Do we need more economics in Australian economic diplomacy?

ABSTRACT

Economic diplomacy—that is, informal and formal processes and links between states and non-state actors on international economic issues—is a current focus of Australian foreign policy. The Department of Foreign Affairs and Trade’s stated economy diplomacy aims are liberalising trade, boosting economic growth, encouraging investment and assisting business. If Australia is to embrace a genuine and effective notion of economic diplomacy there are two problems to be overcome. First, DFAT’s economic diplomacy framework is incomplete and misses the bigger economic picture, particularly the role of Australia’s key economic agencies, Treasury and the Reserve Bank of Australia. Second, DFAT does not consistently apply economic principles to foreign affairs issues including trade, foreign aid and the global investment agenda. Going forward, Australia should abandon the focus on the four narrow pillars and instead focus on developing a clear, coordinated international economic strategy that articulates Australia’s core international economic objectives and priorities.     

Australian aid after the ‘Golden Consensus’: from aid policy to development policy?

ABSTRACT

In the decade preceding the election of the Abbott Coalition Government in 2013, a so-called ‘golden consensus’ governed Australian aid policy. During this period Australia’s aid spending increased by over 80% in real terms. However, after winning government the 2013 Federal Election, the Abbott Government made a series of significant and unexpected aid policy decisions, cutting the aid budget three times in fifteen months and integrating AusAID, Australia’s aid agency, into the Department of Foreign Affairs and Trade. This article considers the future role of aid in Australia’s diplomacy primarily by engaging with a prior question: how was it possible for the golden consensus to be uprooted so easily? Conducting a post-mortem reveals that Australia’s development constituency bears some responsibility for the fragility of the consensus. This analysis also reveals the critical role the development constituency will play in determining the extent to which Australia is able to embrace the ‘beyond aid’ agenda. To meet this contemporary challenge, the development community must heed the lessons of the collapse of the golden consensus and, in particular, overcome its reticence to engage in broader foreign policy debates.     

Is it time to start worrying more about growing regional inequalities in Canada?

Much has been written recently about the rise of within-country inequality and growing imbalances of regional fortunes in the United States and the European Union. In this paper, we apply a novel geo-visualization technique that combines local indicators of spatial association with directional statistics to a unique dataset in order to explore the spatial dimensions of regional income inequalities in Canada from 1981 to 2016. After describing a pattern of growing spatial divergence among regions, we briefly discuss the need for the federal government to explore new types of place-sensitive development policies.