The Country,the City and the State in the Australian Settlement

The Australian Settlement, as formulated by Paul Kelly, had a sixth pillar: a settlement between the city and the country in which the state compensated people living in the country for the costs of remoteness and sparse settlement. This was underpinned by the reliance of Australian export performance on agriculture, by nation-building commitments to peopling the continent, and by agrarian beliefs in the virtues of country life. Australia's egalitarianism had a spatial and regional as well as a class dimension. Changes in Australia's economy, demography, and political culture have eroded these foundations, leaving rural Australia vulnerable to the neoliberal agenda. The dismantling of tariffs, the restructuring of agriculture, microeconomic reforms driven by National Competition Policy, and regional policy which stresses self-reliance, all treat rural Australia as a minor part of the nation rather than its economic and cultural foundation, and reject claims to special treatment. To give country Australia its own pillar makes visible the magnitude of the historic shifts which have taken place in the state's relationship to rural Australia since 1983 and brings it into the main frame for understanding Australia's abandonment of protective statism.