Governing for the Future

For all of its shortcomings Australia has enjoyed close to 125 years of parliamentary democracy. There have been many policy failures since federation in 1901. Sometimes it seems that the oppositional nature of the Westminster system thwarts progress on key policy issues.

Recent developments in the US have raised alarm bells across all democracies. The arbitrary use of executive powers to override democratic institutions is of great concern.

In Australia we need to preserve and respect our government institutions at all levels. We need reform in many ways and the only way to move away from oppositional politics towards a more collaborative approach is to conduct a major whole of government review. A review that looks at and evaluates the effectiveness of alternate models for democracy. Europe and Scandinavia are good starting places for such a review.

Changes to the way our parliamentary systems works would require changes to the Constitution via referendum. Very difficult to achieve but it might be time to look at these foundational issues.

For further discussion see: Democracy Under Threat

Strategic Thinking in an Uncertain World

It sometimes seems that Australia is constantly playing catch-up when it comes to major policy issues. A key social problem needs to get to crisis point before we act. The current hosing and cost of living crises are examples, not to mention waiting times at public hospitals. In many cases our think tanks and research bodies have been telling governments well in advance that a situation has the potential to emerge. Yet the reality of oppositional politics makes prevention and pro-active intervention very difficult to achieve.

Somehow we need to be harnessing the very considerable intellectual and research capability of organisations like the Australia and Grattan Institutes which are beyond party politics. This is where we need to support more collaborative approaches to policy development. Not quite in the same way that a planned economy does. But rather in an inclusive way that draws on the best expertise that the country and the world has to offer. This goes way beyond the formulation of policy priorities which the major parties put forward prior to an election.

In the mining industry a mine-life plan can look 50 or even 100 years into the future. Most of our major policy issues in Australia need that level of forward thinking.

Universal Income and Artificial Intelligence

There have been a lot of studies about the concept of a universal or basic guaranteed income for all. The results of pilot programs remain inconclusive. In 2023 Switzerland again rejected the concept.

Over the next few years the rise of artificial intelligence and robotics will see a decline in many jobs that were once the backbone of the workforce and economy. More people will be forced to look for other sources of employment and income. Not all of them will find it.

In Australia a great divide already exists with multi-generational unemployment, poverty and homelessness. The gap between the wealthy and the not so well off continues to widen. Are we going to, yet again, wait until the problem of the great AI replacement is here before acting?

We have the capacity and intelligence to formulate a strategy now. Various initiatives are already underway. What we really need to think about is providing everyone with the opportunity to participate in meaningful work that contributes to community wellbeing for which they receive a guaranteed income that enables them to live with dignity.

Executive Remuneration: A Quantum Dilemma

Toward the end of 2024 a gasp was heard around the world when the board of Tesla proposed to honour contractual arrangements with its CEO via a US $56 billion remuneration package. The deal was overturned by a Delaware court and is under appeal.

Fortunately we don’t see figures like that in Australia. Nevertheless the quantum and structure of executive remuneration in our major corporates has been a concern for governments, regulators, investors and the public for some time. As those at the top of the hierarchy become richer those at the bottom become poorer.

Whilst we can’t insulate ourselves from global trends we can take a balanced approach to the governance of executive remuneration.

The use of equity based incentives schemes has increased exponentially over the last 25 year. The prevailing rhetoric has been about aligning the financial interests of executives with shareholders. Unfortunately other stakeholders have not fared so well as multiple inquiries have found corporate misconduct to be widespread.

Governments, boards and remuneration committees have the capacity to address this imbalance right now.

The Ageing Population

In 2020 16% of the Australian population we over 65. This is expected to grow to between 21% and 23% by 2066. We’ve known this shift has been taking place for a long time. It was again detailed in the Intergenerational Report of 2024. This demographic shift has some very specific policy implications for all levels of government:

1. A greater number of Australians will rely on the Age Pension placing a greater pressure on the Budget.

2. Rental affordability is a major concern for those who do not own their own home. And even for those that do the costs associated with home ownership will continue to rise. Insurance has already become unaffordable for many.

3. The load on hospitals and the healthcare system will steadily increase as the population ages. Emergency departments are in crisis and the prospects for improvements are not looking good.

4. More will opt to remain in the paid employment longer to adequately fund their later years. This is a positive as organisations retain expertise and wisdom.

5. An older population presents the country with a considerable opportunity to make use of a volunteer workforce to undertake much needed community work.

The ageing demographic presents challenges and great opportunity for all levels of government.

Australia on the World Stage

Some of us still remember when then Prime Minister, Harold Holt, famously said in October 1966: “All the way with LBJ”. He was of course referring to the strength of Australia’s alliance with the US and our commitment to support them in the ill conceived Vietnam War.

I wonder if anyone from either side of politics would make such a statement today? Hopefully we’ve moved beyond overt “Toadying”. Our near neighbour to the east across the Tasman seems to act with autonomy and insight when it comes to international relations.

We are a small nation with a large landmass. Alliances are important for Australia to maintain defense capability. However, independent thinking is also important. We do not share the same value set as some of our alliance partners and should never compromise on issues such as indigenous recognition, universal healthcare, diversity and inclusion and a social safety net for those who struggle to survive.

The upcoming federal election presents all parties with the opportunity to demonstrate, via their policy platforms, how committed they are to Australia’s independence and capacity to chart our own course. Alliances are important. But volatility on that front makes and independent stance all the more important.