PM's plan to 'Asianise' Australia

Asia expert Andrew MacIntyre says the Asian Century white paper is a good start – but the government must follow through.

JULIA Gillard has outlined an ambitious plan to "Asianise" the Australian economy and education system to tap into the vast middle-class markets that will emerge in China, India and Indonesia in the next two decades.

The vision, much of which is already underway, includes plans to free up tourist and business travel within the region, to lift Australia's tax-free threshold "to at least $21,000", to scrap inefficient state taxes such as stamp duty and to have Australian schools engage with at least one Asian school to promote language learning.

It would also provide Australian students with continuous training in Chinese, Hindi, Indonesian or Japanese throughout their schooling.

As part of the cultural refocusing, the ABC and SBS would be asked to provide more extensive coverage of the region "in all aspects of their content and programming, with special attention to news and information coverage".

Unveiling her long-awaited Asian Century white paper in Sydney, the Prime Minister declared "history asks great nations great questions - Australia is no exception".

She said the world was moving eastward to Australia's advantage and our location and high living standards would provide a valuable edge.

Australian Prime Minister Julia Gillard speaks during the release of the Government's White Paper on "Australia in the Asian Century", at the Lowy Institute in Sydney. Picture: AFP

"For the first time in our history, Asia is not a threat to our high-skill high-wage road. It is a reason to stay on it, " she said.

Accordingly, the paper lays down long-term targets designed to boost national income, dramatically lift productivity, propel the education system into the global top five and "deeply integrate" economic links with Asia driving Australia's intra-regional trade to constitute "at least one-third of GDP, up from one-quarter today".

Opposition Leader Tony Abbott said the Opposition "broadly welcomed" the paper, which constituted mainly "predictable common sense".

He said it appeared, however, that the Government was playing catch-up with the Opposition, which had always argued for a policy emphasis of "more Jakarta and less Geneva".

Among the few immediate initiatives is a commitment to provide 12,000 Australia Awards (Asian Century) Scholarships for studies here and in the region in the next five years.

Prime Minister Julia Gillard says Asia's wealth should drive a profound change in our thinking about our economic relationship with the region. Picture: AFP

There also is a goal of elevating 10 Australian universities into the world's top 100 universities by 2025.

The Government wants the white paper to lead a transformation of Australia's mostly commodity-based export approach, toward a high-wage, high-skills service-based economy.

Ms Gillard said this was needed to meet growing Asian demands for education and technical expertise driven by the region's exploding middle classes.

Employers groups including the National Farmers' Federation welcomed the white paper.

"Today, the important role for farmers in providing food, fibre, knowledge and expertise to the Asian region and, the challenges we must overcome to succeed in doing so, have been recognised," said the NFF's Jock Laurie.

Prime Minister Julia Gillard (centre) along with former Treasury secretary Ken Henry (left) and Frank Lowy, after delivering the white paper. Picture: Dan Himbrechts

But the Opposition's Julie Bishop dismissed it as disappointing and merely ''a grab-bag'' of existing government policies put together by Labor spin-doctors.

She said it appeared that the rigorous work of former Treasury head Ken Henry had been rewritten by Labor insiders to reflect government policy.

BY 2025 ...

EDUCATION: Children will graduate from high school with a working knowledge of Asia and every Australian university will be encouraged to send students to universities in Asia, to ensure the next generation's leaders are Asia-literate.

BUSINESS: Australia will be in the world's top five when it comes to ease of doing business after a National Productivity Compact with the states and territories, focused on regulatory and competition reform.

Opposition Leader Tony Abbott at Parliament House in Canberra today. Picture: Gary Ramage

INFRASTRUCTURE: Infrastructure needs will be planned at least 20 years ahead and the National Broadband Network will reach across Australia, giving access to all corners of the Asian region.

AGRICULTURE: Producers and processors will be globally renowned as competitive, innovative and sustainable suppliers of high-quality food and agricultural products to Asia.

TRADE: Trade with Asia will increase from one-quarter to one-third of Australia's gross domestic product.

ENVIRONMENT: Australia will be a world leader in sustainable food production, energy, water use and biodiversity conservation.

TOURISM: Work and holiday agreements will be expanded and tourists will find it easier to get a visa, with a focus on attracting Chinese travellers.

Former Australian prime minister Bob Hawke (centre) arriving to listen to current Prime Minister Julia Gillard release the Asian Century white paper. Picture: AFP

DEFENCE: Trust and co-operation will be built in the region, supporting Asia's role in global order, and Australia's strong alliance with the US will be maintained for regional stability.

PUBLIC SECTOR: One third of the board members of Commonwealth bodies and one-third of senior leaders in the Australian Public Service will have deep experience in Asia.

REGIONAL AUSTRALIA: State and local governments will be diversifying their economic bases and making their own trade links with Asian counterparts.

Former Prime Minister Bob Hawke congratulates Prime Minister Julia Gillard after she delivered the white paper. Picture: Dan Himbrechts

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