Case | HBS Case Collection | August 2012 (Revised June 2017)

Australia: Commodities, Competitiveness, Climate and China

by Richard H.K. Vietor and Laura Alfaro

Abstract

For the past few decades, Australia has dealt with the benefits and costs of repeated mining booms—inflation, a housing bubble, a current account deficit and growing dependence on China. Between 1996 and 2007, however, Australia had most of these issues under control and grew at impressive rates, becoming one of the richest of developed countries. Yet competitiveness in its non-mining sectors declined. Since the financial crisis, additional challenges associated with climate change, minerals taxes, migration, fiscal deficits and currency fluctuations have complicated the issues facing both Labor and Liberal administrations, with a very thin majority. Meanwhile, Australia's non-mineral competitiveness continues to recede.

Keywords: commodities; competitiveness; carbon tax; environment; capital flows; current account; mining; Economy; Problems and Challenges; Australia;

Language: English Format: Print 33 pages EducatorsPurchase

Citation:

Vietor, Richard H.K., and Laura Alfaro. "Australia: Commodities, Competitiveness, Climate and China." Harvard Business School Case 720-028, August 2012. (Revised June 2017.)

Related Work

  1. Teaching Note | HBS Case Collection | February 2013

    Australia: Commodities and Competitiveness (TN)

    Laura Alfaro, Richard H.K. Vietor and Hilary White

    For the past few decades, Australia has dealt with the benefits and costs of repeated mining booms—inflation, a housing bubble, a current account deficit and growing dependence on China. Between 1996 and 2007, however, Australia had most of these issues under control and grew at impressive rates, becoming one of the richest of developed countries. Yet competitiveness in its non-mining sectors declined. Since the financial crisis, additional challenges associated with climate change, minerals taxes, migration and an overvalued currency have complicated the issues facing Julia Gillard and her Labor Party, with a very thin majority.

    Keywords: competitiveness; inflation; mining; current account; Exchange rates; trade; capital flows; commodities; environment; carbon tax; Goods and Commodities; Australia;

    Citation:

    Alfaro, Laura, Richard H.K. Vietor, and Hilary White. "Australia: Commodities and Competitiveness (TN)." Harvard Business School Teaching Note 713-063, February 2013.  View Details
    CiteView DetailsPurchase Related

  2. Case | HBS Case Collection | August 2012 (Revised June 2017)

    Australia: Commodities, Competitiveness, Climate and China

    Richard H.K. Vietor and Laura Alfaro

    For the past few decades, Australia has dealt with the benefits and costs of repeated mining booms—inflation, a housing bubble, a current account deficit and growing dependence on China. Between 1996 and 2007, however, Australia had most of these issues under control and grew at impressive rates, becoming one of the richest of developed countries. Yet competitiveness in its non-mining sectors declined. Since the financial crisis, additional challenges associated with climate change, minerals taxes, migration, fiscal deficits and currency fluctuations have complicated the issues facing both Labor and Liberal administrations, with a very thin majority. Meanwhile, Australia's non-mineral competitiveness continues to recede.

    Keywords: commodities; competitiveness; carbon tax; environment; capital flows; current account; mining; Economy; Problems and Challenges; Australia;

    Citation:

    Vietor, Richard H.K., and Laura Alfaro. "Australia: Commodities, Competitiveness, Climate and China." Harvard Business School Case 720-028, August 2012. (Revised June 2017.)  View Details
    CiteView DetailsEducatorsPurchase Related

About the Authors

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Richard H.K. Vietor
Baker Foundation Professor, Paul Whiton Cherington Professor of Business Administration, Emeritus
Business, Government and the International Economy

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Laura Alfaro
Warren Alpert Professor of Business Administration
General Management

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