Success: A Lucky Country?
Australia is an island nation with a successful economy, ranked 4th in the Global Wealth Report 2022. Its wealth is attributed to its natural resources, including iron ore, coal, gas, and gold. The country has experienced a mining boom, driven by high global demand, particularly from China.
The mining boom has increased Australian living standards, raised real per capita household disposable income, and lowered the unemployment rate. However, it has also led to a large appreciation of the Australian dollar, which has negatively impacted other industries exposed to trade, such as manufacturing and agriculture.
Australia’s economic success can be attributed to its well-established regulatory frameworks, diversified economy, and immigration policy. The country has a strong agricultural, manufacturing, and service sector, and its immigration policy has contributed to a faster-growing population, which has underpinned economic growth.
Despite its success, Australia’s economy faces risks, including low productivity growth, reliance on Chinese demand for iron ore, and a lack of diversification and sophistication. The country’s geography also poses challenges, including high transportation costs and isolation from major economic blocs.
Australia’s housing market is also a concern, with high prices and a lack of affordability. The country’s fascination with property has led to speculation, and the market is driven by domestic and foreign demand, high construction costs, and restrictive planning rules.
The country’s economic strategy is heavily reliant on selling houses and extracting resources, which masks a serious failure of national strategy. Australia needs to diversify its economy, invest in industries and skills, and develop a vision for its future to ensure long-term economic growth and stability.
| Term | Definition | Example Usage |
|---|---|---|
| Appreciation | The increase in value or price of something, such as a currency or an asset. | The Australian dollar has appreciated significantly due to the mining boom. |
| Diversification | The process of spreading investments, industries, or activities across different areas to reduce risk. | Australia’s economy needs to diversify beyond its reliance on natural resources. |
| Economic Bloc | A group of countries that have a formal agreement to reduce trade barriers and increase economic cooperation. | Australia’s isolation from major economic blocs poses challenges for its economy. |
| Immigration Policy | A government’s rules and regulations regarding the entry and residence of foreign nationals. | Australia’s immigration policy has contributed to a faster-growing population and economic growth. |
| Isolation | The state of being physically or geographically separated from others. | Australia’s geography poses challenges due to its isolation from major economic blocs. |
| Lucky Country | A phrase used to describe a country that has experienced significant economic success and prosperity. | Australia is often referred to as a “lucky country” due to its natural resources and economic success. |
| Productivity Growth | The increase in the amount of goods and services produced per hour of work. | Australia’s economy faces risks due to low productivity growth. |
| Regulatory Frameworks | A set of rules and regulations that govern a particular industry or activity. | Australia’s well-established regulatory frameworks have contributed to its economic success. |
| Reliance | The act of depending on something or someone for support or assistance. | Australia’s economy is heavily reliant on selling houses and extracting resources. |
| Sophistication | The state of being advanced or complex in a particular field or industry. | Australia’s economy lacks sophistication and diversification. |
Australia’s Economic Success: A Lucky Country?
What is attributed to Australia’s wealth?
What has led to a large appreciation of the Australian dollar?
What is a concern in Australia’s housing market?
What does Australia need to do to ensure long-term economic growth and stability?
What has contributed to a faster-growing population in Australia?
Answer Key
1. Its natural resources, including iron ore, coal, gas, and gold
2. The mining boom driven by high global demand
3. High prices and a lack of affordability
4. Diversify its economy, invest in industries and skills, and develop a vision for its future
5. Its immigration policy
The Use of the Passive Voice in Describing Causes and Effects
| The passive voice is often used to describe causes and effects, particularly in formal or academic writing. It allows the writer to focus on the action’s recipient rather than the doer. In the text, the passive voice is used to explain the consequences of the mining boom, such as “Australian living standards have been raised”, “the unemployment rate has been lowered”, and “other industries have been negatively impacted”. This grammatical structure helps to emphasize the effects of the boom on the economy and the population. |
|---|
Choose the correct sentence that uses the passive voice to describe a cause-and-effect relationship:
1. The mining boom has increased Australian living standards.
A) The mining boom has increased Australian living standards.
B) Australian living standards have been increased by the mining boom.
C) The mining boom is increasing Australian living standards.
D) Australian living standards are increasing due to the mining boom.
2. The high global demand for iron ore has driven the mining boom.
A) The mining boom has been driven by the high global demand for iron ore.
B) The high global demand for iron ore drives the mining boom.
C) The mining boom is driven by the high global demand for iron ore.
D) The high global demand for iron ore is driving the mining boom.
3. The Australian dollar has been negatively impacted by the mining boom.
A) The mining boom has negatively impacted the Australian dollar.
B) The Australian dollar is negatively impacted by the mining boom.
C) The Australian dollar has been negatively impacted by the mining boom.
D) The mining boom negatively impacts the Australian dollar.
4. The country’s economy has been underpinned by its immigration policy.
A) The country’s immigration policy has underpinned its economy.
B) The country’s economy is underpinned by its immigration policy.
C) The country’s economy has been underpinned by its immigration policy.
D) The country’s immigration policy underpins its economy.
5. The country’s housing market is driven by domestic and foreign demand.
A) Domestic and foreign demand drive the country’s housing market.
B) The country’s housing market is driven by domestic and foreign demand.
C) Domestic and foreign demand are driving the country’s housing market.
D) The country’s housing market drives domestic and foreign demand.
Answer Key:
1. B) Australian living standards have been increased by the mining boom.
2. A) The mining boom has been driven by the high global demand for iron ore.
3. C) The Australian dollar has been negatively impacted by the mining boom.
4. C) The country’s economy has been underpinned by its immigration policy.
5. B) The country’s housing market is driven by domestic and foreign demand.
