Archive for August, 2009
August 31, 2009 at 2:39 pm · Filed under Globalisation, Australia
This month Australia signed the largest trade deal in its history - a natural gas export contract valued at US$41 billion. The Gorgon Project is being brought to life by Chevron and ExxonMobil. Prime Minister Kevin Rudd said the full project would create 6,000 jobs and cost AU$50 billion. By 2014 when the project is on-line Australia will surpass Qatar as the world’s leading exporter of natural gas. Some economists predict the economic injection of Gorgon Project to exceed the multi-billion Federal intervention in the economy.
It’s great news for the economy - and provides wonderful quotes for politicians:
“This unprecedented export deal confirms Australia’s importance as a global energy superpower supplying vital clean energy resources and technologies to China and our other Asia-Pacific trading partners,” Resources Minister Martin Ferguson said. (Source: Agence France Presse)
It’s also good news for economies in Asia. Australia’s proximity means shorter shipping times and no need to pass through conflict zones in the Middle East. For Australians the sheer scope of the project is hard to fathom. Considering oil and gas analysts also find the scale staggering it is no wonder:
Asian demand for coal and iron ore have helped Australia’s economy avoid recession during the global downturn but State One Stockbroking analyst Peter Kopetz said LNG was the next boom commodity. The gas is liquefied for shipping abroad, where it is turned back into gas and distributed via pipeline.
“The numbers are phenomenal. When you look at them it’s mind-boggling,” he said. “It’s going to be LNG boom times.”
Australia exported 15.2 million tonnes of LNG worth 5.2 billion dollars in 2006, a figure the government estimates will quadruple to 60 million tonnes by 2015 if all currently planned projects proceed. (Source: Agence France Presse)
The challenge remains, though, for politicians and others guiding the economy. With robust growth planned from minerals and now gas, Australia will continue to have a two-gear economy. Our commodity exports will be trebling in volume and value, while the “old economy” of services and manufacturing will fight to stay competitive. With billions pumped into the economy due to gas exports, it will be hard to keep interest rates at reasonable levels.
So while Australia may become “the Middle East of Gas” it doesn’t mean every Aussie will be flying first class to buy the latest season’s clothing at Harrods.
August 31, 2009 at 10:40 am · Filed under China, Globalisation, Australia
Foreign direct investment (FDI) into Australia continues to grow. “From innovation to a highly educated and multicultural workforce Australia is a globally competitive location for business,” according to Austrade - the Australian government department responsible for attracting investors. Add to that a stable government, secure legal system, great infrastructure, competitive tax environment and high quality of life and you understand why companies want to invest in Australia.
As of 31 December 2008, the stock of inward FDI in Australia was A$392.9 billion. The top four source countries were the United States, the United Kingdom, Japan and the Netherlands. (Source:Austrade)
Australia’s top exports are minerals and resources, and given our location adjacent to Asia Pacific we’ve become a provider of choice for iron ore and other commodities. We are more competitive in terms of shipping times than Canada or Brazil, two significant resource competitors.
Notably absent from the listing of top countries investing in Australia is China. That said there has been no shortage of investments from China, particularly from resource companies. Austrade’s fact sheet on how it helped inward investment into resources has six case studies - four are from China.
This weekend Aquila Resources announced a $285.6 investment by China’s biggest steelmaker, Baosteel. This follows on the heels from the failed investment bid by Chinalco for US$19.5 billion in Rio Tinto. And while is is reassuring to see nearly $300 million invested by Baosteel, the scale of the failed US$19 billion deal is overwhelming.
It appears small deals are acceptable - but major transactions flounder. Why? Probably because it is not politically acceptable for the Government of Australia to approve large-scale investments by state-run enterprises from China. Australians are scared of China and don’t want their politicians to approve these transactions.
For China the road forward is a long one - but an easy journey is possible. There have always been massive differences between the East and the West. Yet through assimilation and education these differences are better understood. Generally we do not fear what we understand.
While China made a great start with the 2008 Olympics, a wide-scale education and cultural exchange program will help in Australia. That would include the standards of scholarships, cultural exchanges and trade delegations. But the heartland of Australia is large - and not likely to travel to the National Gallery for an exhibition of clay soldiers. Instead greater use of mass media would help - whether it’s the reality series of “Wife Swap” between families in Sichuan and Sylvania Waters or “Super Nanny” takes on spoiled boys in Foshan.
We need to see that the daily struggles and challenges faced by families in Australia and China are the same. Then we can cheer the progress made by the new-found celebrity families from China as they get together to grill bean curd or corn cobs on an Aussie barbecue. Then we’ll know and accept and adore China all the more.
August 28, 2009 at 10:15 am · Filed under Australia
In a global study on gender equality, Australia rated #5 amongst the most equal countries (Sweden was #1, followed by Denmark, Norway, Finland then Australia - which tied with the Netherlands as equal fifth). The USA was #9 and the UK #10. Indicators to measure equality included income, parliamentary representation, control of household income, and tertiary education. It is great to see Australia so high in the rankings. (See today’s The Australian.)
Concurrent with the study was a survey by Boston Consulting Group. This global poll asked female respondents how they ranked gender equality. In this survey Australian women believed there was less equality than in the study looking at demographic and societal issues.
Australian women feel less equal than the study suggests.
In the survey of women, Australia ranked #11. Top of the list of “perceived equality” was the United Arab Emirates. Sadly the Emirates didn’t reach the top 20 list of countries based on real indicators. Women in Turkey placed themselves as ’somewhat equal’ - ranking #9 - whereas the indicators placed the country #20.
When describing this anomaly - where perceived equality was lower than indicators of equality suggested - study sponsor Boston Consulting Group believed the perception lagged reality because we are acutely aware of the differences:
”Because we are relatively egalitarian compared with many other countries, we may be more acutely aware of our remaining inequalities,” BCG partner James Goth said. “And I think we do have a view here that because so few women manage to penetrate into positions of power — people like Gail Kelly, Julia Gillard, Quentin Bryce and Anna Bligh are seen as the exception — this flows through into women’s perceptions that they are yet to crack it in terms of equality.” (Source: Stephen Lunn, Social affairs writer, The Australian)
I wish I’d paid more attention in maths class as I’d be able to recall this theory’s name - if you divide the distance between yourself and a goal by half each time, you will never reach the destination. You may be millimetres away and never arrive.
I do not suggest Australia is millimetres away from gender equality - there is enormous room for improvement. Yet it seems to follow that the closer we get to equality, the larger the differences appear. I like the fact that gender inequalities are recognised and highlighted. It means as a nation we’ll work all the harder to eradicate them.
August 27, 2009 at 4:41 pm · Filed under Social Media
This week I meet with senior bankers in Sydney to review case studies of best practice in social media. Specifically they were interested in how other financial institutions were making use of Facebook, Twitter, Blogs and other engagement tools.
Thanks to Linked In, I was able to source a wide range of programs. Some are great - the “Change Everything” Forum run by Vancity in Canada is exceptional. Here you sign up with an agreement to change something - be it your hair colour or childhood poverty. You build a supportive community to help facilitate that change.
Capital One in America also has a great program called Slingshot. This is a network of small business owners and consumers. It allows consumers to shop local and support small businesses.
On Twitter my favourite is ING Direct. They have an irreverent, fresh tone that’s still aligned with their business:
We hear lingerie mannequins don’t qualify you for the Car Pool Lane. Anyone care to share some money & time saving transportation tips? (Source: ING Direct)
In the end I had to parse the numerous case studies and focus on the best. I am looking forward to presenting this tomorrow afternoon. Any input in advance would be most gratefully received!
Check it out on Slide Share.
August 26, 2009 at 11:19 am · Filed under Social Media
You know that dream where you’re in an important meeting and everyone else has clothes on? (Please, chime in with assent as I feel very vulnerable having just shared that with you.) Phew! Pleased to hear I’m not the sole neurotic in the on-line community.
In their ground-breaking blog and book on connecting via social media, authors Robert Scoble and Shel Israel describe blogging as “Naked Conversations“. They equate the open, transparent connection between bloggers and their readers as the equivalent to conversing naked. (Just this week Israel launched a new book – “Twitterville“).
The concept of “naked” extends across all aspects of social media. And yes, a company needs to open up when engaging in social media.
But recently I’ve had to take my own advice (gulp).
A company I have long admired has a need for someone with skills like mine for a role here in Sydney. And while I enjoy running my own business, I believe if a role interests you it makes sense to pursue the spot.
Yet I’ve also been an advocate of life on-line. WallyDownUndy has been running for two years. I have my high school and college friends, along with relatives and close friends, all on Facebook. I Tweet, Therefore I am (http://twitter.com/PercepCounsel). And I share all my presentations on SlideShare.
So when I was asked to provide a CV (or résumé in America) I hesitated. A CV seemed so…2001. Instead I made sure my profile on LinkedIn was up-to-date, and I asked past colleagues and managers to provide references. In my discussion with senior professionals from the company yesterday, I was extremely relieved to hear one had reviewed me on LinkedIn.
It takes courage to live your life on-line and to provide your past in an open forum. Much like the dream, if you’re afraid when you dream of being naked it means you have something to hide. If you dream of being naked and no one else notices it means your fears are unfounded. Better yet – if you dream you’re naked and you’re quite proud of the fact it means you have nothing to hide:
“You have nothing to hide and are proud of who you are. The dream is about a new sense of honesty, openness, and a carefree nature.” (Source: DreamMoods.com)
Now if you’ll excuse me I must get back to that dream…
August 24, 2009 at 3:30 pm · Filed under Leadership
The 2009 Trust Survey was issued by the embattled Readers Digest magazine (under bankruptcy protection in America but still powering on in Australia). In it we see a continuation of an old theme. We the people of Australia place at the top of our “most trustworthy” list people in emergency services and medical professions:
- Ambulance officers
- Firefighters
- Nurses
- Pilots
- Pharmacists
- Doctors
- Veterinarians
Teachers round out the Top Ten. It isn’t until you hit #20 that a suit and tie is seen (or wig and gown) – as Judges hold that spot.
If you keep dropping further down the list of the Most Trusted Professions you see Hairdressers (#22) and Domestic Cleaners (#25).
Pop Quiz: Who is more trusted than a mechanic (#29) and less trusted than a bartender (#27)? That would be a Financial Planner (#28)!
I have a natural curiosity for the morbid – so of course I immediately honed in on the bottom of the list. Telemarketers (#40), car salesmen (#39) and politicians (#38) are at the bottom.
But bumping near the bottom of the list is the ignoble CEO (#34). They are squeezed between professional footballers (#33) and sex workers (#35). (Apologies I searched for a better verb than squeezed but couldn’t find it.)
Considering we’ve lost professional footballers to excessive drink, domestic assault, drug abuse and accusations of gang rape it’s odd to see them listed as more trustworthy than a CEO.
It shows the depths businesses have sunk to – and the fact it will take a long, long time for CEOs to climb the rungs. While they may never be as trusted as a farmer (#9) perhaps they can aim for chefs (#21). After all, foul-mouthed celebrity chef Gordon Ramsay may make it easier for the CEOs of Australia to unite and re-build their reputations.
Let’s just hope the sex workers don’t beat them to it…
August 21, 2009 at 12:34 pm · Filed under America, Australia
The first time I visited Dr David Baker I was taken aback by how modest his offices were. The surgery was located on the second floor above a bakery in Darlinghurst (an area of Sydney). His reception area had the same old publications. His receptionists were professional and polite. In all it was a modest operation.
In New York I’d grown accustomed to well-appointed medical offices. Artwork and flat-screen televisions were in reception. And the consulting rooms seemed to have quite a lot of new equipment.
In Australia, we have socialized medicine (see my earlier posting). Medicare cards are all you need to see almost any doctor. (Some doctors do charge a “gap” payment, especially on weekends, after-business-hours or for a home visit [Yes, home visits by doctors still happen in Australia]).
So a doctor’s wage in Australia is fair – placing most medical practitioners in the middle class. According to MD Salaries, a general practitioner in Australia earns US$1500 per week – or $78,000 per year. In the USA that same doctor earns on average $266,000.
Perhaps medical practitioners in the USA are against changes to medical insurance, as they seem to have a lot to lose.
August 20, 2009 at 4:42 pm · Filed under America, Australia
Today the US news is dominated by debate on government-provided medical services. As an American in Australia I can provide insights and commentary on the system in the USA and here in Australia – where medical services were nationalized years ago.
In short – if America ever came close to Australia’s system, it would be a significant improvement. In Australia healthcare is accessible, affordable and really easy. There are no medical bureaucrats or “death panel”. (Thanks Sarah Palin for adding intelligently to the debate – NOT!)
As background, I moved to Australia in 1990, and while I’ve had other postings around the world, I’ve called Sydney my home for 11 years. In-between the first and most recent time in Australia I was back in the USA for five years.
Healthcare in Australia is easy. Citizens and permanent residents receive a Medicare card allowing free access to most healthcare practitioners. Have the flu? See your doctor, swipe your Medicare card, sign and leave. Same with services at public hospitals.
We also carry private medical insurance ($220 per month for a family of three). This would allow a private room in a private hospital – and our choice of surgeons. More often it gets us discounted chiropractic services or visits to a nutritionist.For 95% of our medical services we rely on the government via Medicare. That includes discounted prescriptions – such as Enbrel for chronic psoriasis. This costs $32 per month. Without government support it would cost $1,300.
In the USA I had private insurance through Ford Motor Company. This allowed access to all doctors and services. Yet when I left Ford and kept my insurance through COBRA it cost $1,600 per month for a family of three.
Before relocating to Sydney in 2005 we visited with our then-two-year old son. He had a recurring fever so we visited the local doctor. As we didn’t have Medicare he charged the full rate - $45. When we got back to New York City my son’s pediatrician conducted follow-up tests. I signed her submission to my insurance company – for $1,900.
Living in Sydney my total taxes are equivalent to when I lived in New York. Here we pay only Federal taxes – not at the state and city level. Yet while the tax levy is equivalent I feel, through Medicare, that I gain a whole lot more.
I’d be happy to continue adding to the discussion on medical costs in Australia versus America.
In short, America – get with the program!
August 19, 2009 at 12:12 pm · Filed under more on me
Apologies readers - the Global Pandemic has hit home, as I’ve been diagnosed with Swine Flu. I knew that pork cutlet tasted off!
Back in action no later than Friday…
August 13, 2009 at 11:49 am · Filed under Social Media, Uncategorized
One day we’ll look back to these as the salad days of social media - the time of simple mistakes and youthful innocence.
Salad Days (n): A time of youth, innocence, and inexperience: “my salad days,/When I was green in judgment, cold in blood” (Shakespeare).
We’re taking our best friends and mixing them with social acquaintances. On Facebook I blend people who went to university with me and my close family members. On LinkedIn I have colleagues, clients, direct reports, bosses and business friends all sitting alongside each other.
Yet at times we forget who is in the salad.
I like the youth and bravado displayed in the first post. Who hasn’t complained about their boss? It’s one of our rights! Yet most of us are smart enough to wait until he or she is out of the room.
But once your boss is a friend on Facebook, there is no “out of the room”.
I also like the panache displayed by the man ”formerly known as boss”. He doesn’t mince words (nor did he mince around the office, apparently).
It takes a certain energy, confidence and commitment to live your life on-line. I have a company evaluating me for some work. I’ve only provided my profile on Linked In, my blog and my Tweets - along with the odd email or two.
Recommendation #1? Live as if you’re always on display…
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