National Economics
The National Institute of Economic and Industry Research (NIEIR), also known as National Economics, was founded in 1984 as a private economic research, consulting and training group serving clients in the public and private sectors. Our clients include many of Australia's largest and most dynamic corporations as well as Federal, State and Local Government.
The 2008-09 State of the Regions (SOR) Report
The 2008-9 State of the Regions (SOR) is the 11th in the SOR series and this report again adds to the accumulated knowledge of the previous reports in the critical area of climate change. In Chapter 5 Reaping two whirlwinds, the report brings together the financial crisis and the economic implications of climate change 'At the time of writing (October 2008) the returning whirlwinds are mere dust devils compared to what is to come'.
The Report explains the underlying factors that have created the global financial crisis and discusses the economic implications of the Federal Government's emissions trading scheme known as the Carbon Pollution Reduction Scheme and the Garnaut Climate Change reports and their findings. At the local government and household level, the report considers the impact of the emissions trading scheme on households because of rising energy costs as well as highlighting a range of strategies which can be used by local government to assist their communities in adapting to climate change. The report includes Local Government case studies which showcase a selection of these council strategies. The Report also provides some insights into the ways in which Germany and the United Kingdom are responding to climate change and the policies and actions that result.
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The state of Australia's households is examined. Topics explored include household wealth and debt, the baby bounce, migration patterns and employment.
The Regional Telecommunications Independent Review Committee Report 2008, Framework for the Future, was tabled in the Federal Parliament on 15 October 2008. This SOR reviews what progress has been made towards creating an equitable broadband service throughout Australia as well as considering progress over the last 12 months towards more effectively enabling the knowledge economy. The distribution of patent activity is considered in this context.
An extensive appendix of regional indicators underpins the findings in the main report and forms a valuable economic analysis of the state of Australia's regions.
The report demonstrates a troubling convergence of factors that will have an impact on regional economic development. Coming together, as they now appear to be doing, these factors in combination are likely to have a much greater impact on regional economic development than would otherwise have been the case. These factors include the following.
- The impending costs of climate change and the further costs of greenhouse gas emissions abatement.
- The global financial crisis.
- The record highs in household debt.
- The lack of progress in developing a National Broadband Network.
- The likelihood that, in Australia, the knowledge economy has failed to spread outside of the existing knowledge-intensive regions.
- In terms of the migration flows, the tendency for young adult Australians to avoid the knowledge-intensive regions and head north and west to resource and lifestyle regions or perhaps overseas to knowledge-intensive regions in other countries, while young adults from overseas (including overseas returned Australians) are seeking their future in the knowledge-intensive regions in Australia. These trends indicate increasing divergence between the cosmopolitan knowledge-intensive core-city regions and the relatively poorly-educated periphery.
- The need to convert the economy to a low carbon emissions future will require a greater level of investment and a greater commitment to research and development and to innovation.
- The resource based regions, which are vulnerable to the global downturn and to falling demand for emissions intensive commodities, and the rural regions, which are vulnerable to the impacts of climate change, are likely to experience ongoing difficulties.
Further information on the State of the Regions Report can be found on the Australian Local Government Association website
