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Economic Reform/Policy Mix, Covers Macro and Micro Economic Reforms in Australia
These reforms are paying off with lowered costs, improved productivity, and improved returns but the reform process has been slow.
Problems such as a low level of labour productivity and high domestic cost structure have seen labour market reform to be focusing on enterprise bargaining. This process allows for individual workplace agreements and wage increases are more in line with economic circumstances and productivity improvements. Enterprise bargaining is seen by the government as the key to labour productivity improvements.
MER has had significant achievements in the economy. Significant improvements have been made in particular areas such as maintaining a highly skilled future workforce, and productivity improvements in the waterfront and shipping industry. There is a down side to MER. Job loss has risen as reforms are implemented; displaced workers usually lack the skills required for employment in other industries. This leads to a growth in the rate of structurally unemployed. Reforms will also increase inequalities in income distribution; workers relying on safety net wage rises will be disadvantaged to those who have formal agreements. The government is concerned about these factors but believe that MER was not designed to fix social issues. They believe its function is to improve productivity in key industries that will benefit the economy as a whole.
- Economic Reform/Policy Mix, Covers Macro and Micro Economic Reforms in Australia
- The Independence of the Judiciary in Australia
- The Modified Market Economy, Concentrated Mainly on Australia
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