The Rise and Fall of 2007-2013 Labor Government

ALP-Labor-2007

Peter Hartcher, the Sydney Morning Herald’s political and international editor, has recently published a special five parts feature entitled, “The Meltdown“. It traced the rise and fall of the 2007- 2013 Australian Labor Government led Kevin Rudd and Julia Gillard.

They were two extraordinary politicians. The great sadness of this time was that they were both in the same generation with the same ambition.

Together they should have been invincible.
~ Penny Wong

Melbourne, the world’s most livable city – 2011 Global Liveability Survey

Melbourne won the 2011 title of most livable city, according to the Economist Intelligence Unit’s annual survey. (See BBC’s Melbourne edges out Vancouver to top liveable city list)

The result came as a bit of a surprise. Since my university days, I have always known Melbourne to be a great place to live – an open, lively, diverse, sporty and cultural society, access to good quality fresh produce, decent infrastructure, a decent rate of economic growth, a variety of connections to the rest of the world by plane.

However, over the years, my impression that this great city was slipping down the ranks because of the huge population increase, lack of affordable housing, overstretched public health systemovercrowded public transport and ageing infrastructure and the  exceptional rising cost of living. Unfortunately, there have been a lack of real political leadership (from both sides of politics) at the state/ federal level after years of white paper churning. Just asked any average Melbournian about the state of the city? Australia has become a really unaffordable place to live or visit.

The only explanation that I could thought of to why these worsening issues did not affect the city’s overall rating is probably because their target audiences are those really affluent people who don’t really depend on the city’s crumbling public, over-utilised infrastructure or services.

The State of the Federal ALP Government as described by Clarke and Dawe

As a casual observer of Australian politics I can’t help feeling tired and fed up with the current performance of the ALP at the federal and state levels. This video by Clarke and Dawe had accurately described what’s happening in the Labor government. This is a government that lost its agenda setting ability and is either in denial or lacked ideas to reverse its current position.

I had so much hopes for Australia when the ALP (Australian Labor Party) went through a disciplined and focused campaign to defeat the second longest serving Prime Minister – John Howard and took office. At the start, Rudd looked like a capable PM, financial conservative guy with foreign affairs expertise with Gillard looking liked a capable, strong deputy PM and taking on industrial relations and education portfolio amongst other things. Things looked pretty good and I thought Australia was entering into a golden age of economic and social policy progress. My admiration went to their latest level when a centre-left ALP managed to keep the Australian economy in shape through the darkest times of the 2008 GFC (global financial crisis) by riding on the China boom.

But since then everything seem to fall apart and I had my dose of reality check. This government was unable to defend their policies has gradually lost its support for its programmes and overall support despite a negative and uninspiring opposition. Australians were increasingly more worried for their future despite a blooming economy. The ALP’s internal discipline faltered, the great opportunity to push through difficult reforms despite a federal-state ALP government never came, education review led to more questions about Australia’s research future, national infrastructure investment did not fly, home insulation programme was canned, the mining super profit tax was watered down, climate change agenda captured by  the Coalition, refugee issue remained a question mark.

As a Sinophile, I was most disappointed by the dearth of leadership and ideas to engage China in a meaningful and with the forward looking vision to prepare the country for the rise of a new global power and the new opportunities beyond natural resources. Instead I saw policies and behaviours that reflected tints of yellow peril. United States is without a doubt still a global superpower and an important ally, but Australia has to prepare for the new reality.

If the federal ALP government wants to retain the confidence of the Australian public, they better get their act together and stopped repeating that these are difficult times for any government. Stop the denial and take it on the chin! Guess what? That’s why the Australian public voted them into government in the first place.

Outward Foreign Direct Investment from Emerging Economies

Recently, I have been doing research on the nature of China’s outward foreign direct investment and its impact on Australia. I found the Vale Columbia Center on Sustainable International Investment, Columbia University to be an invaluable source.

Between Karl Sauvant (former UNCTAD Director) and Ken Davies (former Global Relations Head, OECD), there have been numerous useful articles including:

Be still, and know that I am God

This month, Fr Edward Wood from the Blessed Sacrament Community, Melbourne wrote a succulent piece about having a quiet moment with God in the Eucharist entitled “Stillness and the Eucharist: Heart speaks to heart in the Eucharistic Presence“.

He described a straight forward approach on how to enter into the proper state of mind to engage God and mediate on his divine presence.  We might need to feel the urge to speak and “to be thinking grand thoughts” but actually we do not. For God’s presence is for you and in you … for in the stillness you will recognise him.

China’s Mounting Municipal Debts and its Impact on the Future Australia Commondities Demand

(Credit: Remko Tanis)

Corporate accounting scandals, subprime mortgage crisis and European sovereign debts concerns aside, the next looming overseas financial crunch to hit Australia and where it can really hurt is China’s mounting municipal debts. The FT and Citibank estimated the bad debts to be around USD 294 billion -350 billion respectively. While there is little doubt that China can cope with this debt, how the Chinese Government is going to reduce the local governments’ bad debt exposure. Could this reduction avoid massive demand cuts for Australia’s commodities that could (directly) impact up to 10% of Australia GDP?

At the start of global financial crisis (GFC), the Chinese government announced a 4 trillion yuan (USD 586 billion) national stimulus plan, with 38% of the stimulus allocated to infrastructure projects. Local banks lending limit were lifted, and urged to support the country’s growth in midst of the GFC. The market became awashed with easy money and local governments embarked a massive infrastructure spree. Many such projects were being financed through quasi-independent companies. Some of such companies were created by local governments in order to subvert lending restrictions imposed on Central government.

Last week, these practices finally hit the headlines when Liu Jiayi, the Head of the National Audit Office, in a report to the National People Congress (report in Chinese), cast doubt whether those over-exposed local government has the means to repay their loans or would ended up as bad debts?  The State Council (China’s Cabinet) responded by ordering all provinces to review all debts, cease illicit local financing and investment and detail a financial health report by end of 2010.

Undoubtedly this directive would result less infrastuture projects and decrease demand for Australian commondites. The Australian mining industry and the Australian Bureau of Agricultural and Resource Economics (ABARE) will want to incorporate this development in their mid-term growth forcast in light of the weakness in the global banks.

Related links:

Sunday arvo around Sydney Harbour Bridge and the Royal Botanic Gardens

It was another clear blue fine wintery Sunday day in Sydney and I cannot resist taking pictures of this beautiful city. I lived here for almost three years and I maintained a love-hate relationship with this place. As a student, I depend on much on public facilities for most services and Sydney’s public transport and infrastructures is absolute basket case.
However each time just when I want to give up on this city, around the corner there will be an quintessential Sydney scene or experience that reminds me what a fantastic city can be particularly if you are affluent and do not depend on woeful current state government.
This weekend I took pictures from the Sydney Opera House, the Royal Botanic Gardens (Sydney Botanic Garden) including views from Mrs Macquarie’s Point.  Hope you like the small selection and be encouraged to view the entire set.

1-Blue-staturated-Sydney-Opera-House 9-Mare-and-Foal-by-Arthur-Jacques-LeDuc-Sydney-Royal-Botanic-Gardens 011-Commerce-sculpture-Royal-Botanic-Gardens-Sydney-Australia

Summary and reflection on China’s Internet policy

(Credit: Tim Yang)

On 8 Jun 2010, the China State Council published its Internet policy white paper. The white paper (available in English) was written for an international audience explaining China’s domestic Internet development and the state’s role in the management of Internet in China. On one hand, the white paper demonstrated a contemporary understanding and support and acceptance of the Internet’s contributions and impact on China’s economy and societal development. However on the other hand, the heavy rhetorical tone in sections of the paper masked the government’s internet policy inadequacies and blanket approach legislature response to manage the flow of information via the Internet.

The paper is divided into six sections. First, it introduced the historical origins of the Internet in China, the massive ICT infrastructure development undertaken since 1997 and the government’s target to raise Internet accessibility to 45% of its population by 2015. Next, it described the upcoming Internet-related economic growth sectors and briefly discussed the government e-governance efforts to satisfy the information demand of the country[1]. The section goes on to elaborate the role of the Internet particularly in among its urban population – currently the largest constituent of China’s Internet population.[2]

The third section iterated the Chinese government’s support to the development of news communication over the Internet. This support was in alignment to its citizen’s right to freedom of speech, access to a full range of information and societal participation “in accordance with the law”.  The Chinese government also recognised the Internet’s role as a conduit to facilitate communication between the government and its citizens. The government singled out the vibrancy of the citizenry societal discussion on BBS (bulletin board system) which enabled the leaders to become more aware of the grassroots situation[3] and indirectly increased the citizens’ supervision of the government.

The fourth section outlined a litany of legislations and regulations to enable the government “scientific and effective Internet administration by law”. These legislations and regulations covered the administration of Internet network infrastructure, the dissemination of illegal information online, online safety for minors, the protection of digital intellectual property rights and citizen’s online privacy. It also outlined a sweeping list of prohibited content online, established by the National People’s Congress[4]. While this list of content may looked comprehensive, the definition of these prohibited content are often loosely defined. The lack of clarity behind these terms and a non-independent judiciary hindered an accurate understanding how these offences may occur.

The fifth section highlighted “cyber security” as a crucial area of interest to the China government. The Chinese government recognised that the Internet is an important infrastructure for the entire country and therefore internet security is a matter of state security and public interest. Within Chinese territory, “the Internet is under the jurisdiction of Chinese sovereignty.” Therefore, all PRC citizens, foreign citizens and organisations within Chinese territory must obey the laws and regulations of China.

To further lend support for the case of internet security, the paper provided an unsubstantiated statistical reference (“incomplete statistics”) to more than 1 million IP addresses in China were controlled overseas.[5] A series of agencies, laws and regulations concerning administration of the Internet security in China were also mentioned. Interestingly, the government is placing the onus of monitoring the users’ usage and content on the ISPs “to prevent the transmission of all types of illegal information”[6] [7].

In the last section, the Chinese government outlined its willingness to engage multilateral and regional organisations to share the responsibility of maintaining global Internet security. It specifically expressed its support for the ITU (a United Nation agency) to hold the role of International internet administration and also provided a list of exchanges and agreements with regional organisations with ASEAN, Shanghai Cooperation Organization, Interpol and specific countries like the UK and the US. In this section, China demonstrates an acceptance to norms of international internet administration.

In conclusion, the Chinese government demonstrated a contemporary understanding of the Internet and is eager to take advantage of its information sharing economical benefit, societal development, and electronic governance capabilities. But at the same time, it also highlights an uneasiness undertone with the wide availability of information exchange. In response to information which may fall under its list of prohibited content, the government employs a long list of laws and regulations to administer the Internet but questionably placing the heavy burden of responsibilities onto ISPs to monitor the users’ data. On the international front, the government expressed its willingness to support and cooperation in multilateral organisations to administrate and promote Internet security and development.

This piece was written in my personal capacity.


[1] The haphazard references to e-governance may indicate a lack of established formal e-governance policy.

[2] The white paper did not include specific ICT policy for the rural population.

[3] From the author’s personal perspective, middle level Chinese authorities have a tendency to micro-manage situations particularly those involves senior level authorities. This tendency which may led to “astro-turf” participation during the occasional senior level authorities consultations.

[4] Within the IV section of the white paper quoted, “The citizens’ freedom and privacy … is protected by law, which stipulates at the same time that while exercising such freedom and rights, citizens are not allowed to infringe upon state, social and collection interests or the legitimate freedom and rights of other citizens.” In absence of an independent judiciary, there is no institution apart from the CCP in China to determine the boundaries of the State’s interests.

[5] Researchers from University of Toronto and US’s Shadowserver Foundation uncovered a vast online espionage network based in China, http://bit.ly/9WftsS (The Globe and Mail)

[6] The Sydney Morning Herald reported the Australian Federal Government proposed new ISP regulation to retain the private users’ certain web usage data. In doing so, the government may be able to bypass the need for court warrant to access these data, http://bit.ly/9i695I (The Sydney Morning Herald)

[7] Are private entities (ISPs) in the position to be trained and resourced to monitor private users’ data? Should they actually get involved in monitoring their customers?

A Day out at Cockatoo Island – 17th Biennale of Sydney

Over the Queen’s Birthday long weekend, I spent the afternoon at Cockatoo Island, the major venue of the 17th Biennale of Sydney. Even before getting to the island,  the scenic ferry ride from Circular Quay across the Sydney Harbour to the island certainly raised the anticipation. Cockatoo Island was a very unique setting to experience contemporary art because its was also former prison and shipyard.  Many of these buildings and workshops’ content still remains.

Below are some of the photos I took on the island, while here is the link to the entire collection.

6-Cai-Guo-Qiang-Inopportune-Stage-One-2004- 013-Rohan-Wealleans-He-with-Glands-of-Wasp-Sydney-Biennale 4-Entering-into-the-unknown-by-Berno 015-Industrial-crane-port-Cockatoo-Island