Greece has been shown how they can achieve structural reforms if they follow Australia’s model.
The event ‘Structural Reform: An Australian Success Story’ was held in Athens this week, and was organised by the Australian Embassy, the Hellenic-Australian Business Council (HABC) and the Foundation for Economic and Industrial Research (IOBE) to promote positive changes in the Hellenic Republic.
Visiting Professor Gary Banks, Dean of the School of Government of Australia and New Zealand (ANZSOG) and former Chairman of the Australian Productivity Commission, spoke at the event which was also addressed by the Australian Ambassador to Greece Ms Jenny Bloomfield and IOBE chairman Odiseas Kyriakopoulos.
Ms Bloomfield referred to the social and economic stability currently enjoyed by Australia, as a result of the most extensive economic and social reforms in decades, and the opening of the Australian economy to competition.
She stressed the role of Professor Banks as one of the most influential scientists of Australia, Chairman of the Productivity Commission in Australia’s effort to implement the structural changes that have ensured economic and social stability for two decades.
“In Australia, through the will of the political leadership, technocratic and scientific support institutions such as the Productivity Commission and a broad social consensus, we conducted a national debate that allowed us to formulate a shared vision for the future of our country. We drew a roadmap for the implementation of radical changes that have led to economic growth.The important lesson of our experience is that the future of any country lies in the hands of its citizens,” Ms Bloomfield said.
Odiseas Kyriakopoulos referred to the significant progress made in fiscal adjustment and emphasized the key role of structural change for the country’s return to a growth path.
“It is certainly obvious that reform experiences cannot simply be transplanted from country to country, but we can learn important things from the experiences of other countries such as Australia,” Mr Kyriacopoulos said.
In his speech, Professor Banks referred to the strategy and challenges encountered to achieve the transition of Australia from the protectionist regime to a free market.
According to Professor Banks, a change in Australia’s model of economic operation was dictated by the decline of the economy.
In 1950 the Australian economy was in fourth place, according to the classification by OECD, dropping to 14th place in 1983.
The implementation of reforms in the early 1980s and the liberalization of markets and the economy, allowed Australia to regain lost competitiveness and in 2010 the economy was back in 5th place (OECD).
Referring to the obstacles encountered in the course of the effort, he said that there is a lag between cost, which is usually immediate, and benefits, which are achieved in the long run. He also noted that, while the cost of a reform is specific, the benefits may cover a much wider range of factors.
Professor Banks also referred to a series of innovative public institutions in Australia, which contributed decisively to supporting reforms such as the Productivity Commission and the Office of Best Practice Regulation.
Australia’s Productivity Commission is an independent government agency that examines discriminatory policies, programs and regulatory actions, and provides research and consulting services regarding reforms that serve the long-term national interest.
The Commission has an advisory role for a wide range of activities including issues of sectoral support and trade policies, regulatory frameworks for infrastructure and public services, competition and consumer regulation, labour market reforms, social and environmental programs, reduction of bureaucracy in the business industry and productivity issues.
John Kalogirou, Professor of Economic Technological and Industrial Strategy at NTUA, referred to the importance of the international transfer of knowledge and experience on both the design and implementation of public policies to improve the productivity and competitiveness of the Greek economy. He stressed the urgent need to develop a strategy to improve the competitive position of the Greek economy.
Professor Nikos Vettas, Athens University of Economics and Business, referred to the growth and productivity increase program in Australia and noted similarities and significant differences from the Greek case.
In Greece’s case, according to Mr Vettas, design and implementation of such a policy has been relatively much less important than the fiscal adjustment.