Theme 1 - Economic Prospects

Western Australia (WA) has been an integral part of the economic ascendency of China both through mineral and energy exports, and the inflow of foreign direct investment from China. Along with the mainstay of trade relations with Japan, there are also significant and developing trade links with Indonesia, South Korea and, further afield, with India. The WA economy has flourished in these circumstances, becoming the leading net overseas exporter in the Australian economy.

More recently, however, global and regional trends have tempered economic activity, and growth in demand in the resources sector has moderated. While this has dampened certain expectations, WA is nonetheless well situated to be a part of future growth in the region. However this may not happen automatically and maximising this opportunity will require serious consideration of how it can best continue to develop as an active and prosperous regional economic force. The increasing role of knowledge-based capital as a source of growth is an important element in this challenge.

In this regard, WA has a strong record in scientific and technological innovation, and in the delivery of advanced services, all with the potential for considerable growth. These capacities dovetail directly into emerging regional demand, especially given the rising standards of living in the Asian region. The development of these capacities among others requires agile policy frameworks and smart strategic investment on the part of government, industry, and the state’s research and training institutions. How well this is done will be critical to WA’s ongoing role in the region in the 21st century.

Questions

• What are the emerging contours of economic growth and trade in the Asia Pacific region and in what ways is WA implicated in these patterns?

• What are the existing strengths of the WA economy and what are its vulnerabilities, especially in relation to external forces?

• How can the strengths of the WA economy be leveraged to ensure it develops as a dynamic regional player into the coming decades?

• To what degree can WA act as a relatively independent economic actor (given the Australian Federal system) in processes of regional economic engagement and development?