In the last decade of the 20th century, Australia became a model for other OECD countries in two respects: first, the tenacity and thoroughness with which deep structural reforms were proposed, discussed, legislated, implemented and followed-up in virtually all markets, creating a deep-seated “competition culture”; and second, the...

The Australian economy completed the thirteenth year of its expansion in the middle of 2004, marking the longest run of uninterrupted growth in Australia’s post-war history. Over this period, the growth of output averaged 3.5 per cent and that of real per-capita income 2.4 per cent, which compares favourably with the performance of most other OECD countries. The long expansion was...

Consolidation was the primary objective of fiscal policy during the second half of the 1990s. The actual and structural net lending positions of the general government improved by 8.4 and 6.3 per cent of GDP respectively over the period 1992-1999 – well above the OECD average.1 In particular, the general government financial balance swung to a surplus of 2 per cent of GDP in 1999 from a deficit of...

The OECD Growth Study1 and other empirical work have shown that the strength of competition in product markets plays an important role in the economic growth process as well as contributing to a more efficient allocation of resources in a static sense. More intense competition is likely to encourage stronger efforts of managers to improve efficiency and induce higher innovative activity...

Supported by strong domestic demand, the Australian labour market has resisted several adverse shocks, such as the drought and the weak global environment during much of the 2001 to 2003 period. The growing importance of services has spurred part-time employment, which has grown almost four times as fast as full-time employment in the past 25 years.1 Nevertheless, over 70 per cent of...