Archive for Globalisation
January 22, 2010 at 3:05 pm · Filed under America, Globalisation
If you do NOT live in Indiana and know the title of this blog is the name of a song then you’re 45 or older. More like 50. Face it – the mirror and the high school yearbook photo look like chalk and cheese. It’s sad getting old!
But if you are from Indiana then you probably hear this song blasted in the Brickyards or while cruising up from Louisville or over to Indianapolis.
And if you’re one of Jim Bright’s students at Indiana University, you can leave comments on the topics or questions you have for an “around the world – twice” public relations guy!
January 19, 2010 at 8:01 am · Filed under Globalisation, Australia
Today the export of financial services from Australia accounts for merely 3% of that sector’s overall contribution to the economy. Perhaps that strong reliance on domestic business helped shelter Australia’s finance sector from the worst of the Global Financial Crisis (GFC). In the world’s list of ten safest banks, four of them are in Australia. (Bizarrely enough we have a “four pillars” banking strategy and today have only four major banks.)
Yet compare us to London – one of the world’s leading finance centres. There the global rump of business contributes 50% of the sector’s contribution to the economy. Clearly Australia has room for growth.
Prior to the full impact of the GFC, the Ministry of Finance commissioned a report to examine Australia’s potential as a global financial centre. Also included was an examination of the regulatory framework that would be required. Are we headed the way of Lehman Brothers by unravelling our rules and regulations? Apparently not, according to Mark Johnson, former Macquarie Bank deputy chairman and architect of the report, “Australia As A Financial Centre.”
“We are not trying to build a financial system on steroids with artificial inducements,” Johnson said in today’s The Australian.
What we could expect was more banking competitiveness, an increase in financial products, and a boost to financial services jobs growth.
While it is some time before Sydney overtakes Hong Kong or Singapore as a financial centre the drive to boost our country’s importance can’t be a bad thing.
December 31, 2009 at 10:53 am · Filed under Globalisation, Australia
I can’t get family to visit me. It’s not my hospitality. My partner and I are renowned hosts. We have a spare room always on the ready and a bevy of activities for newcomers and old hands alike.
What keeps family away is the journey. From the East Coast of the USA to Sydney is approximately 24 hours travel time (perhaps longer with the new security measures going into place). There’s the flight to LAX which is really a warm-up act to the 14.5 hour flight to Sydney (six movies! four meals!).
When you come to Australia you fly over the International Date Line. If you leave on a Monday you arrive on a Wednesday. What happened to Tuesday? Hell if I know. I think you lose it – forever. (Apparently you get it back when you fly to the USA as your plane lands in LAX several hours before your take-off time/day in Sydney.
Go figure.
Tonight is a lot like flying across the date line. With the tick of a clock hand we say farewell to a year – and a decade. Time Magazine called it the “Decade from Hell”. Reflect back. Enron, September 11, Paris Hilton, Lehman Brothers, George Bush (twice). Won’t go down as my favourite years.
New Year’s Eve is a bit like an Etch-A-Sketch or absolution after confession. Your slate is clean and you get to start again. Fresh starts! New thinking! Changes to the old me!
To me it’s like a flight across the Date Line. It all seems slightly artificial. I won’t drop 5 kilos tonight or have a refreshed bank balance. I’ll wake tomorrow in the same bed with the same family. And that’s really, really okay by me. It’s good.
What tonight is good for is promoting Australia. As New Yorkers freeze in winter we’ll showcase our beautiful city and its amazing displays of fireworks.
Get ready world – Sydney gets to dash first into the new year and the new decade. Feel free to follow!
November 4, 2009 at 7:58 am · Filed under Globalisation, Australia
As an island nation Australia is bound to attract illegal immigrants via boat. Under Liberal leader John Howard mandatory detention of all refugees stemmed the flow. Under Kevin Rudd, the Labor government has softened the stance. And that’s lead to an influx of refugees.
In total the numbers are quite small. More visa over-stayers are already in the country having arrived by long-haul jet. Yet the dramatic imagery of small boats on massive seas filled with desperate people is ripe for national television.
This week the issue escalated due to a running issue and a new problem.
Today 78 refugees remain aboard an Australian Customs ship docked in Indonesian waters. They refuse to leave for fear of persecution under Indonesia’s shaky human rights regime. Another boat has 255 people seeking asylum in Australia. This is the long-running issue. Refugees have been aboard boats for three weeks.
Yesterday another boat sank in the Indian Ocean on its way to Australia. Twelve people are known to have died and another 11 are still missing. Opposition minister Tony Abbott blamed the Prime Minister for the deaths:
“You look at this terrible tragedy that’s unfolding in the Indian Ocean at the moment and you’ve got to say this is a comprehensive failure and it’s all the Prime Minister’s fault,” Abbott said in a radio interview.
Talk Radio is filled with views supporting a tougher stance – and others crying out for Australia to take responsibility for these people. By docking Australian flag ships off Indonesia and hoping to disembark their problems, the government is seeking to transfer ownership of refugees to Indonesia.
Clearly a regional approach is mandated – and Australia must play a lead role in directing policy and resettling refugees. When Hungarian children were evacuated in the 1950s amnesty by that country’s Communist regime they were greeted as heroes. When Vietnamese fled after the fall of Saigon they were welcomed – The Smithsonian Institute has one of the boats on display. Jews fleeing war-torn Germany were similarly shuffled from country to country – with one boat returned to Nazi Germany when the USA wouldn’t accept refugees.
The debate will continue for months to come. And in that period refugees will continue to attempt the water crossing to Australia. After covering rough seas in shoddy craft I hope they’re greeted with a sound policy and a welcoming government.
October 8, 2009 at 10:02 am · Filed under Globalisation, Australia
Classic film fans will recall the Peter Sellers comedy classic, “The Mouse That Roared.” In it, a backwater country long overlooked decides to enter the global stage by declaring war on the United States. This Duchy quickly becomes the centre of attention – and adventure. And of course because Peter Sellers is centre stage – in roles as diverse as a senior Minister to the Dowager Empress – the laughs are plentiful. (Trivia Note: This is Peter Sellers’ first film role and was released in 1959.)
Australia pulled off a global roar this week – it was the first developed country to raise interest rates, with a 0.25% increase by the Reserve Bank on Tuesday. The news sent stocks, gold and the Australian dollar soaring. More than $260 billion of wealth was returned to the Australian Stock Exchange on Wednesday.
Like many proud nationals, Australians love it when their country makes global news. Today’s “The Australian” features a front page from America inspired by our rate move. “The Wall Street Journal” led with the story, ‘Recovery Hopes Stir Markets’.
All this good news makes many nervous. The Reserve Bank signalled this was the first rate rise – and not the last. Forecasts call for three more similar rises in the coming months. What concerns some is the rises could be too soon in the recovery cycle – and in the midst of continued government incentives. (Note to self: Buy a new car before 31 December for the business and claim 50% tax deduction for the purchase.)
Whether the rate rises are early or well-timed, it does signal that, for Australia, the worst of the economic shocks are over. This country never entered recession and kept unemployment figures low. The government is credited with smart and quick market interventions. And of the ten most secure banks in the world, four are located in Australia.
So it’s time to dust off the “Money Come Kitty” and return to work – and hopefully the lucky cat will wave in lots more business.
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 11, 2009 at 9:18 am · Filed under Globalisation
I sure am glad Angela Merkel isn’t Russian. Up for re-election this month, Merkel chose to take time off for a walk through the Tyrol mountains. Heading back to nature is a popular choice for European leaders. In July Russia’s Vladimir Putin went horseback riding and swimming in Siberia. In case you weren’t sure of his viability as a Prime Ministerial candidate in the next election, he issued beefcake photos to showcase his…health.
Before his election, Barack Obama took to the ocean. Subsequent publication of photos swayed a few female (and gay) voters away from Hillary. Result? We’re certain he’s healthy.
So with the leaders of America and Russia as examples, we should have seen official photos to demonstrate Angela Merkel’s health. After all a bracing walk through the Tyrol mountains should have provided plenty of photo opportunities. Yet enter “Merkel Tyrol” into Google image search and you don’t get a photo of Angela and mountains.
Well, let me clarify…
At least we know she’s healthy!
August 6, 2009 at 3:42 pm · Filed under America, Globalisation, Australia
Australian city centres recorded a major jump in vacant office space. Seems those armies of unemployed people are no longer in suits and skirts - nor are they in offices.
I wrote back in May about the issue: Commercial Property: The Other Shoe to Drop. Today writing for “Primespace” in “The Australian” Turi Condon reports a 40% increase in vacant office space. Nationally vacant space went from 5.9% in January to 8.3% in July. And companies are still not done shedding staff.
(BTW, it feels prescient to have used the “other shoe” title - especially when The Economist writing this week uses the exact same analogy in a sub-head for a story on commercial property.)
Commerical rents have plummeted, with drops between 35% to 50% in Brisbane and Perth. Meanwhile new space is coming on the market. In the next 18 months 1.3 million square metres is due to come on market. That’s the equivalent of all the office space in Adelaide.
Prognosticators say commercial property will be in the doldrums for three years. (They also see a tall dark stranger coming into your life, but details will cost you extra.)
In Berlin there’s a novel way to cover over slumping demand. In Potsdamer Platz a half-built office complex is masked by a ten story facade with a picture of a building painted on it. Did you read that correctly? A ten story tall painting!
That’s as good as the service now on offer to Los Angeles suburbanites. If they tire of brown lawns in their housing complex - due to mortgagee reposessions - they can pay $600 to have the grass spray-painted green. Yes - spray paint. Not those fertilised seeds used to start lawns (those require water). This is a quick-fix gloss-over to make your neighbourhood “new car” clean.
So here’s my business idea. Let’s sell cut-outs of busy professionals who can be propped behind vacant desks. We can create tableaux of typical office situations - Fred from accounts checking football scores. Mary in HR talking on the phone (with bonus sound loop of endless chatter!). The logistics department gathered in the boss’ office to settle the Seattle issue. This way today’s office workers won’t feel so lonely in their empty offices.
Who knows - if productivity improves we might lose a model or two to upper management!
June 30, 2009 at 10:48 am · Filed under Globalisation
Mourning used to be conducted in private. When a loved one died we would retire to the inner most sanctum of our homes for private time with loved ones. When a hard of state or beloved icon died, we might gather at the church or cemetery to pay our respects. Then Diana died and our mourning turned public.
Today that most private of emotions – grief – is on display with vast public outpourings for Michael Jackson. Record stores have sold out of his music. Producers are rushing a new CD of unreleased music to capture what they call “grief momentum.” Jackson is projected to overtake Elvis’s US$50 million per year in royalties. He’ll be the most lucrative dead star in history.
I can’t help but feel a little odd about all this. It certainly isn’t the first time the public has turned to their wallets to assuage grief. I lived in Hong Kong when Gianni Versace was murdered. All stores around the world were closed, spare the one in Central, Hong Kong. Extra security guards were hired. Velvet ropes kept the crowds in queue. And before lunchtime the entire store was sold out.
I get a little awkward around all this. I am adept when consoling families. But how do you deal with the office receptionist who says she would have stayed home if she’d known Michael was dead? What do you say to the friend wearing a single glove?
Is “Beat It” too blunt?
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