Idea Transcript
UNIVERSITAS INDONESIA
AUSTRALIA AND GLOBALIZATION
MAKALAH NON SKRIPSI
PETER KURNIAWAN HUTOMO 1106076165
FAKULTAS EKONOMI UNIVERSITAS INDONESIA PROGRAM STUDI KELAS KHUSUS INTERNASIONAL MANAGEMENT UNIVERSITY OF QUEENSLAND FINANCE DEPOK JANUARI 2016
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
UNIVERSITAS INDONESIA
AUSTRALIA AND GLOBALIZATION MAKALAH NON SKRIPSI Diajukan sebagai salah satu syarat untuk memperoleh gelar Sarjana Ekonomi
PETER KURNIAWAN HUTOMO 1106076165
FAKULTAS EKONOMI UNIVERSITAS INDONESIA PROGRAM STUDI KELAS KHUSUS INTERNASIONAL MANAGEMENT UNIVERSITY OF QUEENSLAND FINANCE DEPOK JANUARI 2016
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
ABSTRAK Nama NPM NPM Program Studi Judul
: Peter Kurniawan Hutomo : 1106076165 ( Universitas Indonesia) : 43298037 (The University of Queensland) : KKI Fakultas Indonesia Faculty of Economics : Australia dan Globalisasi
Abstrak Fenomena global yaitu globalisasi menurut mantan kepala IMF (International Monetary Fund) Stanley Fischer sebagai perkembangan proses ketergantungan ekonomi antar negara, dimana proses tersebut sudah mempengaruhi Australia dan Negara-negara lain. Seperti definisinya, makalah ini akan membahas tentang aspek ekonomi dari globalisasi di Australia. Makalah ini akan membahas bagaimana globalisasi dimulai dari Australia serta efeknya pada Australia. Untuk mengetahui apa saja efek tersebut, kita harus mulai dari mengetahui momen-momen penting sepanjang sejarah Australia yang disebabkan oleh globalisasi. Australia sangatlah terkoneksi dengan Negara lain dalam bidang ekonomi melalui transaksi jasanya (transaksi jasa merupakan 80% dari total GDP Australia1) dan perdagangan komoditas seperti batu bara (dimana Australia memiliki competitive advantage2). Australia merupakan salah satu negara yang paling global, dibuktikan dengan sebuah riset dari Ernst and Young pada tahun 2013 dimana Australia merupakan negara dengan urutan ke 24 paling terglobalisasi pada tahun 20123. Kata kunci: Globalisasi, Australia, ekonomi
Koomen, Kaaren, Australia’s service sector booming, viewed 9 April 2015, http://www.austrade.gov.au/ArticleDocuments/3592/Australia-Europe-Brief201112.pdf.aspx+&cd=10&hl=en&ct=clnk 2 Mineral Council of Austraia, Characteristics of the Australian Coal Industry, viewed 9 April 2015, http://www.minerals.org.au/resources/coal/characteristics_of_the_australian_coal_industry 3 Ernst and Young, Globalization and new opportunities for growth, viewed 9 April 2015, http://www.ey.com/GL/en/Issues/Driving-growth/Globalization---Looking-beyond-theobvious---2012-Index 1
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
ABSTRACT Name
: Peter Kurniawan Hutomo
NPM
: 1106076165
( Universitas Indonesia)
NPM
: 43298037
(The University of Queensland)
Program
: KKI Fakultas Indonesia Faculty of Economics
Title
: Australia and Globalization
Abstract The global phenomenon that is globalization is defined by former IMF (International Monetary Fund) chief Stanley Fischer as the ongoing process of greater economic interdependence among countries, and it has affected Australia and other countries. As the definition stated, this essay will discuss the economic aspect of globalization focusing on Australia.
The essay will discuss how globalization started in Australia as well as the effects of globalization in Australia. To know the effects of globalization in Australia, we need to take a look on how globalization started in Australia and note the important events along the way up until today that is caused by globalization.
Australia is highly engaged with the world in terms of economy through majorly services (services provide 80% of Australia‟s GDP)4 and commodity trading such as coal (where Australia has a competitive advantage)5. Australia is highly globalized with recent research from Ernst and Young in 2013 stating that Australia is the 24th most globalized nation in 20126. Key words: Globalization, Australia, economy 4Koomen,
Kaaren, Australia’s service sector booming, viewed 9 April 2015, http://www.austrade.gov.au/ArticleDocuments/3592/Australia-Europe-Brief201112.pdf.aspx+&cd=10&hl=en&ct=clnk 5 Mineral Council of Austraia, Characteristics of the Australian Coal Industry, viewed 9 April 2015, http://www.minerals.org.au/resources/coal/characteristics_of_the_australian_coal_industry 6 Ernst and Young, Globalization and new opportunities for growth, viewed 9 April 2015, http://www.ey.com/GL/en/Issues/Driving-growth/Globalization---Looking-beyond-theobvious---2012-Index
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Introduction Globalization, a worldwide phenomenon. A phenomenon is defined as a fact or situation that is observed to exist or happen, especially one who cause or explanation is in question, or in today‟s pop culture, a phenomenon is something that attracts the attention of the world.
Many academics, businessmen, and others have given their opinions and point of views trying to define what this phenomenon called globalization is. People are wondering where does globalization come from, when did globalization begin, who began the globalization movement, what is going to happen to the world and everybody in it because of globalization.
I am from Jakarta, Indonesia, yet I am studying here in Brisbane, Australia. Is it not one form of globalization, or if not, then what are the forms of globalization. To help understand this worldwide phenomenon, this essay will discuss the theories of globalization with its definitions and characteristics, the development of globalization in the world, and as I am currently living in Australia, the globalization in Australia on where it came from and how are globalization affecting Australia right now.
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Theory of Globalization
By definition, the word globalization has a –ization in it, which means it is still a process. The process of the world economy to be a globalized economy. Globalized economy itself is defined by former IMF chief Stanley Fischer as „the ongoing process of greater economic interdependence among countries, reflected in the increasing amount of cross border trade in goods and services, the increasing volume of international financial flows, and the increasing flows of labor.‟7 Another definition of globalization by Gao Shangquan, a professor at Beijing University is „the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital, and wide and rapid spread of technologies.‟
Australian History of Globalization
From 1600 until 1850, big, powerful European countries such as Great Britain, France, Germany, Italy, and Spain began colonializing other countries in the Americas, Africa, Asia, and the region around them8. The main purpose of this was to be able to build trading relationship between home countries and the colonies. Mainly for commodities such as gold, silver, wheat, and cotton.
Fischer, Stanley 2003, ‘Globalization and Its Challenges’, Institute of International Education, vol.1, pp.3 8 Brewer, Paul 2015, IBUS2302 Globalisation and business, lecture 1, week 1: Economic Globalisation – An Introduction, lecture PowerPoint slides, viewed 10 April 2015, https://learn.uq.edu.au 7
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
During the colonialization era, the first of European sailors to arrive in Australian borders and interacted with Aboriginal people was a Dutch named Willem Janszoon in 1606. Between 1606 and 1770, there were in estimation 54 European ships that made contact, which many were merchant ships from Dutch East Indies Company.
However, it was in 1788 that a nation arrived with the intention of colonializing Australia. It was Captain Arthur Phillip and the First Fleet of Great Britain, with 11 ships and around 1,350 people in disposal. Captain Phillip was instructed to establish the first British Colony in Australia using convict labor. The young colony relied on development of farms and trading goods with local Aboriginal clans such as food, water, axes, cloth, and artefacts. This period starting in 1788 is now known as the European Settlement.
In 1819, an Australian business partnership was established between Alexander Berry and Edward Wollstonecraft. The business focused on selling and exporting the native cedar and tobacco. The business relied heavily on convict labor.9
The 1850s saw the beginning of the Australian “Gold Rush” as large gold deposits were discovered across Australia and between 1851 and 1861 Australia was producing one third of world‟s gold. 10 This Gold Rush era led to a massive immigration to Australia, not only by the convicts, but by hopeful gold diggers, which brought new skills and professions that contributed to the economy.
Perry, T.M, ‘Berry, Alexander (1781-1873)’, Australian Dictionary of Biography, National Centre of Biography, Australian National University, viewed 10 April 2015, http://adb.anu.edu.au/biography/berry-alexander-1773 10 Skwirk Online Education, Australian gold rush timeline, viewed 10 April 2015, http://www.skwirk.com/p-c_s-17_u-453_t-1222_c-4673/sa/sose/gold-and-mining/discoveringgold/australian-gold-rush9
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
After the Gold Rush era, the GDP of Australia continues to grow up until the 1880s, where a period of infrastructural boom occurred. 11 1883 until 1889 Melbourne witnessed a real estate prices boom and land speculation. Many of the land boomers or entrepreneurs were gold-rush immigrants. But once growth slowed and confidence in the investments began to decline, the boom collapsed into an economic depression. 12
Then there was the First World War. One of the effects on Australia were Australian steel producing firms and pharmaceuticals get contracts that has been previously held by German manufacturers. Then, Australian government make sure that wheat, wool, and meat were sent to UK. By the end of the war more than 400 products were being produced in Australia which had not been produced before.13
After the war, there was the great depression from 1929-1932 causing a fall in export prices and sales of wheat, cotton, and gold. It reached its peak in mid-1932 as nearly thirty two percent of Australians were unemployed.14
The Second World War occurred, then there was a period of renewed growth in Australia. Rationing and restrictions meant there were few consumer goods available, causing personal savings to rise. Man powering and essential industries also meant that there were recovery in employment.
Porter, Andrew 1999, The Oxford History of the British Empire: Volume III: The Nineteenth Century, viewed 10 April 2015, https://books.google.com/books?isbn=0191542407 12 Museum Victoria, Land Boom in 1880s Melbourne, viewed 10 April 2015, http://museumvictoria.com.au/collections/themes/2676/land-boom-in-1880s-melbourne 13 Lewis, Robert, The Australian Homefront during World War 1, viewed 10 April 2015, http://www.anzacday.org.au/history/ww1/homefront/homefront.html 14 Australian Government 2009, The Great Depression, viewed 10 April 2015, http://www.australia.gov.au/about-australia/australian-story/great-depression 11
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Australia Right Now
Economic globalization can be categorized into several indicators, they are globalization of markets, production, services, and labor. But, globalization on all of those are driven by the technology of each nation.
Gao Shangquan of Committee for Development Policy in the United Nations believed that “the fast globalization of the world‟s economies in recent years is largely based on the rapid development of science and technologies, and resulted in the environment in which market economic system has been fast spreading through the world”(2000). As technology and science is the driving force of globalization, we would take a look on how Australia is faring in technology and science. From the data gathered in Australian Bureau of Statistics15, in 1901 as Australian economy were rapidly evolving, the government gave Australian science and technology a big boost in funding. From 1800 to early 1900 more and more universities across Australia are founded and by 1980 Australia had 19 universities that contributed to solar cell, bionic ear, ethanol by fermentation, vaccines, and many more. In 1926, CSIR (Council for Scientific and Industrial Research) was founded, then for the following years, CSIR founded Division of Radiophysics in 1945 where by 1986 it was an important contributor to space ventures in, in 1952, atomic absorption spectrometer were developed, in 1978 the International Civil Aviation Organization used a program from CSIR, and many products such as PSZ (world‟s toughest ceramic), insecticides, biological control of skeleton weed, SIROTEM (electromagnetic device). This have
15
Australian Bureau of Statistics 2012. Science and Technology in Australia, CSIRO, Canberra
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
proven that Australia is firmly as one of the more globalized in the world as it has good science and technology support.
Another trend that proves Australia has been globalized is the high number of households with access to the internet at home.
Figure 1 Australian Bureau of Statistics: Household Internet Access (2014)
The figure indicates that number of households with access to the internet continues to increase and in 2012-2013 has reached 83% of all households.
Figure 2 Australian Bureau of Statistics: Internet User by Age Group (2014)
Another figure to look at is the Internet users by age group. The working age 18-55 years old are very high users of the internet. Meaning they are highly connected to the
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
entire world. As Australia are have high technology to support globalization, now we are going to look how Australia will fare in other indicators of Globalization.
The first indicator is globalization of markets. Globalized markets mean the markets offer the same product at more or less same prices and the most globalized markets
Figure 3 Department of Foreign Affairs and Trade: Australia’s top 25 exports
Figure 4 Department of Foreign Affairs and Trade: Australia’s top 25 imports
are the commodities market. Now, let‟s take a look at how Australian are faring in the trade of commodities. Figure 3 and 4 shows that Australia‟s commodity trading is very much healthy, active, and growing on important industrial commodities.
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Figure 5 Department of Foreign Affairs and Trade: Australia’s top two-way trading partner
Figure 5 shows Australia‟s top export and import trading partner where Australia is trading to all parts of the world.
The second indicator is the globalization of production where firms will allocate their value chain activities in different sites to get the best advantage, thus leading to increase in outsourcing and offshoring activities. Australia are having several competitive factors in their favor. A recent study by KPMG comparing business costs in Australia to other advanced countries shows Australia has significant cost advantages in software production, research and development, corporate services, and manufacturing. Although direct business costs in Australia are high, a very skilled workforce, stable political system, and high quality infrastructure also being Englishspeaking country are advantages also held by Australia.16
Several examples of offshoring in Australia are Deutsche Bank offshoring 100 global technology and operations in Sydney by 2004, DST International is moving the global software development from UK and US to Melbourne, UBS‟ global IT support center is now located in Sydney, OM and IBM Global choosing to locate their technical support centers in Australia.
16
http://www.competitivealternatives.com/REPORT/DEFAULT.ASP
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
The third indicator is globalization of services. Services industry represents fastest growing sector of global economy as it represents 60% of global output, 30% of global employment, and nearly 20% of global trade.17
Figure 3 Department of Foreign Affairs and Trade
It is the same in Australia as services industry now provides almost 80 percent of Australia‟s Gross Domestic Product and employs 85 percent of the workforce, including 93 percent of university graduates. Two contributing factors to this trend are Australia‟s education system has produced world class graduates in service industries and Australia is located close to one of the world‟s most dynamic regions the Asia Pacific. As any foreign companies that want to invest in Asia would consider investing in Australia instead that already has a foothold in Asia Pacific market where Australia‟s largest services export market was China. 18 And after a free trade agreement with China signed in 2014, it provided greater access for a range of Australian services industries to the large and growing Chinese market.19
Brewer, Paul 2015, IBUS2302 Globalisation and Business, lecture 1, week 2: Globalisation Characteristics, lecture PowerPoint slides, viewed 11 April 2015, https://learn,uq.edu.au 18 Koomen, Kaaren, Australia’s service sector booming, viewed 11 April 2015, http://www.austrade.gov.au/ArticleDocuments/3592/Australia-Europe-Brief201112.pdf.aspx+&cd=10&hl=en&ct=clnk 19 Australian Services Roundtable 2014, China Australia Free Trade Agreement paves the way for Australian services export boom, viewed 11 April 2015, http://servicesaustralia.co/mediareleases/china-australia-free-trade-agreement-paves-the-way-for-australian-services-exportboom, 17
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Figure 4 Department of Foreign Affairs and Trade
The fourth indicator is Globalization of labor, which has been in effect from Australia‟s history of globalization from European Settlement era, Goldrush era, and land boomers era as migrants moved to Australia. And up until today, more people are migrating to Australia.
Figure 5 Acacia Immigration Australia
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Conclusion To conclude, globalization process in Australia has been happening from the 18th century, and today Australia‟s economy is one of the most globalized as indicated by globalization of markets, production, services, and labor. Australia were the 24th most globalized nation in 2012 according to Ernst and Young.20
Ernst and Young, Globalization and new opportunities for growth, viewed 9 April 2015, http://www.ey.com/GL/en/Issues/Driving-growth/Globalization---Looking-beyond-theobvious---2012-Index 20
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
References Koomen, Kaaren, Australia’s service sector booming, viewed 9 April 2015, http://www.austrade.gov.au/ArticleDocuments/3592/Australia-Europe-Brief201112.pdf.aspx+&cd=10&hl=en&ct=clnk
Shangquan, Gao 2000, Economic Globalization:Trends, Risks and Risk Prevention, Committee for Development Policy United Nations, viewed 9 April 2015, http://www.un.org/en/development/desa/policy/cdp/cdp_background_papers/bp2000_ 1.pdf
Mineral Council of Austraia, Characteristics of the Australian Coal Industry, viewed 9
April
2015,
http://www.minerals.org.au/resources/coal/characteristics_of_the_australian_coal_ind ustry
Ernst and Young, Globalization and new opportunities for growth, viewed 9 April 2015,
http://www.ey.com/GL/en/Issues/Driving-growth/Globalization---Looking-
beyond-the-obvious---2012-Index
Fischer, Stanley 2003, „Globalization and Its Challenges‟, Institute of International Education, vol.1, pp.3
Brewer, Paul 2015, IBUS2302 Globalisation and business, lecture 1, week 1: Economic Globalisation – An Introduction, lecture PowerPoint slides, viewed 10 April 2015, https://learn,uq.edu.au
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Perry, T.M, „Berry, Alexander (1781-1873)‟, Australian Dictionary of Biography, National Centre of Biography, Australian National University, viewed 10 April 2015, http://adb.anu.edu.au/biography/berry-alexander-1773
Skwirk Online Education, Australian gold rush timeline, viewed 10 April 2015, http://www.skwirk.com/p-c_s-17_u-453_t-1222_c-4673/sa/sose/gold-andmining/discovering-gold/australian-gold-rush-
Porter, Andrew 1999, The Oxford History of the British Empire: Volume III: The Nineteenth
Century,
viewed
10
April
2015,
https://books.google.com/books?isbn=0191542407
Museum Victoria, Land Boom in 1880s Melbourne, viewed 10 April 2015, http://museumvictoria.com.au/collections/themes/2676/land-boom-in-1880smelbourne
Lewis, Robert, The Australian Homefront during World War 1, viewed 10 April 2015, http://www.anzacday.org.au/history/ww1/homefront/homefront.html
Australian Government 2009, The Great Depression, viewed 10 April 2015, http://www.australia.gov.au/about-australia/australian-story/great-depression
Australian Bureau of Statistics 2012. Science and Technology in Australia, CSIRO, Canberra http://www.competitivealternatives.com/REPORT/DEFAULT.ASP
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016
Brewer, Paul 2015, IBUS2302 Globalisation and Business, lecture 1, week 2: Globalisation Characteristics, lecture PowerPoint slides, viewed 11 April 2015, https://learn,uq.edu.au
Koomen, Kaaren, Australia’s service sector booming, viewed 11 April 2015, http://www.austrade.gov.au/ArticleDocuments/3592/Australia-Europe-Brief201112.pdf.aspx+&cd=10&hl=en&ct=clnk
Australian Services Roundtable 2014, China Australia Free Trade Agreement paves the way for Australian services export boom, , viewed 11 April 2015 http://servicesaustralia.co/media-releases/china-australia-free-trade-agreement-pavesthe-way-for-australian-services-export-boom,
Ernst and Young, Globalization and new opportunities for growth, viewed 9 April 2015,
http://www.ey.com/GL/en/Issues/Driving-growth/Globalization---Looking-
beyond-the-obvious---2012-Index
Australia dan globalisasi…, Peter Kurniawan Hutomo, FE UI, 2016