Competition Policy, Industry Policy and Deregulation of the Australian Economy

The Australian economy has experienced two major waves of reform in recent years. The first was characterized by reform of the traded goods sector and deregulation of financial markets. This wave of reform provided the impetus for reform of the non-traded sector, particularly GBEs, transport, labor markets, and other services. These reforms are continuing, indeed they must continue if Australia is to maintain or improve its economic conditions, but those reforms are now driving reform in a third area: reform of the framework within which economic activity occurs. Among the most important aspects of this third wave will be reform of Commonwealth/State relations, competition policy, and regulation. Such reforms will facilitate increasing competition throughout the Australian economy which is the key to higher productivity and growth.