Reorientation of trade, investment, and migration

Introduction This chapter will bring together some of the key geographic shifts in Australia's international economic relations in the second half of the 20th century, particularly the refocusing of investment, trade and migration towards East Asia. After describing the major elements of Australia's changing international economic relations, the chapter will examine the main explanatory factors and analyse the consequences of the shifts, which have primarily been increased material prosperity for most of Australia's population, a greater openness of the economy and society, and the adoption of multiculturalism. Patterns In 1950 farmers and graziers supplied 86 per cent of Australia's exports; by the 1990s that share had fallen below 25 per cent. Meanwhile, the share of fuels, minerals and metals, 6 per cent in 1950, rose to more than 40 per cent and the share of services increased from 5 per cent to 20 per cent. The change in structure was accompanied by an equally dramatic change in the direction of exports: the share of Europe (primarily the United Kingdom) dropped from 63 per cent to 16 per cent while that of East Asia increased from 14 per cent to 56 per cent (Anderson 1995, p. 33). These dramatic changes, which have continued into the 21st century, required a rethinking of Australian policy towards trade, investment and immigration, as well as reassessment of the nature of Australian society, with its European heritage and Pacific location.Richard Pomfre

Colonial enterprise

We have observed in other chapters the rapid economic growth and sectoral shifts in activity that characterised 19th-century Australia (Madsen, this volume). Enterprise made an important contribution to this story; particularly by responding to extreme economic uncertainty in the early period, meeting the opportunities presented by expansion in the middle years of the century and adjusting to the cyclical vicissitudes of the latter years prior to Federation. At the same time, business enterprise played an increasingly important role in shaping that environment and the economic evolution of the Australian colonies